How to Invest in Web3: The Next Phase of the Internet

Nov 14, 2022
text saying "investing in Web3"

The internet is currently transitioning from its second phase to the third phase. This new version is Web 3.0 or simply, Web3. Web3 is expecting rapid growth over the next few years, focusing on concepts like decentralized technologies, AI, and user-centric content. With more security and improved utility,  many are asking “how to invest in Web3” and capitalize on early growth. 

Since YouHodler is actively taking part in building Web3, we have some nice tips for you in this introductory guide. We’ll cover just what to expect from the internet’s next major phase and how you can position yourself well for the future. 

What is Web 3.0?

Web3 is the next version of the Internet. We are currently on the second phase, Web2, which began in the early 2010s. Web3 seeks to improve many aspects of the internet that we all love. It will focus on decentralized technologies.

Many of these technologies are already in use and are becoming more popular. They include NFTs, blockchains, DeFi (decentralized finance) platforms, and VPNs (virtual private networks). 

Want to learn more about NFTs, blockchain tech and DeFi? Perhaps these articles will help:

Web3 will also be more user-centric, allowing individuals to control their data. Users won’t need to go through a third party to access the internet or even verify transactions. People who have prepared for the paradigm shift open themselves up to profitable opportunities.

Web 2.0 vs. Web 3.0

How to invest in Web3?

There are different approaches to investing in Web 3. You can invest in Web3 passively or actively. Both strategies offer benefits. Ultimately, you should choose which strategy fits your financial development goals and availability.

Passive investments allow you to hold your virtual assets' long-term, and accrue value on them. Actively investing will launch you into helping develop Web3. 

Let’s explore how to invest in Web3 both actively and passively. If you want to become actively involved in Web3’s progress while investing, you can:

  • Find a job with web3 company
  • Purchase cryptocurrency from growing Web3 companies as an investment. 
  • Mine crypto like Bitcoin. 
  • Use Web3 projects that reward you for staking, playing, and more. 
  • Keep an eye out for crypto community AirDrops. 
  • Buy and hold cryptocurrency while the prices are cheap now.
  • Invest in Web3 company stocks on the traditional stock market. 
  • Use crypto lending platforms to access more investment capital.

Find a job with a Web3 company

Tech companies are looking towards the future, searching for talent that can help create a better one. If you have experience in coding, blockchain development, or other technical skills, you’re needed!

YouHodler is hiring! Click here to help us on our evolution to Web3 banking.

Mine crypto

Bitcoin mining is the most popular example of crypto mining. Use the right setup of hardware and software to solve complex codes. You can verify new blocks of transactions and get rewarded in cryptocurrency in the process.Web3 wallets will bring crypto to a new level of utility all around the world. Gathering crypto and other digital assets of value now will only pay off in the long run. 

Get involved in Web3 projects

There are many Web3 projects you can earn money through, including play-to-earn models. Games like Splinterlands and Polygon reward players with digital assets! You can also join projects like Theta or Ocean Protocol. These startups use innovative blockchain technology to bring services to users.

Join crypto communities for AirDrops

Some crypto companies will randomly hold AirDrops. Free cryptocurrency tokens will be randomly distributed to member wallets. AirDrops help to increase the crypto’s visibility and entice more people to join. Just make sure to verify that your AirDrop is reputable and secure!

Passive investments are wonderful opportunities for those with limited free time and funds. Day traders or beginner investors can use these strategies to their advantage. There is no shortage of Web3 investments that require less time and energy:

Hold your crypto

Instead of frequently buying small amounts of crypto, hold onto your stake in a cryptocurrency. The market demand for many cryptos is increasing at a fast rate. It is also becoming a more accepted payment method. Simply wait for your crypto to become more valuable and versatile! Some platforms like YouHodler even pay high yield rates simply for holding on their platform.

Invest in Web3 company stocks

Many Web3 companies are reaching new heights, and are predicted to continue growing. Purchasing their equities now will generate a hefty profit for you. These companies include Nvidia, Coinbase, and IBM. You can also invest in smaller Web3 startups. Their stocks may have a lower price now but have the potential to become incredibly valuable.

Use crypto lending platforms

Crypto lending platforms are a great place for beginner traders to get started. You can borrow funds to accelerate your crypto investing and diversify your portfolio. Once you have a decent amount of funds, you can also loan out your crypto to other traders. In exchange, you’ll be able to collect interest on your loans. 

Suggested reading: YouHodler Reduces Crypto Lending Rates

Investing in the Metaverse

When discussing how to invest in Web3, the Metaverse will surely come up in discussion. The Metaverse and its rare virtual assets are a lovely Web3 investment opportunity. The Metaverse refers to a fully immersive, 3D virtual reality. Users will be able to access the Metaverse through the Internet. It can be used to build social connections and conduct business. 

The Metaverse already exists, but tech companies are frequently upgrading the technology to advance it. The Metaverse will become more accessible, versatile, and advanced. Many landscapes exist in the Metaverse, and you can build anything within it. From art galleries, offices, clubs, and mansions - you can achieve it in the Metaverse. 

You can also claim ownership of assets in the Metaverse. For example, there are many popular games you can play in the Metaverse with a virtual avatar. You can purchase limited edition characters or character skins (special outfits and accessories). Some games use NFTs to represent artwork, music, and other visuals. You can buy them, along with other in-game items, through Web3 wallets. 

You can even buy plots of land in the Metaverse as “virtual real estate.” Decentraland is a perfect example of a thriving Metaverse platform. It supports its community in exploring and investing in its land. 

Is Decentraland a good investment?

Decentraland is a 3D virtual reality you can access from your browser, and part of the Metaverse. It is also a DAO (Decentraland is a 3D virtual reality you can access from your browser, and part of the Metaverse. It is also a DAO (Decentralized Autonomous Organization). Its users own and operate the platform. You can create worlds, explore other “LAND”, and trade digital assets with each other. 

Backed by the Ethereum blockchain, Decentraland is also secure to use. It has become a massive cryptocurrency, with a supply over 100 times that of bitcoin. The Metaverse platform currently has a market capitalization of over $1 billion. 

The virtual universe is easily accessible, through your browser. Its community has a say in all decisions through the DAO voting process. Every detail is customizable, down to the accessories your avatar wears. It has a marketplace for all users to access, where you can view the DAO’s revenue, sales, and volume. The platform sees over 200 NFTs every day, with a total volume of over $350,000.

You can browse listings for real estate parcels, character names, wearables, and more. Users buy with MANA, an Ethereum-backed cryptocurrency. You can attend events to buy collectibles, like their yearly Metaverse Music Festival. Some of the world’s assets, like its plots of land, have market caps, while others - like wearables and event items, do not.

Since 2021, Decentraland has reached new heights in value. Experts predict MANA will reach an all-time-high value by 2030, at over $6.50. However, the Metaverse and its assets are a volatile investment. Delays in development or changing sentiments can affect the Metaverse platform’s value. Investing in the Metaverse opens the door for you to lead the adoption of MANA and the Metaverse, but it comes with risks. 

5 Tips for Investing in Web3

Get educated. Take time to learn about Web3 technologies, projects, and trends. Follow thought leaders, join online communities, and read up on the space. 

Start small. As with any new investment, it's wise to start with small amounts you can afford to lose as you learn the ropes. Gradually increase your positions as you gain knowledge and confidence.

Diversify. Don't put all your eggs in one basket. Spread your Web3 investments across different projects, sectors, and asset types. Consider a mix of established players and promising up-and-comers.

Think long-term. Web3 is still in its early stages. Many of the most exciting projects and applications are yet to come. Take a patient, long-term view and be prepared to weather short-term volatility.

Stay secure. Crypto and Web3 investing, unfortunately, attracts scammers and hackers. Prioritize security using trusted wallets (scroll down to see some of the best Web3 wallets), enabling 2FA, bookmarking official sites, and triple-checking addresses. Never share your private keys or seed phrases.

Benefits and Risks of Investing in Web3


  • Opportunity to get in early on a rapidly growing technology trend
  • Potential for outsized returns compared to traditional investments
  • Ability to directly own a stake in next-generation internet services and infrastructure
  • Greater financial inclusion and control over your digital assets and data


  • Extreme volatility and unpredictable price swings, even among major cryptocurrencies
  • Regulatory uncertainty as authorities grapple with how to govern decentralized technologies
  • Higher risk of scams, hacks, bugs, and exploits compared to traditional financial markets
  • Many Web3 projects and cryptocurrencies will likely fail, similar to the dot-com era.

What are the best Web3 wallets for investing in Web3?

YouHodler's Web3 wallet

With all that’s going on in the crypto market right now, it’s not easy searching for a trustworthy Web3 wallet provider. Due diligence is more important than ever as is transparency and reputation. We’ve seen companies fall that lacked sustainable business models and engaged in dishonest behavior outside the platform. 

YouHodler wants to take this opportunity to say we never use client funds for any activities outside of the platform. For that reason, we can manage risk and liquidity very effectively. Furthermore, we don’t offer any products that are “too good to be true.” Everything you see on our platform is realistic and within reach of our capabilities.

Currently, we are in the process of building Web3 wallets compatible with Web3 banking features. We are combining the best elements of Traditional Finance and cryptocurrency. Building a bridge between the two worlds that will put the power of both in the palm of your hand. 

This bridge is the natural evolution of finance in our opinion. The two industries will come together as one and you need a Web3 wallet to interact with it all. YouHodler is providing that. Many of these features are available right now. 

So download our app or give our website a try. Enjoy our top-tier security features, international reputation, and user-friendly financial services. Our customer support team is here to help 24/7 at support@youhodler.com.

Get YouHodler Crypto Wallet App

An efficient and innovative tool powered by crypto-backed loans to help you capitalize on market volatility

YouHodler is regulated in  Switzerland and the EU

Partnership with regulated EU/Swiss payment providers

YouHodler S.A. Regulated Financial Intermediary and Pawn Broker

YouHodler Italy S.R.L. OAM Registration

VASP Registration wth the Bank of Spain