Investing in digital currencies on the internet is extremely common and widespread across the globe these days. With growing access to digital technology and the internet, the benefits of having decentralised capital is spreading rapidly amongst all kinds of people who wish to secure a guaranteed source of capital in the upcoming future– where the digitization of money will likely be a global phenomenon. However, is this decentralisation sufficient to ensure the security of these digital assets? How bright is the future of such digital currencies? To dissect this, let us go back to the beginning of the web’s history.
Web 1.0 is the first ever form of the World Wide Web to come into being. During this era, there were only a few number of content creators with way too many consumers of online content. Web 1.0 had also completely put a ban on ads from appearing on web pages, while user-surfing. This era began in the year of 1991, and remained until 2004. It consisted of Static pages, was a less interactive module than the present internet, and allowed just a limited, one-way publishing medium.
Also known theoretically as the participative social web, Web 2.0 was the agent to completely transform the way Web pages on the internet were designed and used. Through the induction of user interaction and collaboration in the form of social media , Web 2.0 generated what can today be called an entire virtual community. Web 2.0 was the one to offer its users dynamic and user-input responsive content. It also led to the development of APIs, which facilitated self-usage by the use of software applications. Web 2.0 has therefore become an online digital platform, where people from all over the world come to document and share their thoughts, views, perspectives, as well as experiences in multiple digital forms. Applications on Web 2.0 are way more interactive and communicative with the end user, as compared to its previous version. This is possible due to content creation happening in the form of Podcasts, Blogs, Social networking and media, as well as online content voting.
Web 3.0, the future form of the Internet, involves presenting the Web in the form of a database, integrated with Distributed Ledger Technology. For example, blockchain. Web 3.0 is actually an umbrella term, which is often used to describe various up-gradations of the World Wide Web. The Semantic Web 3.0 mandates domain-specific ontologies that machines utilise to reason data and generate further conclusions, instead of just merely recognizing keywords. This helps make the user experience quick, customised, and convenient. The advanced modern features of this new generation web are Artificial Intelligence, 3D Graphics, semantic metadata, greater security, and larger investment opportunities all across digital platforms.
While the 3rd Generation of the World Wide Web is still in its initial and developmental phase, the early birds who grab the chance to invest first in the crypto market are expected to be rewarded better, as compared to the latecomers. Investment funds are also in the process of exploring blockchain framework, as well as crypto opportunities. Digital capital like NFTs already have a large number of users, with a potentially high growth expectancy rate. As estimated by German market analyzer platform, Statista, the annual growth rate of NFTS is currently at 18.55% — which is expected to be valued at $3,162.00 million in another 4 years. Therefore, it is evident that investing in digital assets on Web3.0 is a very tricky game, given the sector’s recent development. However, to stay safe and secure, investors are recommended to practise utmost caution in carrying out digital transactions and should ensure the secure storage of assets as well.
How to invest in Web 3.0?
Just as all other forms of market investments present several scary threats, investing in digital currency and assets on Web 3.0 is also potentially risky. Therefore, as mentioned above, investments in the third-generation digital assets should be made with sufficient knowledge and a strong strategy. This is why Web 3.0 gives investors different types of agents to cater to various kinds of customised risk types. The most widely known investment options are stocks, crypto, and NFTs. However, other less popular investment platforms are also available. In both methods, participating in a seed round to purchase pre-launch currency at the first investment step to be done interested by investors.
Maximum investing trends on the 3rd Generation Web are based on narratives. However, it is recommended that decisions must not depend on them, as some of the Web3 funds may initially push a project proposal that may look promising in the beginning, but may end up getting dumped later on. Instead of narratives, investors should look for investments that have a record of consistent and adequate historic performance.
Therefore, it is evident by now that investing on the new generation web can be an extremely challenging task, especially for beginners. It is essential that investors carry out proper research, and carefully analyse market data, while considering the following factors-
- The investment goal/s,
- The team of a project/ company,
- Risk tolerance ability,
- National Web3 regulations
After mapping out the investment goals and a timeline, investors must wisely choose projects that have publicly known or declared founders, preferably in their native country, in order to avoid legal and other issues over the investment.
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