The cryptocurrency industry is actively developing, and most likely Web3 assets will show the main growth in 2023. Currently, metaverse project tokens are in demand, and Web3 altcoins are trying to maintain the economy of the virtual world with the help of their ecosystems and decentralization.
The total cryptocurrency market cap in 2021 amounted to $3 trillion; today, it has decreased to $1 trillion. Given the economic factors, this is a good time for investment and future growth, and the main thing is to choose the right coins to invest in.
What Are Web 3.0 Cryptocurrencies?
You can find out more about Web3 cryptocurrency assets if you go back in time and understand the basics of Internet development. In the 1990s, the Web 1.0 network was first created, which was notable for very slow loading times. Next, there was Web 2.0: modern Internet, fast connection, 5G data, and online broadcasts. The next generation will be Web 3.0, and the challenge is to bring web usage to the next level with a focus on technology. The main ones are:
- smart contracts;
- artificial intelligence (AI);
- machine learning.
The entire Web 3.0 system will interact with the described technologies in a unified way. To invest in the future, an ordinary user can simply purchase a few Web3 cryptocurrency assets because both tokens and blockchain technologies are the basis of the Web 3.0 ecosystem.
Web 3.0 and Metaverse Compatibility
To get the proper Web 3.0 functionality, three main parameters need to be achieved:
The compatibility of Web 3.0 with the metaverse sector can be seen in NFTs. With the help of modern technology and the possibilities of virtual reality, users can interact with each other, and Web 3.0 facilitates communication, trade, and other relationships in the virtual world.
Web 3.0 is currently a collection of blockchain apps that can be compatible by combining them with metaverse ideas. For example, Decentraland makes it possible to manage the virtual world by purchasing and selling digital real estate. First, a user will need to buy LAND, which will determine the ownership of a virtual land parcel. The MANA cryptocurrency is needed to facilitate the purchase of LAND and in-game goods within the virtual world. The market itself allows people to exchange LAND tokens and simplifies transactions with in-game objects.
The Web 3.0 Internet is a key component for metaverses and beyond. The concept is less restrictive compared to the centralized Web 2.0 network, where permissions for interactions are necessary.
Benefits of Investing in Web3 Cryptocurrencies
For a reasonable investment decision, you will need to conduct your own analysis and study the project in more detail. This will give more confidence in the purchase of a particular asset. In the process of becoming familiar with the best Web3 assets, several investment advantages will be obvious. Let’s consider them in more detail!
The main advantage of investing in Web3 tokens is the ability to automatically access decentralization. This is the main idea that mankind first saw in the form of Bitcoin. In a basic sense, decentralization eliminates third parties during transactions, making the process much easier.
For example, the modern Internet directly depends on an ISP or other service provider that stands in the way between users and websites. This causes certain difficulties since a centralized system completely controls access to the Internet. If Web 3.0 gives people decentralization, website information will be stored on several servers in different parts of the world, eliminating the prohibition or restriction of access to them.
No Permissions & Censorship
By introducing a new generation of the Internet, the authorities will not be able to impose their restrictions, so citizens of any country will be able to access any web resources. It has been forbidden to use Google, YouTube, and Facebook in China for a long time. Thus, it turns out that about 1.5 billion people cannot access content without a VPN. Similar issues exist in other countries, especially when it comes to news from international sources.
The Web 3.0 concept is a decentralized system that does not require permissions and guarantees complete freedom of users, and the web itself will no longer be censored.
Growth Opportunity & Potential
An equally important advantage of buying Web3 coins is that cryptocurrencies of the future have great growth potential. A well-built investment portfolio will likely show growth as the Web 3.0 ecosystem develops. In other words, growth in monetary terms can last for years and reach the highest ROI.
For example, the MANA asset of the Decentraland project, after launching in 2017, showed an increase of 23,000%. In other words, by investing $100 in cryptocurrency 5 years ago, you could make a profit of 230 times more, which is not the limit.
Easy to Diversify
Given the possible risks, investing in cryptocurrency also reduces potential losses through diversification. Simply put, an investment must be divided into several parts and consist of various assets. Some assets may disappear from the market forever, some will show a slight price increase, but others will develop rapidly, providing investors with big profits. This profit, in turn, will cover possible financial losses.
For example, Ethereum is the Web 3.0 blockchain of choice. Most new projects create their own platform on the Ethereum network. Considering Solana, it can be noted that it is faster, cheaper, and much more efficient in terms of scalability than Ethereum. A similar example is Cardano and NEO. Thus, it would be wise to diversify funds by acquiring assets from several Web 3.0 blockchains at once.
Web3 is a brand-new industry that is just at the start of its development. The growth of Web 3.0 cryptocurrencies is inevitable, and the network itself is being created on a model of greater utility, openness, and decentralization. The number of supporters of the idea is increasing daily, and strong support from their side can cause rapid growth of Web 3.0 tokens.
Despite this, investing in cryptocurrency is a rather risky and speculative activity. Before investing your own money, it is important to analyze, invest, observing risk and money management.