Four Tips on Tapping into Web3’s Potential
Web3’s potential offers a whole new world of opportunities for businesses and investors. By investing in digital assets such as cryptocurrencies and NFTs, businesses can get a foothold in this new economy and tap into its vast potential. Here are four easy ways to get your business started with Web3 potential by investing in digital assets.
Tip 1 – Buy Bitcoin or Ethereum
The first and easiest way to invest in digital assets is to buy Bitcoin or Ethereum. These two cryptocurrencies are the most well-known and widely accepted, and as such, they offer the best liquidity and security.Bitcoin and Ethereum can be bought on exchanges such as Coinbase and Binance. Once you have purchased your coins, you can store them in a digital wallet such as MetaMask, Trust Wallet, or Coinbase Wallet. A digital wallet is software that stores your public and private keys and interfaces with various blockchains so users can monitor their balance, send money, and conduct other operations.
Tip 2 – Buy NFTs
NFTs are unique digital assets that can represent anything from digital art and collectibles to in-game items and digital real estate. Some popular places to buy most NFTs include the Ethereum-based platforms OpenSea and Rarible. These marketplaces offer a wide variety of NFTs to choose from, so you are sure to find something that interests you. OpenSea has now expanded to multiple blockchains, including Klaytn, Polygon, and Solana.
Tip 3 – Invest in Web3 protocols and dApps
You also can profit from the growth of digital assets by investing in the underlying infrastructure that powers them. These include protocols such as Ethereum, Filecoin, and IPFS, as well as decentralized applications (DApps) built on top of these protocols. Another common option is to directly inject capital into companies at the seed level, or Series A or Series B rounds.
Tip 4 – Stake Your Digital Assets
Staking is the process of holding onto your coins or tokens in order to earn rewards for participating in the network. Before jumping into staking, however, it is absolutely imperative to understand the risks and implications of staking specific types of cryptocurrencies. Critical questions you should first ask include how to un-stake cryptocurrencies, how to access staked cryptocurrencies, what are the withdrawal delays and early withdrawal penalties, and what are the non-satisfactory staking penalties.
