How to make money with Web3: A guide to personal investing

How to make money with Web3: A guide to personal investing

The rise of Web3 has not only brought about technological innovations, but has also provided many new opportunities for individual investors to make money. So, what exactly are the ways to make money with Web3? How much can individual investors earn? Today we will explore in detail.

Cryptocurrency investing: the most direct way

Cryptocurrency investing is the most direct way to enter the Web3 world. Bitcoin and Ethereum are the most common cryptocurrencies, and their price volatility and return on investment can be substantial.

To start cryptocurrency investing, you need to choose a reliable exchange such as Coinbase, Binance or Kraken.After registering an account, you can purchase cryptocurrencies via bank transfer or credit card. After holding the cryptocurrency, you can choose to hold it for the long term (HODL) or trade it for the short term.

The cryptocurrency market is very volatile, so the potential gains and risks are high. As an example, at the beginning of 2020, the price of Bitcoin was about $7,000, while at one point at the end of 2021, it was over $60,000. If you invested $1,000 at the beginning of 2020, your investment could increase in value to about $8,500 by the end of 2021.

Decentralized Finance (DeFi): High Yield Financial Instruments

Decentralized Finance (DeFi) is one of the hottest areas of Web3. The DeFi platform offers a variety of financial services such as lending, trading and pledging through smart contracts. Unlike traditional financial institutions, DeFi platforms do not require intermediaries and transactions are more transparent and efficient.

On the DeFi platform, you can earn by providing liquidity, lending and pledging. For example, by providing liquidity on Uniswap, you can earn a share of transaction fees; by lending on Aave, you can earn interest; and by pledging your cryptocurrencies on the Pledge platform, you can earn Pledge Rewards.

DeFi typically offers higher returns than traditional financial instruments, but it's also riskier. In the case of pledges, for example, the annualized percentage yield (APY) on certain platforms can be in the double digits or even higher, but you're taking on platform risk and market volatility risk.

Non-homogenized tokens (NFT): investment in digital collectibles

Non-homogenized tokens (NFTs) are another hot area for Web3. NFTs are unique digital assets that can represent artwork, music, videos, game props, etc. The value of NFTs comes from their uniqueness and scarcity.

You can buy and trade NFTs on platforms such as OpenSea, Rarible, etc. Many artists and creators have earned significant income by distributing NFTs. For example, digital artist Beeple's NFT Everydays: The First 5000 Days sold for a whopping $69 million at Christie's auction house.

For the average investor, buying and holding potential NFTs can be a way to make money. However, the NFT market is volatile and you need to be careful with your investments. You need to be aware of market trends and the potential value of your work to avoid blindly following the trend.

Participation in Decentralized Autonomous Organizations (DAOs): Co-Governance for the Common Good

A Decentralized Autonomous Organization (DAO) is a blockchain-based form of organization where members participate in governance and decision-making by holding tokens.DAOs have a transparent decision-making process where all members have a voice.

As a member of a DAO, you can be rewarded with tokens by participating in governance and decision-making. For example, certain DAOs distribute governance tokens, and holding these tokens not only allows you to participate in voting, but also to receive dividends.

The benefits of participating in a DAO depend on the success of the organization. If the DAO's project is successful, the value of the tokens may rise dramatically, bringing substantial returns. However, DAOs also operate at a higher risk and require you to have a deep understanding and judgment of the project.

Summary: Web3 Money Making Opportunities and Risks

Overall, Web3 offers a variety of money-making opportunities for individual investors, including cryptocurrency investments, DeFi, NFT and DAO. The potential returns of all these investment options are substantial, but the risks should not be ignored.

Before entering into Web3 investment, it is recommended that you do sufficient research and preparation to understand the characteristics and risks of each investment method. Remember, investment involves risks and you need to be careful when entering the market.

I hope this article has helped you better understand the Web3 money making opportunity and start your investing journey. I wish you good luck and prosperity in your investment!