How to Invest in Web3: Investor’s Guide 2025

Wondering how you can invest in the next phase of the Internet? 

In this guide, we’ll break down what Web3 is and share a few steps that can help you get started investing. 

Disclaimer: This article does not constitute investment advice and any crypto-assets/stocks mentioned in this article are not necessarily recommended investments. You should be aware that crypto-assets are volatile and be aware of any associated risks before investing. 

What is Web3? 

Web3 is a phrase that refers to a new phase of the Internet built on decentralized blockchains — where businesses and content creators can control and monetize their data with the help of aggregation platforms like Google, Facebook, and Instagram.

What does Web3 mean? 

To better understand what ‘Web3’ means, we should walk through a condensed history of the Internet and explain the terms Web1, Web2, and Web3. 

Web1: Web1 refers to the early days of the Internet (early 90s to mid 2000s). 

During this time, many businesses and content creators created their own websites to reach users all around the world. However, the sheer amount of content on the Internet made it difficult for creators to reach their audience, and difficult for users to find relevant products, services, and content. 

Web2: Web2 saw the rise of big aggregation platforms like Google, Facebook, YouTube, and Instagram to help users easily find content they were interested in and sort through the noise of the Internet. 

While Web2 allowed them to reach their target audience, businesses and creators were often at the mercy of the platforms. A simple shift of the algorithm or an unexplained ban could cause a giant loss in revenue. 

In addition, users were required to hand over their personal data to use these platforms. Platforms would then use this data for targeted advertising. 

Web3: Web3 represents a future where businesses and content creators can reach audiences all over the world without relying on platforms. 

Creators can use NFTs to sell content directly to their audience, without the help of a middleman. The NFT boom in 2021 was one of the first examples of how Web3 could create a new Internet — as the artist Beeple sold one of his artworks for a record $69 million. 

Web3 also allows users to maintain control over their personal data. They can choose when and how to share it using blockchain-based identity and storage solutions.

Platforms like Farcaster make this possible—user data is stored in decentralized “hubs” instead of centralized servers. This means no single company has access to your personal information.

How did Web3 get started? 

The term ‘Web3’ was coined by Polkadot founder and Ethereum co-founder Gavin Wood in 2014. The term was further popularized by cryptocurrency proponents such as venture capitalist Chris Dixon, who wrote an article titled Why Web3 Matters. 

What is the Web3 ecosystem? 

The Web3 ecosystem is built on blockchain technology. ‘Smart contract’ blockchains like Ethereum allow developers to create NFTs and decentralized applications — which may form the backbone of Web3. 

How Web3 helps creators: NFTs allow creators to monetize their audience directly. Instead of building audiences on platforms like Facebook and YouTube, NFTs allow creators to sell NFTs directly to their biggest supporters. These NFTs can come with benefits — such as access to a community and exclusive content! 

How Web3 helps companies: Meanwhile, decentralized protocols enable a new approach to building a company. Protocols have the ability to airdrop tokens to early users — giving them a stake of the platform and a voice in future governing decisions. 

This helps enable a new company structure — decentralized autonomous organizations (DAOs) — where the project is controlled by tokenholders and early users. DAO enthusiasts believe that allowing early users to steer the direction of a platform can lead to greater innovation.

What are the latest trends in Web3? 

Crypto-friendly regulation 

The Biden Administration was often criticized for being ‘anti-crypto’. As a result, some analysts claimed that regulations were stopping the development of Web3. 

In contrast, the Trump Administration has been strongly pro-crypto and has appointed crypto-friendly regulators to key positions. It’s possible that the changing stance of the federal government will lead to a new wave of Web3 innovation. 

Increased investment 

Venture capital investment in Web3 declined sharply after 2022. This is likely due to strict regulations on crypto and negative sentiment about the space after the collapse of FTX. 

In 2024, investment in Web3 rebounded strongly — possibly due to more optimistic sentiment about the crypto ecosystem.  

Web3 and AI 

Investors have become increasingly interested in Web3 startups that use artificial intelligence (AI). It’s estimated that investment in AI Web3 projects doubled from 2023 to 2024.

How to invest in Web3 

Let’s walk through a few different assets that will give you exposure to Web3. You should do your own research before investing in any of the assets mentioned below. 

Cryptocurrencies

It’s likely that Web3 transactions will be facilitated through blockchains that enable NFTs and decentralized protocols. As a result, many Web3 proponents invest in cryptocurrencies like Ethereum, Solana, and Cardano. 

What do I need to start investing in crypto?:To get started investing in Web3 cryptocurrencies, you’ll need to start with a cryptocurrency exchange like Coinbase or Kraken. You should also use a software wallet like MetaMask or Phantom to store your crypto and interact with decentralized apps. 

Stocks 

While there’s no stock that represents the entirety of what Web3 could be, there are stocks that can give users exposure to Web3. 

1. Coinbase: Coinbase is one of the world’s largest and well-known cryptocurrency exchanges. If Web3 reaches its potential, it’s possible the platform could be the on-ramp for millions of new users. ‍
2. Robinhood: Robinhood is another popular platform used for trading crypto assets. In 2025, Robinhood acquired the crypto exchange Bitstamp — a sign the company is bullish on Web3.
3. ‍Unity Software: Unity Software creates one of the world’s most popular game developer engines — Unity. Recently, Unity introduced a ‘Decentralized’ section of the game asset store to allow developers to introduce crypto-assets into gameplay.  

NFTs 

Many proponents of Web3 say that NFTs could play a critical role in the digital economy of the future. Instead of monetizing on Web2 platforms like YouTube, creators can potentially use NFTs to build a direct relationship with their audience. 

For example, NFT communities like Bored Ape Yacht Club (BAYC) allow users to become part of the BAYC community — which includes celebrities like Steph Curry and Eminem — and receive digital airdrops from the BAYC team.

Still, it’s important to remember that the NFT space is rife with scams, and even legitimate projects have a high chance of failure. Before you get started investing in NFTs, do your research on the team and the community, 

Can I invest in Web3 if I don’t have money? 

Don’t have the money to make a substantial investment just yet? Here are other ways that you can get started in Web3. 

Find a job with a Web3 company 

One way to invest in Web3 is to find a blockchain job with a company or startup in the space. If you have experience with coding, marketing, or sales, it’s likely that blockchain-related startups need your skills! 

Play cryptocurrency games 

You can play cryptocurrency games that give crypto rewards through the course of gameplay. For example, Axie Infinity gives users cryptocurrency in exchange for winning in-game battles with Pokemon-like creatures known as Axies. 

Use a cryptocurrency browser 

Cryptocurrency browsers give you cryptocurrency rewards after viewing ads on the browser. Brave Browser is a popular choice for cryptocurrency investors, paying out rewards in the form of Basic Attention Token (BAT). 

For more information, check out our guide to earning cryptocurrency for free. 

Can I passively invest in Web3? 

At this time, there’s no ETF on the NYSE that tracks the total value of Web3 technologies. While there are Ethereum ETFs available, this does not account for Web3 projects built on Solana and other blockchains. 

However, there are alternatives that you can explore. For example, the cryptocurrency Total Crypto Market Cap (TCAP) is meant to track the total price of all crypto-assets. This coin could increase in value if Web3 reaches its full potential.

What are potential risks of Web3 investing? 

It’s important to remember that investing in Web3 projects comes with several risks. Here are a few you should consider before you invest. 

Will Web3 reach its promise?: Many critics claim that Web3 proponents often make grandiose claims that may never come to fruition. While the Web3 narrative was popular in 2021, many critics have claimed that the ecosystem has not made substantial progress. You should do your own research on Web3 and relevant projects before you make any investment decision. 

Will Web3 be easy to use?: Many claim that user-experience is one of the main barriers to mainstream Web3 adoption. While setting up a bank account or an account on a platform like Facebook is easy, getting started with a cryptocurrency wallet takes time and effort. 

Which blockchains will Web3 be built on?: At this point, it’s unclear whether Web3 will be built on Ethereum or another blockchain that offers faster speeds like Solana. It’s possible that an investor who chooses one blockchain may miss out on future returns if future Web3 entrepreneurs choose to build elsewhere. 

While Solana offers faster speeds, critics claim that it is too centralized.

Meanwhile, Ethereum relies on Layer-2 solutions to enable fast Web3 applications. Critics claim that this leads to less value accruing to the Ethereum network. 

‍What NFTs/protocols will be relevant in the future?: Some Web3 proponents choose to invest in niche NFTs and decentralized protocols. Unfortunately, there’s no guarantee that any individual project will be successful — even in the event that Web3 reaches its potential.

Want to calculate your potential profits from Web3 investing? Check out our free online Crypto Profit Calculator.