Summary: Web3 stocks have been gaining significant attention in the investing world as the emerging decentralized internet solutions built on blockchain technology purport to provide a safer, more transparent, and more user-friendly online experience. By investing in companies that drive the technology, many investors believe they stand to partake in a digital revolution and distance themselves from centralized entities controlling the internet.
In this guide, we’ve prepared a short list of 5 Web3 stocks to buy in 2024 and potentially profit from the ongoing decentralization efforts. To invest in stocks on our list, users can open an account with an online stock trading platform such as eToro.
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What are Web3 stocks?
While it is true that artificial intelligence (AI) has been stealing the spotlight and pushing Web3 projects to the sideline, you still ought to keep an eye on this rapidly evolving landscape. After all, companies leveraging Web3 technology combine the potential of blockchain, cryptocurrencies, and AI to reshape the future of the Internet.
As a consequence, diving into Web3 stocks can involve exploring companies working not solely on Web3 but also on blockchain-based solutions, decentralized finance (DeFi) platforms, decentralized applications (dApps), and other innovative technologies.
5 Web3 stocks to invest in 2024
Investing in Web3 stocks can be a good way to gain exposure to Web3, blockchain, and AI technology, as well as ensure some passive income through dividends if you invest smartly. For starters, you can check out companies such as:
- Coinbase (NASDAQ: COIN);
- Meta (NASDAQ: META);
- Unity (NYSE: U);
- AMD (NASDAQ: AMD);
- Nvidia (NASDAQ: NVDA).
You can invest in all of these Web3 stocks through eToro.
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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1. Coinbase (COIN)
Coinbase is a leading cryptocurrency exchange whose popularity has grown exponentially with the rise of Web3 technologies. As virtually the first commercially successful cryptocurrency exchange that broke it into the mainstream, Coinbase is actively investing in new companies and related technologies to solidify its position in the Web3 ecosystem.
Recently, Coinbase introduced a Web3 crypto wallet through its Prime division, allowing secure access to cryptocurrencies, dApps, and other DeFi services and facilitating smart contract executions.
Coinbase stock price today
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2. Meta (META)
Meta Platforms (formerly known as Facebook) is a social media giant that aims to develop a metaverse – a decentralized, immersive, and interconnected virtual world. Should it succeed in its endeavors, Meta could play a crucial role in the future of Web3 technologies.
Right now, Meta enjoys a strong track record in social media and technology, with Instagram, WhatsApp, and Facebook under its belt.
Meta stock price today
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3. Unity (U)
Unity is a leading game engine and augmented reality software provider. With the growing interest in metaverse and virtual experiences, Unity’s expansion into Web3 technologies is expected to bring significant growth opportunities if it maintains its strong position in the market.
Unity made a move in the Web3 sphere in early 2023 by incorporating a decentralization category within its online store. The move aims to connect game developers with the growing Web3 gaming sector, representing a noteworthy step forward in the gaming industry’s journey toward more widespread use of blockchain technologies.
Unity stock price today
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4. AMD (AMD)
AMD is a semiconductor company whose graphics processing units (GPUs) play a pivotal role in cryptocurrency mining by providing essential support to blockchain networks.
With the escalating demand for stronger GPUs, AMD is strategically positioned to profit from its already vast but growing portfolio of cutting-edge chips, like the Ryzen 9 7950X3D, as well as its strategic acquisitions, for example, Xilinx, a leading provider of specialized embedded chips.
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5. Nvidia (NVDA)
Although widely recognized for its gaming GPUs, Nvidia has been engaging more and more with the AI and machine learning sectors, as well as crypto miners who leverage its cutting-edge chips. In other words, Nvidia has moved beyond gaming, establishing itself as a versatile tech powerhouse.
How does it all play into Web3? Well, Nvidia’s moves appear to be leading towards automation, which could potentially help displace third-party intermediaries across diverse industries, which is one of the core tenets of Web3 philosophy.
Nvidia stock price today
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Where to buy Web3 stocks?
Our preferred platform for investing in Web3 companies is eToro, a user-friendly brokerage with features such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- Charting tools;
- The option to purchase fractional shares.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
Investment strategies for Web3 stocks
As you explore the world of Web3 stocks, it is essential to develop a well-rounded investment strategy. Here are a few key points to consider when crafting your approach:
- Diversification: One of the most important things in investing is to diversify your portfolio. That is, investing in various Web3 stocks allows you to spread your risks and minimize potential losses. For instance, you can invest in different sectors within the Web3 ecosystem, such as blockchain networks, cryptocurrency exchanges like Coinbase, and artificial intelligence companies;
- Long-term and short-term strategies: Consider your investment horizon and risk tolerance. If you are investing long-term and wish to withstand market volatility, look for companies with strong fundamentals and growth potential. If you prefer short-term trades, you can leverage your knowledge of the stock market and trading tips to capitalize on investor speculation and identify opportunities for quick gains. To learn more about crypto trading, you can read some highly-rated crypto books;
- Research and analysis: To make better-informed decisions, you need to be knowledgeable about the companies and technologies involved in Web3. Understand the value proposition, financial health, competitive landscape, and market dynamics of the companies you invest in;
- Risk Management: While Web3 stocks offer the potential for high returns, they also come with risks. To mitigate risks, you should try and develop a clear plan for managing your investments. Set entry and exit points for your trades, make use of stop-loss and take-profit levels, reassess your portfolio, etc.
What drives Web3 technology?
Blockchain is the backbone of Web3. It provides a decentralized ledger and offers more security and transparency, as it operates across a computer network and ensures transactions are recorded. In other words, all nodes on the chain have access to the same data. This enables the creation and transfer of digital assets like cryptocurrencies and non-fungible tokens (NFTs). Also, it allows for less centralized operations. Decentralization, in general, seeks to remove reliance on centralized entities such as internet service providers (ISPs) and tech companies, giving users more control of their assets.
The Internet of Things (IoT) is also poised to play a significant role in the evolution of Web3. IoT refers to the interconnection of things like house appliances and vehicles through embedded sensors and software. Once interconnected, devices can analyze their environment, share data, and perform tasks without human intervention. This can provide the foundation for a more secure and scalable IoT ecosystem. Moreover, Web3 aims to give users greater control over their data by eliminating centralized data storage, which reduces the risk of misuse or unauthorized access.
Pros and cons of investing in Web3 stocks
Pros
- Innovation: Web3 technologies often revolve around innovative solutions, such as DeFi;
- Diversification: Investing in Web3 stocks can help you diversify your portfolio;
- Growth potential: If Web3 becomes more popular, companies investing in it may experience significant growth;
- Decentralization: Web3 is mostly associated with decentralization, which can reduce your dependence on central authorities.
Cons
- Volatility: Web3 is still young, so companies investing in it can be highly volatile;
- No widespread adoption: Widespread adoption of Web3 technologies might take time;
- Competition: The Web3 space is likely to be competitive if it expands.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Web3 stocks
What is Web3?
Web3 is short for “the third era of the World Wide Web.” Web1 was characterized by static web pages, Web2 brought user-generated content and social media, and now Web3 seeks to foster a decentralized and user-centric internet. To achieve this goal, Web3 incorporates technologies such as blockchain, decentralized protocols, and cryptocurrencies.
What is a Web3 company?
A Web3 company typically operates in the space of decentralized technologies, often utilizing blockchain. These companies focus on creating a new generation of the internet where services and platforms are not controlled by a single entity but are distributed across a network. Web3 companies are involved in various sectors like decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized applications (dApps), and more, all underpinned by blockchain technology.
What are dApps?
DApps, short for decentralized applications, are apps operating on a blockchain network instead of a central server.
Can I invest in Web3?
Yes, investing in Web3 is possible through stocks of companies in blockchain and cryptocurrency sectors or related investment funds.
Is there a Web3 stock?
Some of the better-positioned Web3 stocks in 2024 include Coinbase (NASDAQ: COIN), Meta (NASDAQ: META), Unity (NYSE: U), AMD (NASDAQ: AMD), and Nvidia (NASDAQ: NVDA).
Where can I invest in Web3 stocks?
To invest in Web3 stocks, you can open an account at an online stock brokerage like eToro and invest in some companies there.
