Top 5 Best Web3 Stocks to Watch: How to Invest in Web3
Technology constantly advances and as such, so changes the ways people utilize the internet and the constant new associated devices. And now - there’s Web3; what are the best Web3 stocks to watch? How to invest in web3?
The internet has revolutionized the purchase and sale of stocks, as well as facilitated the rise of cryptocurrency and NFTs - digital entities which you can purchase and sell like traditional stocks or virtual items.
The environment around cryptocurrency and blockchain, overall, also known as Web3, gave rise to many crypto-related companies with stocks that may be interesting to both traders and investors, alike.
Continue reading to discover the top 5 best Web3 stocks to watch and how to invest in web3, based on the author’s personal opinion and analysis.
Table of Contents
What are Web3 Stocks?
Web3 stocks are stocks in companies that involve themselves in the concept of Web3, also known as Web 3.0.
While the stocks themselves are not typically involved in the crypto or blockchain ecosystem, as stocks are publicly traded rather than via blockchain technologies, they help these Web3 companies facilitate the further development of Web3.
The overall appeal and goal of Web3 and hence Web3 stocks is to develop the third generation of the internet, where the sole purpose is for users to own the content they contribute to – and even earn income from such.
What is a Web3 Company?
A Web3 company is a corporate entity involved in the development of Web3, whether directly or indirectly.
Companies that catalogue and promote cryptocurrencies and blockchain overall, such as Coinbase Global Inc, can be said to be directly involved in Web3 spaces.
However, companies that make products that incidentally help facilitate the blockchain ecosystem, such as Nvidia Corp, could be called more indirect influences.
Either way, they are both considered Web3 stocks. For more information on these companies and their stocks, read on.
Should I Buy Web3 Stocks?
This type of question is always subjective depending on the individual.
If a person can handle how volatile Web3 stocks can be, they can potentially be a viable investment - however, they may not be the ideal investment for those without the ability to take a temporary financial hit.
This question is also very dependent on the individual’s risk management strategy and trading strategy, overall.
If you'd like to learn more about the financial markets and trading, you can attend our free webinars led by experienced traders by clicking the link below:
What are the Best Web3 Stocks to Watch?
Based on the above information, one would now have a decent understanding of the Web3 industry and what qualifies as potentially the best Web3 stocks to watch for now and in the future.
Below, we overview some of the potentially best Web3 stocks to watch, based on the opinions and analysis of the author.
Coinbase Global Inc, traded on NASDAQ as ‘COIN,’ is the leading figure in cryptocurrency platforms.
Coinbase is a cryptocurrency exchange, which means that it facilitates the transaction of cryptocurrencies between users.
- Coinbase accepts fiat currency, such as the US Dollar, so users can purchase crypto tokens. This accessibility gives Coinbase a stable user base.
- Coinbase has a venture capital division that has helped establish large names in the crypto environment.
- Stocks directly related to cryptocurrencies can be unstable, as the crypto market can be more volatile than traditional stocks.
- Coinbase’s stock is directly tied to the public perception of cryptocurrencies. With Web3 being controversial, its future is volatile at best.
Nvidia Corporation, trading as ‘NVDA,’ was a name to watch even before it got involved in blockchain and hence Web3.
Along with other technology companies, Nvidia designs and manufactures the technology that Web3 runs on, such as graphics cards.
Nvidia has also launched the Nvidia Omniverse, a platform designed to assist developers in their Web3 projects.
- An active interest in blockchain and crypto gives Nvidia the ability to grow with Web3.
- As blockchain, cryptocurrencies and Web3 environments gain more popularity, Nvidia’s products potentially become more valuable, which increases the company’s stock value.
- A direct tie-in to the blockchain and crypto market means that Nvidia stocks can decline abruptly and become incredibly volatile along with any other Web3 stocks.
- While Nvidia is primed as a Web3 company, it faces high rates of competition in its main industry - computer parts, most specifically, semiconductors.
See the below TradingView chart in order to view the Daily price trends:
Advanced Micro Devices Incorporated, publicly traded and commonly known as AMD, is a company similar to Nvidia.
As a manufacturer of computer parts, particularly graphics cards and other parts used in blockchain environments, consumers often regard AMD as Nvidia’s main competitor.
- SeekingAlpha estimates that Advanced Micro Devices will gain up to 25% of the server market share by the end of 2023.
- Advanced Micro Devices is an industry leader in computer technologies, making great strides in AI that it hopes to use to advance its technologies.
- With the PC market declining in 2022, this may affect the revenue and hence the share price of AMD in the near future.
- Nvidia is far from AMD’s only competitor- the computer manufacturing industry is growing along with the rest of the technology market.
IBM Corporation, trading as ‘IBM,’ has been in the computer business as long as computers have existed and have made some of the largest strides in the history of technology.
IBM’s advances in AI make it a significant influence on the Web3 market, and the company itself has plans for Web3 projects.
- IBM Corp is one of the oldest surviving names in technology, and even without Web3, it is a vital company to modern existence. Regardless of Web3’s status, IBM typically remains stable over the long term.
- As IBM technology advances, Web3 will follow suit - what is good for IBM will raise stock value across the board, generally speaking.
- IBM has shown a lack of revenue growth, with long periods of stagnant prices.
- In 2017, Warren Buffett sold most of his stock in IBM. With a significant figure in finance dumping his stock, investors may worry about the future of IBM throughout 2023.
Unity Software is a cross-platform game development company based out of California, USA; most notably, they are known for their proprietary licensed game engine, Unity.
The company facilitates a more democratic approach to the development of both 2D and 3D interactive content, with the aim to make it more accessible to the general public.
- According to Unity's income statement (Yahoo! Finance), the company has grown total revenue steadily from 2019 up until 2022.
- In 2023, management in Unity resolved ongoing issues with its advertising monetization tools (targeted at video game developers), which could help resolve ongoing issues with profitability.
- Since going public in 2020, Unity appears to be struggling to generate profits which naturally affects the stock price.
- Overall market instability in 2023 may affect the overall general attractiveness of the Unity stock, given their lack of profit as of yet.
How to Invest in Web3 Stocks
For those individuals who find the Web3 industry and hence Web3 stocks interesting, there are multiple ways to either trade or invest in Web3 companies.
Initially, any trader or investor must be aware of the risks associated with trading or investing in stocks; risk management should be the top priority.
If an individual feels confident in their trading and investing knowledge, it could be considered to also identify the trading strategies which may be applied when trading or investing in Web3 stocks.
At Admirals, it is possible to trade Contracts For Difference (CFDs) on various instruments, including stocks, using a Trade.MT5 account; please always consider that CFDs are highly risky.
We also offer the option to invest in stocks and ETFs directly with our Invest.MT5 account.
If you'd like to get started trading today, click the link below and register for our live account:
Best Web3 Stocks to Watch: Conclusion
Like any up-and-coming new industry and vertical, there is an equal amount of excitement along with risk.
It appears given recent trends that Web3 is here to stay, meaning the future of all companies involved may be volatile, as many new players will enter the space.
Is Web3 an industry worth trading and investing in? Are the potential best Web3 stocks worth buying (or selling)? Only each individual trader can answer such a query.
It can certainly be considered an exciting industry at the moment, considering it is slowly but surely impacting our daily lives in how we use technology.
How to invest in Web3?
The main avenues for how to invest in Web3 are as follows:
1. Buy digital assets such as cryptocurrencies and NFTs
2. Buy stocks directly in companies engaged with web3
3. Trade various stock and cryptocurrency CFDs via a reputable online broker
What companies are Web3?
A company considered to be Web3 would utilize directly or indirectly the various blockchain technologies and/or cryptocurrency and digital assets. A Web3 company would have some involvement in the overall development of Web3.0.
Can you buy shares in Web3?
Yes, absolutely - In order to buy shares in Web3, you would first need to be registered with a regulated broker, for which you can then search for Web3-related publicly traded corporate entities (such as CoinBase Inc). You would purchase in the same manner you would any traditional stock or share.
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