Technology constantly advances and, as such, so changes the ways people utilise the internet and the constant new associated devices. Web3 refers to the third generation of web technologies that allows users to read, write, own and produce content using the Blockchain.
The internet has revolutionized the purchase and sale of stocks and facilitated the rise of cryptocurrency and NFTs – digital entities you can purchase and sell like traditional stocks or virtual items.
The overall environment around cryptocurrency and blockchain, also known as Web3, gave rise to many crypto-related companies with stocks that may be interesting to traders and investors alike.
Continue reading to discover the top 5 best Web3 stocks to invest in 2022.
Table of Contents
What is a Web3 Stock?
Web 3.0 Stocks are shares in publicly traded companies currently working within the Web3 space. This includes cryptocurrency companies and other tech-based companies, such as Unity Software and NVIDIA, to name a few.
Web3 Stocks provide returns in two possible ways, i.e., an appreciation in stock price or a dividend. Not all stocks pay dividends, so it is essential to diversify your investment portfolio to reduce risk.
Should the investment be made in Web3 Stocks in 2022?
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.
Top 5 Web3 Stocks to Invest
Advanced Micro Devices (AMD)
Widely known for its graphics and central processing units, Advanced Micro Devices (AMD) is looking to tap into the exciting world of Artificial Intelligence (AI). With their prior experience in designing semiconductors, their team is now working on developing state-of-the-art graphics chips for Web3 applications.
AMD acquired Xilinx (XLNX) in 2020, thus adding significant AI capabilities to their team. With this strategic acquisition, AMD is poised to cement a foothold in the Web3 space, making this a very lucrative Web3 stock option for investors.
Coinbase (COIN)
Coinbase Global is a world-renowned cryptocurrency exchange that has over 103 million users. They have also released an NFT-based platform that allows users to buy and sell digital assets. This trusted centralized exchange would enable investors to perform digital transactions.
Using Coinbase’s decentralized (dapp) browser and wallets, users can access Web3 applications and much more!
This Web3 stock is sought after by many investors due to the company’s pivotal role in facilitating digital transactions on the internet.
Coinbase digital application supports the famous Blockchain network Solana (SOL) and other tokens. This allows users to store Solana alongside other tokens such as Avalanche, Ethereum, Polygon, and more. This reduces the need for users to have different wallets and facilitates transactions within the Web3 space.
Twitter (TWTR)
Twitter is one of the top social media sites in the world.
In early 2022, Twitter began allowing users to upload NFTs as profile photos, marking the company’s first official foray into Web3.
Recently, Twitter has been growing its presence within the Web3 space. There are over 227 million active users on the platform.
The platform has generated over $5.229B in revenue in 2021, with an overall 17.45% increase in yearly earnings. The company also introduced a state-of-the-art ‘tipping‘ functionality where users can tip their favorite content creators in Bitcoin.
Twitter Blue subscribers can display their NFTs (verified ownership) on their profiles. This made many NFT fans happy as they could showcase their collections on their Twitter social media profile!
NVIDIA
When it comes to semiconductor design, NVIDIA is a household name. As the popularity of Web3 has grown, so has NVIDIA’s interest in developing software for the emerging decentralized internet.
NVIDIA’s gaming processors have been quite successful in recent years. Numerous miners rely on NVIDIA processors to carry out essential Blockchain-related operations. NVIDIA has built the “Omniverse” as a gateway into the Web3 era.
Developers working in Web3 may use the Omniverse to create and cooperate on massive systems for the Metaverse. Instantaneously building and inspecting simulations, as well as supplying predesigned templates, might boost development efficiency.
Large corporations like Siemens and others are experimenting with the concept of a “digital twin” in various fields. Using the Omniverse, businesses have built simulations that are near-perfect copies of the actual world. AI allows these businesses to conduct their research and other activities at lightning speed.
Additionally, the NVIDIA team is working on deep learning systems that use neural networks to perform various tasks, including language translation, speech recognition, object identification, and more.
Unity Software (U)
This firm is behind a powerful engine that allows developers from all walks of life to create innovative gaming titles. This is most definitely relevant to the future of Web3, as decentralized gaming is expected to grow exponentially.
Unity Software offers a holistic solution to create 3D experiences, digital assets, and more. This company is behind numerous video games such as Beat Saber, Fall Guys, and many more. The company provides solutions for augmented PCs, mobile phones, reality devices, etc.
Unity Software will play a significant role in helping developers create different experiences for users online. This one should be on your radar if you’re looking for a reliable Web3 stock with considerable potential.
Read more about: 5 Best Web3 Stocks To Invest in 2022
Conclusion
It is important to remember that investing in Web3 Stocks is a long-term commitment. The companies mentioned in these articles have succeeded in their current projects and have obtained a large customer base. They have gained a lot of traction and have shown promise in the past.
However, customer base and initial traction are not the only variables regarding Web3 stocks. The prices can be changed based on several factors, so it is recommended to diversify your portfolio and do your due diligence before investing.
