9 Ways to Profit in Web3: Investing, Gaming, dApps & NFTs

Disclaimer: This article provides analysis based on expert opinions, current market insights, and historical trends. We do not offer financial advice; please conduct your own research before making any investing decisions.

The next generation of the Internet, known as Web3, enables users to engage in a new digital economy based on decentralized ownership and distribution of information, blockchain technologies, and tokens used as a medium of exchange or store of value.

Web3 applications provide a variety of opportunities for new and seasoned investors to profit from the Web3 ecosystem, from cryptocurrency trading to blockchain gaming.

As these platforms evolve, individuals will be able to take more control over how their identity and personal data are used. They will be able to make money from such information, rather than the centralized entities that are largely in control of Web2.

In this article, we explore how to make money with Web3 and look at how the ecosystem is developing.

Key Takeaways

Web3 is characterized by decentralization, which gives users more control over their data and transactions and allows them to earn money directly.
Web3 technology offers diverse new income streams, from passive income from cryptocurrency staking to direct revenue generation from content creation.
Participating in Web3 can be profitable for users, developers, content creators, investors, and employees in startups or agencies.
Buying cryptocurrencies or NFTs and selling them at higher prices is one of the most straightforward ways to profit from Web3.
Web3 is still emerging and vulnerable to security and scalability challenges, so careful research is essential to minimize risk.

Table of Contents Table of Contents

Key Takeaways
Nine Ways to Profit in Web3
The Bottom Line: Is It Worth Getting into Web3?
FAQs
References

Table of Contents

Key Takeaways
Nine Ways to Profit in Web3
The Bottom Line: Is It Worth Getting into Web3?

Show Full Guide

FAQs
References

Nine Ways to Profit in Web3

1. Invest in Cryptocurrencies

A digital form of money, cryptocurrency coins and tokens are at the heart of the next-generation Internet and among the best ways to make money in Web3.

Cryptocurrencies are not only used to pay for products and services in Web3, but their ongoing price volatility means that investing, trading, staking or yield farming can be highly profitable—albeit risky.

2. Create or Use Decentralized Apps

Decentralized applications (dApps) leverage smart contracts that run on blockchain infrastructure and facilitate the delivery of Web3 services.

There is potential to profit from both developing and using dApps.

By developing and launching a dApp, you can generate profits by charging users for its features and services and/or running paid advertisements. You will need to consider the cost of developing the app and platform fees, such as transaction fees.

Using dApps, particularly those associated with decentralized finance (DeFi) platforms, can generate profits. DeFi enables users to earn interest, lend, and borrow directly without intermediaries, particularly by providing liquidity to DeFi platforms such as Aave, MakerDAO, Uniswap, PancakeSwap, and SushiSwap.

You can also participate in Decentralized Physical Infrastructure Networks (DePINs) like Filecoin, Helium Network, Hivemapper, and Render Network to build and manage physical infrastructure in exchange for DePIN crypto coins.

It is important to be aware of the risks associated with dApps.

Smart contract vulnerabilities can cause issues with apps and attract hackers. In addition, some dApps may be fraudulent, emphasizing the importance of conducting research to ensure apps are legitimate before you start using them.

3. Sell or Trade NFTs

For traders and investors interested in profiting from Web3, non-fungible tokens (NFTs) are a key element with the potential to earn large gains. NFTs are digital tokens stored on blockchains that represent digital or real-world assets, from images and music to fine art and real estate.

You can create NFTs and sell them for a profit on specialist marketplaces like OpenSea or Rarible or in decentralized communities, and depending on the type of content, can set up royalties to receive a percentage of the income from subsequent sales.

This means that NFTs can potentially create new revenue streams for artists, musicians, and other content creators by selling directly to fans and collectors.

As with cryptocurrencies, you can buy NFTs that you expect to appreciate in value and sell them for a profit as demand for unique digital assets rises. Especially rare or collectible NFTs in certain niches can attract higher prices. For example, one of the earliest collections of digital art NFTs, called CryptoPunks, continues to attract millions of dollars in sales.

While the initial hype around NFTs has cooled off, the benefits of tokenized ownership still make them an attractive tool in the Web3 ecosystem.

4. Participate in Blockchain Gaming

Just as Web2 revolutionized online gameplay, gaming is one of the applications that could benefit the most from incorporating Web3 technology, such as blockchain processing, NFTs, and metaverse environments.

The ownership and interoperability of digital assets, token-based rewards, and decentralized content creation can bring a new level of interactivity to gaming.

Play-to-earn, move-to-earn, watch-to-earn, and learn-to-earn games offer innovative opportunities to generate profits.

Players can earn real-world rewards for their time and gaming skills by collecting characters, weapons, and other items in the form of NFTs and cryptocurrencies that they can trade or sell for profit.

Popular examples of play-to-earn blockchain games include Axie Infinity, The Sandbox, and Decentraland.

This provides an innovative way to make money while enjoying immersive gameplay.

Game developers can also earn money from Web3 gaming, as decentralized distribution allows them to create games and profit from advertising as well as in-game purchases.

The most entertaining and engaging games attract more players, increasing the potential to generate substantial revenue streams.

5. Create or Stream Content

The decentralization of the Internet offers new opportunities for individuals to profit from content creation or delivery, rather than large corporations alone.

You can opt to develop a Web3 streaming platform that charges fees for streaming music and videos, advertising, partnerships, and premium content subscriptions.

Like NFT marketplaces, these community-owned platforms can democratize the distribution of art, allowing artists to make money from their creations directly.

Web 3 platforms also create new opportunities for other types of content creators to monetize their work. Any user can write blog posts, articles, white papers, and other published content, create reels, shorts, or longer-form videos, or launch podcasts.

You can earn Web3 crypto tokens or fiat currency by publishing content on decentralized blockchain-based social media platforms that reward users with crypto coins or tokens based on the popularity of their content.

Alternatively, you can profit from creating content for Web3 blockchain projects to help them raise awareness.

6. Become Active in the Metaverse

Metaverse—the concept of virtual 3D worlds in which users can interact using avatars—offers various possibilities for how to profit in Web3. These include:

Buying and selling virtual assets such as real estate and items.
Renting out virtual spaces for events, workplaces, and showrooms.
Trading metaverse NFTs.
Promoting products and services through advertisements, marketing campaigns, and sponsorships in virtual spaces.
Developing or playing games in the metaverse to earn revenue or rewards.

The most expensive sales of land NFTs in the metaverse, representing virtual plots of land, ranged from $1 million to $4 million in 2021 and 2022, data from DappRadar shows.

7. Create or Join a Web3 Agency

Web3 agencies are emerging to provide blockchain-based solutions to businesses, entrepreneurs, and startups, helping them to navigate challenges in the transition from Web2 to Web3, such as data privacy, security, and scalability.

You can generate profits by launching your own agency to sell custom solutions or consulting services that meet clients’ needs.

Alternatively, you can join or partner with an existing agency and receive payment in crypto or fiat currency for your expertise in Web3 trends such as NFTs, DeFi, and the metaverse.

8. Develop or Invest in Web3 Startups

In addition to developing dApps or starting your own blockchain project, you can potentially generate substantial profits by investing in innovative Web3 startups. By acquiring a share of ownership in a startup, you can receive high returns if it becomes successful—from the revenues it generates or from selling your stake.

This approach does require you to have access to capital to make the investment and awareness of the risk that your investment could lose value if the project is not as successful as expected or market conditions become unfavorable.

9. Participate in a Decentralized Autonomous Organization (DAO)

Decentralized Autonomous Organizations (DAOs) are community-based groups that manage the development of Web3 projects such as cryptocurrency tokens or NFTs.

DAOs facilitate project development and governance without centralized leadership, by using smart contracts on the host blockchain to create rules. Members hold the project’s governance token, which gives them the right to vote on decisions and influence the project’s future direction.

Examples of DAOs include Aave DAO, BitDAO, MakerDAO, and Uniswap.

As a DAO member, you can help to allocate shared resources or investments and contribute skills. Active community members can earn rewards for their involvement in the form of coins or tokens, which are likely to gain value and increase profits as the project becomes more successful.

The Bottom Line: Is It Worth Getting into Web3?

Web3 represents the transition from the current form of the Internet to a decentralized, blockchain-based web that presents users with new opportunities to profit from their participation and investment.

From cryptocurrencies to DeFi to the metaverse, Web3 is evolving in ways that can allow you to earn money from trading, investment, content creation, gaming, and more. These offer the potential to make substantial profits for those willing to learn and take calculated risks. By exploring the top nine ways to profit in Web3, you can benefit from participation in the decentralized economy.

However, it is crucial to ensure you stay well-informed to maximize your profits and avoid falling victim to projects that are fraudulent or unsustainable. You should always do your own research and never invest money you cannot afford to lose.