What is Web3?
Web3 (AKA Web 3.0) or the decentralized Web is the next evolution of the Internet that focuses on decentralized applications and services that can operate independently of central servers or intermediaries. This term is used to describe the next phase of the Internet, in which power shifts from a few centralized entities to decentralized networks of peers powered by blockchain technology, and users are in control of the data.
Web3 technology builds on decentralized systems such as the blockchain and enables the creation and use of decentralized applications, smart contracts, and decentralized financial systems (DeFi). The goal of Web3 is to create a more secure, private, and decentralized Internet where users have control over their data and can conduct peer-to-peer transactions without intermediaries. Popular Web3 platforms include Ethereum, Polkadot, and Solana.
In this article, we’ll go through the top 10 Web 3 income streams, tell you how to invest money in web3, and how you can make some extra money through Web3. We strongly advise that if this is one of the first articles you have read about these topics, to do further research. You can find more resources via our site and also on the internet.
You may also like: A Beginner’s Guide to Web 3.0
Understanding the opportunities to generate Web 3 income streams
We’re experiencing a big transition into Web3 and the exciting part about this is that we’re still super early. You can make money in the Web 3 world by either investing in it or creating something in it.
The first step in generating Web 3 income streams is understanding what it is and how it functions. Active vs. passive investments play an essential role in the investment process. Active investing is where the investor takes charge, deciding which specific investments to make. This requires more time and effort and a greater understanding of the underlying asset. Passive investing, on the other hand, is where the investor takes a more hands-off approach, investing in a basket of assets. The expectation is that these assets would provide a return on investment without much work. This type of investing could be more straightforward and might require less time and effort. It might be a good idea to keep both options open when it comes to Web 3. The key is understanding the difference and making an informed decision about what type of investor you want to become.
Ways to make money on Web 3
1. With Airdrops
Airdrops are a popular way for blockchain projects to distribute their tokens or cryptocurrencies to a wide audience. It is often done as a way to promote their project or gain traction in the market. Here are some steps to potentially make money with web3 airdrops:
Keep an eye out for new airdrops: Airdrops are often announced on social media, cryptocurrency forums, and other online communities. Stay up to date with the latest news and announcements from blockchain projects to be aware of any upcoming airdrops.
Participate in airdrops: To participate in an airdrop, you typically need to complete a few tasks such as following the project on social media, joining their Telegram group, or referring other users to the project. Make sure to carefully read the instructions and complete all the necessary steps to be eligible for the airdrop.
Hold onto the airdropped tokens: Once you receive the airdropped tokens, they are yours to keep. Now you wait for their value to increase and look for an opportunity to make some money by selling them. However, keep in mind that the value of tokens can be volatile and unpredictable. It is important to do your own research and make informed decisions.
Sell the airdropped tokens: If you need to liquidate your tokens quickly, you can sell them on cryptocurrency exchanges that support the token. However, be aware that selling large amounts of tokens at once can have an impact on the price. So it may be more advantageous to sell gradually over time.
It is important to note that not all airdrops are legitimate, and some may be scams or fraudulent. Always do your own research and exercise caution when participating in airdrops. While it is possible to generate income streams through airdrops, it is important to approach them with caution and do your own research before participating.
2. Gaming / Play to Earn Model
The play-to-earn model is a new concept in the Web3 or blockchain gaming industry. It is a gaming model where players can earn cryptocurrencies or digital assets while playing games.
In traditional gaming models, players pay to play games, and the game developer earns revenue through in-game purchases and advertisements. However, in the play-to-earn model, players can earn rewards in the form of cryptocurrency or digital assets for their in-game achievements or contributions. These rewards can then be exchanged for other cryptocurrencies, fiat currency, or used to purchase in-game items. This model not only incentivizes players to engage more deeply with the game but also creates a new source of income for players.
Play-to-earn games are often built on blockchain technology, which allows for secure ownership and transfer of digital assets. The blockchain also enables game developers to create unique, non-fungible tokens (NFTs) that represent in-game items, characters, or achievements. These NFTs can be bought, sold, or traded among players.
The play-to-earn model has the potential to disrupt the traditional gaming industry by enabling players to earn income while playing games and creating a more equitable and inclusive gaming economy. Some popular play-to-earn games in the Web3 space include Axie Infinity, The Sandbox, and Gods Unchained.
3. Create a personalized currency
Creating personalized currency or tokens in the Web3 space can be a way to potentially earn money, but it requires careful planning and execution. Here are some ways to earn money by creating personalized currency in Web3:
Initial Coin Offering (ICO): An ICO is a fundraising method where a new cryptocurrency or token is offered to the public for the first time. As the creator of the personalized currency, you can hold an ICO and offer your tokens for sale to investors who believe in the value and potential of your project.
Tokenization of Assets: Personalized tokens can be used to represent real-world assets such as property, art, and other valuable items. By tokenizing assets and creating a marketplace for trading these tokens, you can earn revenue through transaction fees or by taking a percentage of the sale.
Staking and Yield Farming: By creating a personalized currency that is used for staking or yield farming, users can earn rewards for holding or staking your token. You can earn revenue by taking a percentage of these rewards or through transaction fees.
Governance: Personalized tokens can be used for governance and decision-making within a decentralized organization or community. By holding a percentage of the tokens, you can earn revenue through decision-making or by offering governance services to other organizations.
In-App Purchases: If you are creating a personalized currency for a specific application or platform, you can generate revenue by allowing users to purchase your token within the app or platform.
It is important to note that creating a personalized currency requires a solid understanding of blockchain technology, smart contract development, and marketing. It is also essential to comply with regulatory requirements in your jurisdiction to avoid legal issues. Therefore, it is recommended to seek professional advice and conduct thorough research before launching a personalized currency project in Web3.
4. Web3 Advertising
Web3 is still in its early stages, and the advertising industry in this space is still evolving. However, there are some ways to potentially earn money with advertising in Web3. Here are some options:
NFT Advertising: Non-Fungible Tokens (NFTs) are unique digital assets that are used to represent ownership of a specific digital asset. NFTs can be used for advertising by creating unique, collectible NFTs that represent a brand or product. Brands can use these NFTs to promote their products or services and offer them as rewards for engaged users.
Decentralized Advertising Networks: Decentralized advertising networks allow brands and advertisers to reach a targeted audience without relying on centralized platforms like Google or Facebook. This means that advertisers can save sizable money on transaction fees and other expenses around running an ad campaign. These networks use blockchain technology to ensure transparency and accountability in the advertising process. Advertisers can earn revenue by offering their advertising services on these networks.
Microtransactions: Web3 enables microtransactions, which allows users to earn small amounts of cryptocurrency for their attention and engagement with content. Advertisers can offer microtransactions as a way to incentivize users to engage with their content.
Sponsored Content: Brands and advertisers can sponsor content in Web3 platforms and communities. By sponsoring content, they can gain exposure and reach a targeted audience. Content creators can earn revenue through sponsored content by providing valuable content that resonates with their audience.
Affiliate Marketing: Affiliate marketing is a type of marketing where an advertiser pays a commission to an affiliate for promoting their products or services. In Web3, advertisers can use affiliate marketing to promote their products or services through a decentralized network of affiliates. Affiliates can earn revenue by promoting the advertiser’s products or services to their audience.
Note: Web3 space is still evolving, and the advertising models that work in web2 platforms may not work in Web3. Therefore, it’s important to keep up with the latest trends and developments in Web3 advertising and experiment with different models to find what works best for your business.
5. Crypto mining
Crypto mining is the process of verifying transactions on a blockchain network and adding them to the public ledger. By doing so, miners earn cryptocurrency rewards for their efforts. Crypto mining in Web3 is similar to traditional crypto mining, but it involves mining cryptocurrencies that are built on Web3 technologies. This includes blockchain-based applications, decentralized finance (DeFi) protocols, and non-fungible tokens (NFTs). Here are some ways to potentially earn money with crypto mining in Web3:
Decentralized Mining Pools: Decentralized mining pools allow users to mine cryptocurrencies and earn rewards while contributing to the decentralization of the network. These pools use Web3 technologies to ensure transparency, security, and accountability in the mining process. Examples of decentralized mining pools include Swarm, Web3Pool, and Flux.
DeFi Mining: Some DeFi protocols allow users to earn rewards by providing liquidity to the protocol or by staking their cryptocurrency in the protocol. Users can earn interest or fees in the form of the cryptocurrency being used in the protocol. Examples of DeFi protocols that offer mining opportunities include Compound, Aave, and Uniswap.
NFT Mining: NFTs are unique digital assets that are built on blockchain technology. Some NFT platforms allow users to mine NFTs by providing computing power to the network. Users can earn rewards in the form of NFTs, which can be sold on marketplaces or used for in-game items or virtual assets. Examples of NFT platforms that offer mining opportunities include Rarible and Nifty Gateway.
Cloud Mining: Cloud mining services are also available for Web3 cryptocurrencies. These services allow users to rent mining hardware and processing power from a third-party provider. Cloud mining can be an easier and more cost-effective way to mine Web3 cryptocurrencies. But users should do their research and consider the risks before investing.
It’s important to note that the profitability of crypto mining in Web3 can be impacted by factors such as the price of the cryptocurrency, network difficulty, and electricity costs. Therefore, it’s essential to conduct thorough research and consider the risks before investing in mining.
6. Crypto Lending Platforms
Crypto lending platforms allow users to earn interest on their cryptocurrency holdings by lending them to other users or borrowers on the platform. Here are some ways to potentially earn money from crypto lending platforms in Web3:
Lending: One way to earn money from crypto lending platforms is by lending your cryptocurrency to borrowers on the platform. You can earn interest on your loaned cryptocurrency, which can be paid out in the form of the cryptocurrency you lent or in stablecoins. Examples of crypto lending platforms that offer lending services include Aave, Compound, and Celsius.
Borrowing: Another way to earn money from crypto lending platforms is by borrowing cryptocurrency and using it to invest or trade. You can earn profits if the price of the cryptocurrency you invest in or trade increases, which can help you pay off the loan and earn additional profits. However, it’s important to note that borrowing cryptocurrency involves risk and should be done with caution.
Liquidity Provision: Some crypto lending platforms allow users to earn interest by providing liquidity to the platform. Users can provide both cryptocurrency and stablecoins to the platform, which can be used to fund loans to borrowers. In return, users can earn interest on their deposited funds. Examples of platforms that offer liquidity provision include Aave and Compound.
Staking: Some crypto lending platforms allow users to stake their cryptocurrency holdings in order to earn interest. Users can stake their cryptocurrency to secure the network or to support the platform’s governance. In return, they can earn interest on their staked cryptocurrency. Examples of platforms that offer staking include MakerDAO and Compound.
Note: crypto lending platforms involve risk, and users should do their research and consider the risks before investing. Factors that can impact the profitability of crypto lending include the interest rate offered by the platform, the liquidity of the market, and the volatility of the cryptocurrency market.
There are various ways to earn money from cryptocurrencies in Web3, including:
Trading: One way to earn money from cryptocurrencies is by trading them. You can buy low and sell high, or engage in short selling or margin trading to take advantage of market fluctuations. However, trading involves risk, and it’s important to do your research and understand the market before investing.
Mining: Crypto mining involves using computational power to validate transactions on the blockchain network and earn rewards in the form of cryptocurrency. There are various ways to mine cryptocurrencies, including proof-of-work (PoW), proof-of-stake (PoS), and mining pools. However, mining can require significant computational power and energy costs, and it may not be profitable for individual miners.
Staking: Staking involves holding a certain amount of cryptocurrency in a wallet or on a platform and earning rewards for securing the network or supporting the platform’s governance. Staking can be an easy and relatively low-risk way to earn money from cryptocurrencies. But it’s important to understand the rules and requirements of each platform.
Lending and Borrowing: Crypto lending platforms allow users to lend and borrow cryptocurrencies and earn interest on their holdings. Users can earn interest by lending their cryptocurrency to borrowers, or they can earn interest by depositing their cryptocurrency on the platform. However, lending and borrowing involve risk, and it’s important to do your research and consider the risks before investing.
Participating in Decentralized Applications (dApps): Decentralized applications built on blockchain technology, such as decentralized exchanges (DEXs) and gaming platforms, can offer opportunities to earn cryptocurrency by providing liquidity, staking tokens, or participating in gaming activities. However, it’s important to understand the rules and risks of each dApp before participating.
It’s important to note that cryptocurrencies are highly volatile and can be risky investments. It’s important to do your research, understand the risks involved, and invest only what you can afford to lose.
8. With virtual products such as NFTs
NFTs (Non-Fungible Tokens) are unique digital assets that can represent a wide range of items, such as art, music, video game items, and collectibles. Here are some ways to potentially earn money with NFTs in Web3:
Creating and Selling NFTs: You can create and sell your own NFTs on various platforms, such as OpenSea, SuperRare, and Rarible. This allows you to earn money from the sale of your NFTs and any subsequent sales or royalties if your NFTs are resold. You can create NFTs for digital art, music, collectibles, and other digital assets.
Investing in NFTs: You can also earn money by investing in NFTs. As with any investment, it’s important to do your research and understand the market before investing. Some NFTs have sold for millions of dollars, but the value of NFTs can be highly volatile.
Staking NFTs: Some NFT projects allow users to stake their NFTs in order to earn rewards. For example, staking an NFT in a gaming project may allow you to earn in-game rewards or tokens. However, it’s important to understand the risks and rewards of staking before investing.
Participating in NFT-Related Activities: Some NFT-related activities, such as participating in auctions or completing tasks related to NFT projects, can offer opportunities to earn cryptocurrency or NFT rewards. However, it’s important to understand the rules and risks of each activity before participating.
Note: NFTs are a new and rapidly evolving market, and the value and potential for earnings can be highly unpredictable. It’s important to do your research, understand the risks involved, and invest only what you can afford to lose.
9. E-commerce in the Metaverse
The metaverse is a virtual reality space that allows users to interact with each other and digital objects in a virtual world. Here are some ways to potentially earn money with the metaverse in Web3:
Creating and Selling Virtual Real Estate: In the metaverse, virtual real estate can represent digital spaces for businesses, communities, and events. You can purchase virtual land in various metaverse platforms, such as Decentraland and The Sandbox, and create and sell virtual real estate to other users. This can provide an opportunity to earn money from the sale of virtual land and any subsequent transactions.
Creating and Selling Digital Assets: You can also create and sell digital assets, such as virtual clothing, furniture, and accessories, in the metaverse. Some metaverse platforms have their own marketplaces for buying and selling digital assets. This can provide an opportunity to earn money from the sale of digital assets and any subsequent transactions.
Participating in Decentralized Applications (dApps): Decentralized applications built in the metaverse, such as gaming platforms and social media apps, can offer opportunities to earn cryptocurrency by providing liquidity, staking tokens, or participating in gaming activities. However, it’s important to understand the rules and risks of each dApp before participating.
Investing in Metaverse Projects: You can also earn money by investing in metaverse projects. As with any investment, it’s important to do your research and understand the market before investing. Some metaverse projects have raised millions of dollars in funding and may offer opportunities for financial return.
It’s important to note that the metaverse is a rapidly evolving space and the value and potential for earnings can be highly unpredictable. It’s important to do your research, understand the risks involved, and invest only what you can afford to lose.
10. Content creating/ Blogging
Last but not the least, if you are more of a creative individual, you can also make use of Web3 and earn some money by writing about Web3. There are many websites writers can post their work to as guest posts or as freelancers.
Please note that if you are going to create content on Web3 like blogs, TikTok/Youtube videos, etc. it is advised to have a good understanding of the concepts before doing so. Content must provide factual knowledge otherwise you may get a bad reputation and low engagement.
Messaging organizations directly is another great way to have your work published/noticed. LinkedIn and Twitter have proven useful platforms to do so. Be sure to also check out Medium, the article-publishing social media site.
Web 3.0 is the next evolution of the internet, and it’s already starting to take shape. With the help of blockchain, virtual reality, and machine learning, we can create a more decentralized and efficient internet. If you’re thinking about investing in Web3, then now is the time to do your research and get involved. The emerging opportunities are unlike anything we’ve seen before, and they will only get better from here.
We hope that now you have a better understanding of the revenue streams of Web3. Hope you found this article informative and that the information featured can direct you in the right direction!