Web 3.0 Cryptocurrencies: Going Beyond Bitcoin and Ethereum
Bitcoin and Ethereum are two of the most well-known pillars of the Web 3.0 cryptocurrency landscape. But with new cryptocurrency trends in 2023 and the ever-volatile crypto market, it’s not wise to just invest in Bitcoin and Ethereum alone. There are lots of alternatives to both these platforms that you can use to diversify your crypto portfolio.
Read more about these alternatives and why you should embrace the future of decentralised finance.
Why should I diversify my crypto portfolio?
Diversification is the process of spreading investments on various assets to protect yourself from financial risk. Because the crypto landscape is unpredictable and new cryptocurrency trends in 2023 are popping up, it’s highly recommended to go beyond just Bitcoin and Ethereum when investing on Web 3.0 crypto projects.
The evolution of blockchain technology means various innovations such as decentralised finance and non-fungible tokens are teeming with potential. To put all your eggs in one Bitcoin and Ethereum basket isn’t just risky, it also fails to maximise the gains you could be getting from these cryptocurrency innovations.
For this reason, it’s time to look for alternatives to Bitcoin and Ethereum that you can invest in.
Web 3.0 altcoins
Web 3.0 altcoins refer to any alternate Web 3.0 cryptocurrency that’s not Bitcoin, and in some cases, also not Ethereum. Investing in altcoins is recommended because of their improvements on original cryptocurrencies since they’re derived from existing Web 3.0 cryptocurrency. There’s also lots of different altcoins to choose from that function differently compared to each other, further diversifying your investments. Here are some of the best coins to invest in this year as per Techopedia:
AiDoge takes advantage of popular meme content via a meme generation tool that makes use of the blockchain and artificial intelligence. These can then be minted as non-fungible tokens (NFTs) and be sold for profit especially when the meme goes viral – as they often do. $AI tokens are the cryptocurrency that powers this coin.
A key critique of crypto is its negative effects on the environment. With Ecoterra, this altcoin addresses the need for green investments via a recycle-to-earn platform. Through this model, you can be rewarded with ECOTERRA tokens by scanning and depositing different kinds of recyclables.
With the COVID pandemic prompting professionals to earn through freelance work, DeeLance aims to make things easier. It provides a decentralised freelancing platform where aspiring workers and recruiters can work together transparently. DeeLance is powered by DLANCE tokens.
That being said, it’s important to note that Web 3.0 altcoins can have a smaller and less liquid investment market compared to Bitcoin. It’s important to assess each altcoin and weigh the risks and rewards before committing to them fully.
Alternative blockchain networks
While Bitcoin and Ethereum have similar characteristics, the latter is more of a network for smart contracts and decentralised application (dApps). Though it’s still one of the top blockchain networks for such transactions, the evolution of blockchain technology has paved the way for some good alternatives to Ethereum.
Solana is a blockchain system that makes use of smart contracts and focuses on decentralised finance and dApps. Through a combination of the sustainable proof-of-stake mechanism as well as the proof-of-history method, transactions in Solana are meant to be safe and quick.
NEAR is a blockchain system focused on smart contracts as well as the creation of scalable dApps. It employs various blockchain technologies to enable users in creating NFTs and assets as well as processing transactions quickly and securely.
Boasting 6,500 transactions per second, Avalanche is another contender to look out for. It can create multiple sidechains, which are instrumental in scaling and expanding the coverage of the blockchain. It also helps users manage various Web 3.0 crypto projects seamlessly through its interoperability.
Bitcoin and Ethereum may still be the leaders of the crypto world, but taking advantage of the continuous blockchain technology evolution can help you discover new methods of investment. Broaden your horizons and look for alternatives so you can shield yourself from the ever-fluctuating crypto landscape and come out on top.
Using a secondary wallet as a Metamask security measure
It is becoming increasingly difficult to tell legitimate websites from fraudulent ones, so it’s a good idea to use a clean wallet for minting anything you’re not 100% sure is safe or legitimate. In doing this, you can keep your main wallet completely separate and secure your crypto wallets against any risks that may compromise your crypto assets. In the event of a website compromising your wallet, knowing how to disconnect a Metamask wallet from a website can do wonders to your Metamask security measures.
Protecting your Web3 digital wallet through careful community interactions
Discord has become the choice digital distribution and communication platform for Web3 groups as it offers features and flexibility which are ideal for any Web3 project. However, the nature of Discord also makes it a common ground for crypto scammers to target unsuspecting victims and to compromise Metamask security.
A common crypto scam on Discord takes advantage of people who have a fear of missing out (FOMO). Scammers will DM users with malicious links which look somewhat legitimate, offering eye-catching incentives such as the opportunity to win a free BAYC (Bored Ape Yacht Club). Skilled scammers make these offers look legitimate, and each time they circulate, there’s almost always someone bound to click the link.
The best practice on Discord on how to secure your Metamask wallet is to disable direct messages from all members when you join a server – this will prevent any type of spam and secure your crypto wallets.
You can do this by going to; User Settings -> Privacy Settings -> Disable “Allow direct messages from server members.”
Watching out for fake accounts
Social engineering is becoming increasingly common on Discord with fake accounts impersonating projects and notable figures in the space. Some of the most common types of this are:
- Fake accounts pretending to be moderators or project leads. These accounts contact users about opportunities to get access to a “Free NFT” or “Stealth Mint” which usually involves some sort of link – which you should never click on!
- Fake Accounts pretending to be a bot related to a project asking users to “verify” themselves through a link, typically impersonating Discord resident bot, Collab.Land.
- Fake Account contacting users about certain projects that have started minting and inviting users to join through a “special link”.
These types of fake accounts are very common and if you’ve been involved in Web3 for a while. More often than not you would have experienced most of these crypto scams. The good news is, there are ways to distinguish a fake account from a real account so you can keep your Web3 digital wallet safe.
The most prominent way on how to secure your Metamask wallet is to always communicate through the server. This way, you can confirm that you are talking to the real account as you can check which roles they hold within the server. Another easy way to confirm if you are dealing with a fake account, especially with Collab.Land, is to check for verification.
As Collab.Land is a verified bot within Discord, you can notice almost immediately that the 4 unique digits on the fake account are different to that of the official account. Additionally, Collab.Land has a verified bot badge which makes the distinction between accounts clear.
Looking out for crypto scam giveaways
Discord hacks have become increasingly common over the past year, with projects being hacked on a daily basis. To help avoid these crypto scams and secure your Web3 digital and crypto wallets, there are some key red flags to watch out for in any project.
If a project suddenly sends an unscheduled announcement that they’re minting now with access via a link, it is often easy to fall victim to FOMO. However, most projects will always give you a mint date well before it actually launches, so a sudden announcement is usually a big warning. It is much safer to hold out and wait before taking any action when it comes to these sudden announcements – never jump the gun!
At the end of the day, Web3 is all about community, so it’s always a good idea to reach out to members in a server if you receive a malicious DM or you are unsure of something. Members with a moderator role or owner role within a server are incredibly trustworthy and will be able to give you the right advice regarding Metamask security in these situations.