How to get started with Web3

Web3 is sometimes cited as one of the most exciting and transformative developments of the digital age. From decentralised finance (DeFi) and NFTs to smart contracts and decentralised autonomous organisations (DAOs), Web3 technologies are reshaping how we interact, transact and create value online. For beginners, the path into Web3 can feel overwhelming. This article is a step-by-step guide that will walk you through the essentials so you can safely and confidently explore what Web3 has to offer.

In this article, you’ll learn about:

• The building blocks of Web3

• How to set up a Web3 wallet securely

• How to buy your first crypto assets

• How to explore dApps and use them safely

We’ll also cover smart investing principles, common pitfalls and how to stay informed as the space evolves. If you're completely new, start with our articles on what Web3 is and how Web3 works.

1. Understand the basics of Web3  

To navigate the world of Web3 confidently, it helps to get your head around the building blocks of Web3 first:

• Blockchain: A distributed ledger system that records transactions across multiple computers. It's the foundation of Web3.

• Tokens: Digital assets that live on a blockchain. This can be currencies like Ethereum (ETH), or other assets and utilities.

• Wallets: These are tools to store your tokens securely, which can be custodial (managed by a third party) or non-custodial (you manage it yourself).

• DApps: Decentralised applications that run on blockchains and offer services like lending, trading, gaming and more.

• DeFi: A decentralised financial ecosystem offering alternatives to traditional banking services.

Spend time understanding these concepts. Web3 benefits those who build a solid foundation. Don’t rush in. Read our guides on common Web3 misconceptions and challenges, and discover how the internet evolved from the static Web to Web3.

2. Set up a Web3 wallet

Your wallet is your gateway to Web3. It lets you hold tokens, manage NFTs and connect with a wide range of DApps. Picking the right type of wallet is your first important decision:

• Non-custodial wallets: These give you full ownership of your keys and assets. They’re ideal if you want full control, but they also require full responsibility.

• Custodial wallets: Managed by a third party. Though these are often easier to use, you’re placing your trust in a platform.

• Web3 wallets: An evolving option that blends usability with safety. Features like transaction batching or social recovery make these an attractive middle ground.

When choosing a wallet, think about how hands-on you want to be and how much security you can manage. No matter the type, your seed phrase is key. This sequence of words is your only way to recover your wallet if you lose access. Write it down, store it offline, and never share it!

Want a simple and secure start? The Bitpanda DeFi Wallet lets you trade, earn and explore onchain – all in one place. Designed for beginners and advanced users alike, it's the ideal companion for your Web3 journey. Seamlessly integrated with your Bitpanda account, moving funds is quick and hassle-free. Plus, you'll earn rewards and airdrops just by using the wallet.

3. Buy your first crypto

To use Web3 services, you need blockchain-native tokens like ETH (Ethereum), POL (Polygon), or SOL (Solana). These are used to pay for transactions, known as gas fees. 

Gas fees are small payments made to compensate for the computational energy required to process and validate transactions, like sending tokens or swapping assets. Think of it as the blockchain’s version of a service fee. The amount varies depending on the network you’re using and how congested it is at the time. For example, Ethereum gas fees tend to rise when many users are trying to make transactions at once. Other networks like Polygon or Solana are known for lower and more stable fees, making them more beginner-friendly. When you're getting started, it's worth considering which network suits your budget and goals best. 

Once you’ve chosen a network, it’s time to get your first crypto. Here’s how to get started:

1. Open an account on a regulated platform like Bitpanda.

2. Complete identity verification (KYC).

3. Fund your account via bank transfer or card.

4. Buy your chosen crypto asset.

5. Transfer it to your Web3 wallet.

4. Explore DApps

Once you’ve got crypto in your wallet, it’s time to explore what Web3 has to offer. Here are a few examples:

• DeFi platforms like Aave let you lend or borrow crypto.

• NFT marketplaces like OpenSea let you buy, sell or trade digital art and collectibles.

• DAOs (Decentralised Autonomous Organisations) let you participate in community-led projects.

• Web3 games integrate crypto elements like token rewards and NFTs.

To use a DApp:

1. Visit the DApp website.

2. Connect your wallet.

3. Approve permissions and transactions.

4. Browse and discover. Whether you're curious about new tools, social platforms, or experimental projects, there's always something new to try. Don’t be afraid to click around (safely) and see what catches your interest!

Always be cautious: Check for verified links, suspicious permissions and whether the dApp is well-known. Never approve transactions you don’t understand.

5. Invest in Web3 projects cautiously

The Web3 space is full of exciting opportunities, but it also comes with its share of risks. If you're thinking about investing, it's important to approach the space with caution and a clear strategy. Here are a few principles to keep in mind:

• Start small: Only invest amounts you’re comfortable risking. The market can be volatile, especially in early-stage projects.

• Diversify: Spread your investments across different tokens, sectors and networks to reduce risk.

• Do your research: Look into a project's fundamentals – its tokenomics, team background, development activity and community sentiment all matter.

Before diving in, take the time to read whitepapers, follow official social channels and question the hype – especially around trending or “too-good-to-be-true” projects. Unfortunately, scams are still common in the crypto space, particularly in fast-moving areas. To help protect yourself, check out our guide on how to spot and avoid common crypto scams.

6. Stay safe and informed

Security in Web3 isn’t just about the technology, it’s also about habits:

• Keep your wallet software updated.

• Use a secure browser with privacy extensions.

• Avoid phishing attempts by checking URLs and never clicking on unknown links.

• Revoke dApp permissions regularly if you’re not using them.

And remember: Web3 evolves quickly. Staying informed is your best defence.

Conclusion: Your Web3 journey begins now

Web3 is a growing, dynamic space that rewards curiosity, caution and continuous learning. With a secure wallet, a bit of crypto, and some solid research, you’re well on your way.

Keep exploring, keep learning and remember that Bitpanda Academy is here to help. For the next step, check out our content on DeFi, NFTs and smart contracts. Or head over to Bitpanda Web3 and start your journey onchain.