I had to delete my previous post because I found an error in it, but I think the argument can be made by comparison. Using the definition of a limit, for every \epsilon > 0, you want to prove there exists an N such that for n > N,|x_n - L| < \epsilon.
The question is vague enough and seems to ignore the lack of convergence if x_n = -2 so I'm going to restrict my argument to x_n > 0. Clearly for arbitrary w and u > 0 such that w > u, then \frac{1}{\sqrt{0.5w+1}+1} < \frac{1}{\sqrt{0.5u+1}+1}. Using this, you can place an upper bound on the ratio of subsequent terms of the sequence x_{n+1} = \frac{x_n}{\sqrt{0.5x_n+1}+1} to say that x_{n+1} \leq \frac{1}{2} x_n, which is much easier to work with.
I don't think attempts to directly apply the definition of a limit without using this kind of workaround would be met with much success.