There are many reasons to explore DeFi (Decentralized Financial) and more.
Hello, crypto newbies. This article is written specifically designed for those who are new to crypto. You may have been around for a while, but you’ve never been able to dive into the world of blockchains other than Binance and Coinbase.
There’s a term used to describe actively investing or passive investment. Passive investing refers to when you purchase an asset then sit for a lengthy time. Active means that you actively trade it, for example, buying low and then selling high to repurchase it at a lower price.
You may have heard somewhere that passive investing is superior to active investing.
The phrase states, “time in the market is better than timing the market.” This claim could be valid within the world of traditional finance.
In cryptocurrency, we’re not entirely passive as we do in stocks. There are several reasons for this.
The newness of the technology requires care
The issue is not the price, the reality that the cryptocurrency market is just beginning to emerge. It’s growing fast. Inactive investors are the definition of the term name (not likely to achieve it.)
The coins became famous in 2014, but only a few were able to make it to 2022. There were some top coins in 2017-2018, but they did not see a wider acceptance (and an all-time high cost-wise) within the present bull market.
The reality is that OG investors are trapped in the 2017-and-beyond mentality. They have missed many things and have become the newest boomers in the business. Their knowledge is outdated, and they prefer being a part of the norm, they get lazy and uninformed, and we never call them alphas, or in the end, for everything else.
There is no way to predict the future in a constantly changing industry, and it is imperative to keep up with the technology — and the market is heading. If we don’t, we aren’t going to make it.
Utilizing DeFi is like having the best seat in an event. You can see how the show unfolds from a close distance.
It is like investing in businesses. The only way to determine whether that something is good or bad is to use the product or service. That’s how you can build confidence. In the game, skin can result in convictions.
Conviction is the number one weapon to investment success. It’s when you’re confident that the asset you own is a treasure. You are aware of its strengths and challenges, and you are aware of its hidden potential.
This way, it’s time to transfer funds to a private wallet and explore the dApps (Decentralized Apps.)
Don’t become exit liquidity
It’s an open secret within the crypto world, but many newcomers may not know. The reason is that it is far too late by the time an exchange lists a token on a central exchange (Cass).
You’ll not have to be an early investor anymore.
CEX listing is when the earliest investors exit by selling their securities. This listing gives them the liquidity needed to pay out large amounts. In other words, they’re dumping money on you.
This is especially true for altcoins falling into the categories of “shitcoins” and “meme coins.” Even the most successful projects are afflicted by such treatment, and every project is susceptible to hand whales made of paper and VCs.
This is the main reason you should look into DeFi. You can locate an investment with a modest market capitalization but a considerable upside.
It’s where you can see early projects that are beginning to gain traction. It’s the place to support and help projects whose followers on Twitter aren’t yet 1000.
DeFi is how you are “early.”
Opportunities are everywhere
Here, we arrive at the “buy and hold” point that I have mentioned in my title.
The opportunity to profit from bitcoin has passed. BTC is the current boomercoin and is the most underperforming cryptocurrency in 2021.
It’s time to go to move towards Decentralized Finance.
After you have learned about DeFi, you’ll discover that crypto has more than simply holding tokens.
Learn about the possibility of earning additional profits by staking and yield-farming. You’ve likely heard of airdrops, where users get the cryptocurrency at no cost because they use specific DeFi protocols.
Additionally, you’ll learn that you can use your fiat, which can be converted into stablecoins, serve you and yield double-digits each year.
There’s a lot to discover in blockchain technology. Everyone has the chance to succeed, regardless of their background.
Privilege (or the lack of it.) It is possible to take part regardless of nationality or race. If you’ve got an account and a credit card, all you have to do is hit “connect.” No gatekeeping, and nobody can stop you.
Passion. Crypto has a myriad of sub-niches in which you can participate. Gaming in the metaverse? Creative arts using the NFT? DeFi for more math geeks? Find your tribe.
Financial situation. You don’t need to be wealthy to begin your journey into DeFi. You may have been aware of Ethereum and its infamous gas fees that are high.
However, Ethereum is the only innovative contract platform that does not allow people with low budgets due to the excessive gas costs. Other platforms, such as Polygon, Fantom, and Harmony, have a price tag of just pennies on gas costs.
Don’t be afraid about the ceremony of passage
But what happens to scams? What if I should lose my money?
There are a lot of scams in the world, I’m aware. But you won’t ever learn if you don’t try. How do you distinguish gems from rubbish without diving into the world headfirst?
The successful crypto people right now have all gone through the same experience.
They entered the field with a sense of optimism and hope, without being aware of anything. After that, they face difficulties, chaos and apprehension, hacks, rug pull, and even bear markets. They get more innovative, more agile, and more intelligent through all that. They also become combat-ready. Performance of the portfolio increases due to the experience they’ve gained.
Everybody must start at an early stage. As with everything else, the most important thing — and most difficult — is to begin. If you aren’t starting now, when?
In particular, now that many people have been before you have shared their experiences. This way, you will learn things, how to proceed in the future, and what’s wrong. How to reduce the risk. How to distinguish between legitimate businesses from scams. You’re fortunate to have pioneers before you.
Don’t forget to contribute the other way
As time passes, you’ll see how extensive the blockchain market is once you begin exploring the possibilities. You’ll also notice that this industry has a lot to provide, and there are many opportunities to consider beyond investing.
Blockchain is an exciting new area, and it requires skilled individuals from all fields of study. Not just those with technical backgrounds, but also other fields such as design, marketing media, public relations, and accounts (taxes.)
There’s something for all
This space will be seen differently, and it will be seen as a movement for the community. You realize that this is the future. Prepare yourself to be in love.
Yes. I understand. This all sounds daunting. However, I promise you that it becomes more straightforward when you’ve embraced DeFi. You’ll realize that there’s no way back to conventional financial institutions.
You can’t simply look at the cryptocurrency market in a new way. Crypto can change the way you see the world and yourself. You’ll be able to see the inefficiency of Traditional Finance. You’ll be excited by the numerous opportunities offered by crypto. You feel solid and secure as you take care of yourself.
And then there’s this strong belief that you have that you’ll succeed somehow.