Three Good Reasons that DeFi is the, future of cryptoinvesting

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DeFi the future of cryptocurrency investing.

The future of cryptocurrency is no longer waiting for the number to go up, it’s earning income daily in DeFi.

Number go up.

This strategy is just “Buy Low, sell high” renamed. It means buying a crypto token, and waiting for it to go up in price. It’s usually a passive process, which means most investors can’t do anything to make the price go up, so they can’t do anything active to earn money. It is a powerless role, which involves a lot of waiting.

This strategy is the primary profit strategy for most investors, and I don’t like it fir two reasons. First of all, you are powerless to affect the price. You are just hoping and praying the price goes up, so you can sell at a profit. So “number go up” makes you powerless. Second, the odds are against you when you play “number go up”. The harsh reality is that the majority of new token prices start high, pump a little bit, then the price falls and stays down for months or years, until it pumps again. While there are definitely some traders who make money, it seems that most don’t make money, and many actually get poorer from losing most of their investment capitol. In other words the “Number go up” strategy makes you powerless, and makes most investors poor.

The alternative to “number go up” is to engage in decentralized finance.

There are three reasons I like decentralized finance.

First

First decentralized pays you daily. I have invested in Uniswap, JustSwap, PolyZap, PanCakeSwap, Polycat, and Cubfinance. My capital earned income daily. It is great. I am not hoping and praying to make money. I am making money.

Second

Second decentralized finance is an active process. You look for good yields, you look for safe projects. I am more in control, but I am learning how to pick safe investments. I got burned on Iron Finance and learned from it. I earned money in PolyZap, PolyCat, and much more in Cubfinance. I learned from it. You research the project developer, the names, faces, what projects are they involved in and what is their history. Plus you go to discord and Telegraph and find out what is the community like, which supports the project. It’s not helpless waiting, it’s an active learning process. I am not powerless, I become powerful.

Third

Third, decentralized finance is evolving. JustSwap, Sun coin, Just Coin and Uniswap taught me about being a Liquidity Provider. PanCake Swap and Cubfinance taught me about Yield Farming. PanCake Bunny and Iron Finance, taught me about Rug Pulls, and the importance of code audits. Autofarm, PanCake Swap and Cubfinance taught me the importance of Compounding and learning to differentiate between the different types of Tokenomics and the importance of continual learning.

Summary

First decentralized pays you daily. Second decentralized finance is an active process. You look for good yields, and you look for safe projects. Third, decentralized finance is evolving rapidly. Here on Leofinance we are part of a community where we can learn about DeFi, and with Cubfinance we are getting a hands on education. Plus seeing how new concepts in DeFi are implemented and how investors profit from these changes.

Cubfinance is a profitable, safe place to learn about decentralized finance, and the financial tools like staking, Liquidity provision and Yield Farming. This is the future of finance, and fortunate are we who are here. Today we are blessed with good fortune and one day wealth and freedom.

@shortsegments

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Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance.

Read more of shortsegments articles here: https://leofinance.io/@shortsegments

Leofinance, where you can blog or share financial topic content to earn cryptocurrency, as part of a passionate social media community.

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22 comments
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Do you think the current APR will stay as high or will they start to drop to more reasonable levels? If so, what would you consider a reason APR?

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I think the currency APR will drop as the Total value locked (TVL) increases in each farm or den, or rise when TVL falls. That is the design of each farm. But the increases and decreases are small, for example the BLRO-BNB farm was over 100%, I think around 105% and it is 94% now, which is still pretty phenomenal because the APR gives you daily earnings, but the calculated APY or yearly earnings with compounding is still around 100%, which is incredible!

If you compare it to savings accounts which are 0.25% or even the stock markets historical rate of return of 12-15% per year, it becomes even more attractive. You just need to reduce risk with research, or follow the money and invest in trusted projects.

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I am not hoping and praying to make money. I am making money.

The best words of this article, as they show that to earn you have to do something like an investment, not pray to a stick of wood or plaster, or believe in a spherer who reads the stars, money is earned by doing and working every day, not believing in stupidities.

And defi is the best way to do it in this digital age.

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Exactly!
No hopes and prayers the the price or number go up.
Execute a plan of action, that delivers results.

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I had similar thoughts on a post I wrote, except instead of DeFi, I was thinking of Hive. The idea is that I feel more control of the outcome on Hive than the buy and hold method.

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I share your feeling. I came from the buy and hope world of crypto investment to Steemit, and moved to Hive. I am much more comfortable creating content, and curating content daily for reliable income instead of hoping and praying that the price or number go up.

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I have same thought when I moved all my capital to staking. Good point of defi/staking is we can earn money daily.
But life is not always "pinky". When we enter the defi/staking, we need to aware about impermanent loss as well, capital is ate up when the price goes down. The daily earning can not cover the capital loss.
I tracked my staking stats in 3 months and I would like to share here

  • End of Apr - my capital in 6.4k$ and I earned 1k$ in whole Apr
  • End of May - my capital is 4k$ and I earned 536$ in whole May
  • End of Jun - my capital is 2.9k$ and I earned 273$ in whole Jun.

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(Edited)

Hi @sodomlv
Thanks for the comment. I agree that things are always “pinky”, as your capitol can lose value during an economic downturn, such as we just experienced with the fall of Bitcoin. If the drop is large enough your reduction in total value may exceed your loss. However one thing to consider is you may have still have lost significant value just holding your crypto outside a liquidity pair. But impermanent loss is real. I will include a discussion of it in my next article.

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