5 reasons why DeFi is awesome (Reason #4 will surprise you)
Introduction
DeFi (Decentralized Finance) took the crypto world by storm. I clearly didn’t expect such a mania.
It literally reminded me of the 2017/2018 ICOs craze were buying anything could give an instant X3/X5 (assuming one knows when to exit properly)
Based on the Ethereum blockchain and started with a few famous blockchains/tokens in 2018 such as $COMP, $YFI, $AMPL. I didn’t notice those before July 2020 and I have to admit the concept behind those tokens is truly revolutionary.
$YFI (Yefi) for instance is a form of passive investment. The system is automatic and selects the investments to make behind the curtains to maximize your return on investment.
Let’s cover now my TOP 7 reasons why DeFi could bring you a lot of profit
Reason #1: Farming
Back in the days, we were “mining”, buying expensive hardware to mine cryptocurrencies — and those mining hardware generally being located in foreign countries where the electricity cost is cheaper
Let me introduce you to a new paradigm called “Farming” — here no hardware needed.
Farming means you’ll buy the native tokens and add them to a liquidity pool. As you provide liquidity for everyone, the DeFi rewards you hourly/daily with a reward denominated in a native token.
What’s really beyond awesome and pretty new in the investment world, is that we’re talking about APR/APY (Annual Percentage Rate/Annual Percentage Yield) in the 3 or sometimes 4 figures….
Imagine making 1–2% a day on your investment from Day #1
This is unheard of before DeFi.
Obviously, all of this is very speculative and risky. It’s great to get a reward in a native token assuming the native token appreciate in fiat currency value also and we can withdraw our profit (which is not guaranteed)
Let’s not lie to ourselves, we’re not here for the tech. We’re here for making more fiat currency and improve our lifestyle. Once done, the tech could die, we shouldn’t care less
Reason #2: Meet Fascinating People
Since Summer 2020, DeFi is moving at one speed — light speed.
The amount of daily new innovations, blogs, websites, tokens is… astonishing.
A lot of crypto folks are working hard to enable the future of finance. If you think your bank doesn’t reward you enough to borrow your money (= the money you deposit), then you’re halfway on your path to success.
Crypto innovators are super busy but always willing to teach, interact with their audience. Most of them are pure scammers and the only experience teaches how to differentiate a scammer from a legit entrepreneur.
Reason #3: Bullish for Bitcoin
DeFi has nothing to do with Bitcoin. That’s being said, most of the people (nicely called “normies” by the crypto community) see cryptocurrencies as a single entity.
More eyeballs are directed towards crypto assets, and as such, this is bullish for Bitcoin overall.
Reason #4 and Following
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