A lot of people who follow me are new to Crypto or DeFi.
So I'm going to create some more beginner friendly content as well.
This thread covers 5 common DeFi mistakes. π§΅π
"How to get rekt in #crypto and #DeFi"
Graphics inspired by @visualizevalue
So I'm going to create some more beginner friendly content as well.
This thread covers 5 common DeFi mistakes. π§΅π
"How to get rekt in #crypto and #DeFi"
Graphics inspired by @visualizevalue
1/
Mistake #1: One egg, one basket
One of the big risks in DeFi is smart contract risk.
This is the risk that a project has a bug or vulnerability in its smart contract such that hackers can exploit it and steal all the $.
Mistake #1: One egg, one basket
One of the big risks in DeFi is smart contract risk.
This is the risk that a project has a bug or vulnerability in its smart contract such that hackers can exploit it and steal all the $.
2/
Vulnerabilities can be in coins, platforms, wallets or exchanges.
Good projects will have been through smart contract audits, but even audited projects have been exploited before.
It's important to spread your funds out between multiple coins and on multiple platforms.
Vulnerabilities can be in coins, platforms, wallets or exchanges.
Good projects will have been through smart contract audits, but even audited projects have been exploited before.
It's important to spread your funds out between multiple coins and on multiple platforms.
3/
Mistake #2: Only investing in microcaps (very small projects)
These get destroyed when things are bearish and the majority of them underperform $ETH and $BTC.
Build your portfolio foundation with stronger coins that can survive bear markets.
Mistake #2: Only investing in microcaps (very small projects)
These get destroyed when things are bearish and the majority of them underperform $ETH and $BTC.
Build your portfolio foundation with stronger coins that can survive bear markets.
4/
Microcaps should be treated as asymmetric bets.
Think of them as 100x or 0x bets.
Pick wisely.
Have a long term view of the market.
It's easier to make it with a long term time horizon.
Microcaps should be treated as asymmetric bets.
Think of them as 100x or 0x bets.
Pick wisely.
Have a long term view of the market.
It's easier to make it with a long term time horizon.
5/
Mistake #3: Only looking at APY before investing
DYOR before apeing into random billion % APY $OHM fork projects.
Don't ape in just because of high APY.
High APY crap is still crap π©
Mistake #3: Only looking at APY before investing
DYOR before apeing into random billion % APY $OHM fork projects.
Don't ape in just because of high APY.
High APY crap is still crap π©
6/
Mistake #4: Not protecting your crypto
There are all kinds of notorious scams in the crypto space.
Do not send your coins anywhere until you are absolutely sure where it's going.
Set up 2FA.
Keep your seed phrases safe.
Basic stuff, but very important.
Mistake #4: Not protecting your crypto
There are all kinds of notorious scams in the crypto space.
Do not send your coins anywhere until you are absolutely sure where it's going.
Set up 2FA.
Keep your seed phrases safe.
Basic stuff, but very important.
7/
Do not sign transactions in your MetaMask wallet unless
- You are 100% sure you're on the correct site
- You know what the transaction is doing
See this video about common scams in the #crypto world:
Do not sign transactions in your MetaMask wallet unless
- You are 100% sure you're on the correct site
- You know what the transaction is doing
See this video about common scams in the #crypto world:
8/
Mistake #5: Ignorance
Learning is your best chance of making $ in this space.
Do not invest in a project till you understand it.
Do not buy coins because a ShillTuber told you to.
Do NOT over-leverage.
Manage risk carefully based on your individual situation.
Mistake #5: Ignorance
Learning is your best chance of making $ in this space.
Do not invest in a project till you understand it.
Do not buy coins because a ShillTuber told you to.
Do NOT over-leverage.
Manage risk carefully based on your individual situation.
9/
But most importantly: Do not be afraid to start.
Learn how to research coins & DYOR.
Learn how to use DeFi & try it.
Keep learning & ygmi.
#WAGMI
But most importantly: Do not be afraid to start.
Learn how to research coins & DYOR.
Learn how to use DeFi & try it.
Keep learning & ygmi.
#WAGMI
10/
Much of this can be boiled down to 2 common mistakes:
- Apeing in
- Not apeing in enough
π
Much of this can be boiled down to 2 common mistakes:
- Apeing in
- Not apeing in enough
π
11/
Like / RT the first post if you think this can help others.
I post daily explaining #DeFi projects, concepts & strategies with graphics.
(see pinned tweet on my profile)
Like / RT the first post if you think this can help others.
https://twitter.com/shivsakhuja/status/1479879576427778048?s=20
I post daily explaining #DeFi projects, concepts & strategies with graphics.
(see pinned tweet on my profile)
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