At the beginning of April 2022, I began my journey into learning and understanding cryptocurrency.
Eventually I found ways to invest money or time into earning cryptocurrency, such as Staking Cryptocurrency, NFT Staking, Games, Gamified Investing, Social Tasks.
Here are the things I learned during this phase, which I would have appreciated knowing before I began:
1. Stablecoin Yield Adds Up
Stablecoins like USDT, USDC, or FDUSD do not look attractive to amateur investors, but they offer predictable returns through staking, lending, or yield farming.
Binance has great options for flexible staking, simply hold Stablecoins on Binance for more than 10% returns per year.
2. If It's Too Good To Be True, It Probably Is
An easy to spot red flag for scams is absurdly high returns on your investment. If you see something like 300% returns per year, stay away from that project.
3. Nothing Lasts Forever
There are many ways DeFi projects meet their end, hype dies down, unsustainable revenue models, developers move on, technical issues and so on.
Have a reasonable target, take profits and always have an exit strategy. Do not be tempted into an unending reinvesting cycle.
4. Don't YOLO It All Into One Project
Diversify your investment, both with time or money. It is always a good idea to have multiple avenues of income to reduce risk.
5. Expect Nothing and You Won't be Disappointed
Most projects do not perform as well as your expectations, do not take off, or take too long to be worth it.
Do not count your gains before they are on the blockchain.
6. Locked Staking is a Risky Move
I have lost count of the amount of times that a token is either pumping or dumping, but I could not make any moves because the tokens were locked in staking contracts.
Always do your research and weigh the risks before committing.
7. There Are Always Signs Of Trouble
Be on the watch for early warning signs, like sudden team changes, lack of updates, or unsustainable returns.
By staying vigilant, you can exit early or avoid risky projects entirely.
