Somebody asked me a long time ago how they should get started in defi with a couple hundred bucks. My answer? You shouldn't. Buy bitcoin and hold on for dear life until 2025 or so.
A couple hundred bucks won't get you anywhere in defi. If you take $200 and get a 10X in a year, that's $1800 over that year. Basically a hamburger. You should just go get a job and earn that in a week. If you luck out and get in on a degen yield farm with a 500% APY for a couple of weeks, that's like $40...if you avoid the impermanent loss? Is this really worth it to you?
Defi isn't a place for a one time investment or for cheap people. In order to create a profit opportunity, you will often have to provide investment capital in waves. Projects expect you to follow along with their development, providing capital at every step. If you can't keep up, you will not only lose your profit opportunity, but you may lose your capital as well.
There are some tricks to holding out on your initial investment longer, like investing on BSC instead of Ethereum. But even that won't save you. Getting any kind of money in defi means dedicating yourself to putting a substantial amount of capital into it. If you don't have a lot of capital, you should over time. Dollar cost average in.
Once you have $50,000 or so in the game, you can begin to see some real progress. This is when the APYs and 3Xs will begin to provide you real expansion at the rate of defi expansion, which you must do in order to maintain profitability. Making money in defi isn't about "picking the right investment." It's about planting a seed and growing with the market, stretching your tentacles out into the new innovations that are being created in real time.
It's also an incredibly bad move to get into crypto during this bull market. If you're starting out now because you heard about it from your stupid friend, you need to sit on the sidelines and watch for a month or so. I promise you won't miss out on any life-changing profits, but you will avoid 90% of the losses you WOULD have taken if you had aped in.
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Always remember:
Burgerswap Bridge will steal your crypto
Deus.Finance is led by a psychotic wannabe despot
AllianceBlock is a shit project
All algorithmic stablecoins (Basis Cash, Mithril, Empty Set Dollar) are a SCAM
Don’t get your bitcoin from PayPal
Trade on BSC, not Ethereum
Ivan on Tech, Elliotrades and Bitboy are complete liars, and
If you are always losing money trading crypto, read here.
