Might be good to enter early but not good if you loose what you have.
Thinking of making good returns on your investment is good but should be a fair practice too. As always in Investment market said to be that DYOR (Do your own research) just because after telling this for thousands of time we people believe that if any one making their money 2x, 5x, 10x etc in a small period of time our greed cant stop us to be in the greed universe. So read this guide carefully and if I can even help a single person to not to be scammed I will be pleased for time sparing for posting it.
What is DeFi ?
DeFi is an abbreviation of the phrase decentralized finance which generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum. In simpler terms, it’s financial software built on the blockchain that can be pieced together like Money Legos.
To get a feel for the products and services that exist in the Ethereum DeFi ecosystem, you can check out our DeFi rankings which tracks the current value locked into popular DeFi smart contracts.
Computers have disrupted nearly every industry over the years. Each innovation builds on the previous one, and digital products and services become more sophisticated. Through technology, we’ve catered the world to fit our needs. From digital assistants to home automation, programs now affect many aspects of your daily life. So why would money be any different?
Ethereum has gained a huge attraction on the basis of the $1 Billion locked for #DeFi on the Ethereum Network from couple of months. But that also attracted many scammers to scam people with fake DeFi projects. Recently YAM token broke down 99% within minutes and that also shows we must choose wisely for the project to invest and the team must be trusted and also should be there from years in the crypto space or good qualified and knowledgeable people with some good viable and potential project.
Source : https://defipulse.com/ Date : 19/08/2020
With this date Total value of $6.33 B has been locked in DeFi and this also attracting many new projects to enter the Blockchain space with the name of DeFi. Now here comes threats too.... As you might be aware of the terms like Pre-Sale, Public Sale, OTC, Grey Market etc. This is not subjective for any paricular project but now if we think any new DeFi project is coming in the market we all wanna be inclusive from its starting time of pre-sale. But beware of the fake uniswap addresses and fake links.
2nd Problem to the DeFi
And Scams are not the only problem DeFi facing nowadays but Ethereum's High trasnsaction fees are also a big hurdle to the DeFi protocols and now.
There is an only option to port DeFi protocols to the Layer 2 like Matic, xDai, Loom etc. Plasma based sidechains can scale up the transactions and that with too low cost and that can be helpful to build DeFi with expecting Mass Adoption.
