Sirwin
Sirwin
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"Only Invest What You're Willing to Lose" is Bullshit Advice.

By DeFi Demon - CryptoX0 | Defi Demon | 20 Jun 2023


Nobody is "willing" to lose their money

The advice should read — “Only invest what you are comfortable losing, but be prepared to lose it all.”

Investing is a form of taking risk — and with risk comes the potential of success and loss. When investing in DeFi the odds are very much against you. Those high APYs mean nothing when a platform rugs or the token price drops. You can be earning 2.5%+ per day. But if the token drops 200% you’ve lost.

Those who got in early got paid from your investment AKA fresh capital. You need to realistic and prepare for the worst case scenario. When you look around at DeFi what do you see? You’ll see plenty of failing platforms. Daily rugs and scams. Thousands, upon thousands of people are losing money.

If you’re new to DeFi, I’d say it’s not worth it. Wait a few years once it’s actually decentralised.

If the Drip Network Were “Truly” Decentralised,
control would be in the hands of the majority of users, rather than a single anonymous individualmedium.com
 

Until then invest in blue-chip cryptos and maybe take gamble on DeFi. But be prepared to lose.

About the title

While it may be true that nobody wants to lose their money, the reality of investing is that there is always some level of risk involved. Even the most successful and experienced investors experience losses from time to time.

Therefore, it is important to approach investing with a level head and a realistic understanding of the potential risks involved. By investing only what you can afford to lose, you can minimize the impact of any potential losses and avoid putting yourself in a precarious financial situation.

That being said, it is always a good idea to do your own research and seek advice from a financial professional before making any investment decisions. Don’t let greed decide. Be rational.

Don’t listen to random people online.

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Defi Demon
Defi Demon

Defi Demon is a blog that covers all things related to decentralized finance (DeFi). DeFi has rapidly emerged as a transformative force in the world of finance, offering a wide range of decentralized financial applications and services that aim to disrupt traditional finance systems. In Defi Demon, you'll find a wealth of information on various DeFi protocols, including lending and borrowing platforms, decentralized exchanges, stablecoins, and yield farming.

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