Dive Into DeFi

Dive Into DeFi: It’s Time For A Serious Conversation (Don’t Be a Degen Part 2)

I have seen a lot of community members active in our BSC.News telegram channel asking whether projects are safe, rug proof, good investments, etc. I’m just going to be honest in addressing this question in this article.

Binance Smart Chain growth has been incredible lately, and I want to take a minute to revisit and expand on the topics covered in my article “Don’t Be A Degen.”

We Don’t Know. Nobody Knows. Do Your Own Research

I hate the statement, “Do your own research.” Do your own research how? Start by tracking down who the anonymous developer is? Learn how to read code? Look into the heart of the developer and try to find out if they are committed? Trustworthy? Do your own research basically means, “I have no idea, and I don’t want to be liable for anything that happens to you.” So yes, do your own research. I think this mostly means… pull the slot machine lever and pray to God it does not rob you, or break down, or both. 

With that covered, I want to discuss BSC.News for a minute. 

What is Our Goal at BSC.News?

From my vantage point, our goal is to help build the BSC community through project awareness and educational content. This is sort of an interesting position to be in. We sincerely want to help our readers gain insight into the market, while also attempting to help projects become better known. We try to help our readers through multiple educational series (mine included), market analytics, announcements, and more. We want to help projects gain exposure through AMA’s, sponsored posts, podcast episodes, and website advertisements. 

This part is important: We know as much as you. We try to mitigate the possibility of assisting ill-intentioned developers through various internal controls. I do not believe we are perfect, and I have no problem saying that out loud. I am dreading the moment a project rug pulls after we hosted an AMA, or a podcast, or published an in-depth project review. I hope this never happens, but I want to be up-front and honest on behalf of the BSC.News team. It could happen, and we are doing our best to make sure it does not. I suggest you use our site to learn about projects as they enter the space but invest your money cautiously. I am not going to tell you to “do your own research.” Instead, I am going to suggest that if a project sparks your interest and you feel that urge to be an early investor, just put in a little bit that you are willing to part ways with if it goes south. I’m right there with you.

Navigating Around Icebergs

I lost money in a recent project that suffered an economic exploit. I have been part of rug pulls. It sucks, but I learned from them. If you are new to De-Fi, please take this one piece of advice: You do not have to be first to make money in De-Fi. 

I have learned this lesson the hard way a couple of times, and I am now as careful as I can be with my money, and this has been paying off. It can be exciting to jump on brand new high-yield plays, but to be perfectly honest, I’m not sure I see that point. At best, I’ll toss a little bit of money at a new project to try to capture a quick profit, but I recognize this to be what it is: gambling, not investing. 

Instead, I sit patiently with my liquidity. I want to compound Bitcoin, Ethereum, BNB, and other large-cap cryptos. I also invest in BSC projects that have been around the block and are market-tested. Even a month or two can make me feel more comfortable about moving money into a new yield farm or AMM. I have no problem following the major liquidity and letting others take on the initial risk. 

Excellent Returns are Readily Available

You can find amazing yield on incredibly safe liquidity pairs (I’ll note that I’m using safe as a relative term to other cryptocurrency investment positions). Liquidity pairs with BTC, ETH, BNB, and stable coins can fetch an easy 60-100% APY on a platform like PancakeSwap. Compound those returns with a trusted yield optimizer and you can really watch your portfolio grow nicely over time. Really, take a moment and think about what this market is giving us right now: high APY’s on a cryptocurrency that publicly traded companies are currently rushing to buy. Add a little spice to your portfolio with some rising BSC projects, and the likelihood that you lose money over time is pretty darn low. 

Don’t Get Greedy

We just watched the entire market reach new highs within the last week, only to drop 20-50% across the board. Did you take any profit? I certainly did. DeFi provides us with an amazing profit-taking opportunity that I don’t see available in other markets. You don’t even have to sell off your core positions, simply convert some of your earnings to a stable coin or send them to your bank account. You can even convert earnings into a stable coin pair and continue earning high APY. To me, it’s like a dream come true. 

My De-Fi Goals

At this point in BSC growth, I cannot keep track of all the new projects coming into space, and I’m fine with that. I really do not want to invest in a new project until it has reached a maturity of 4-6 weeks so that I can take my time assessing the project, the development team, and the best way to utilize their ecosystem. 

My goal in DeFi is to build an asset base of dividend-paying positions that I would be happy to hold for the foreseeable future. I try to make as few portfolio moves as possible with a focus on compound earnings and profit-taking strategies. There is certainly big money to be made from being early in a project, but there is also big money to be lost. I like to think that we are all part of a sort of financial system shift, and I do not want to lose capital because my greed became the driver of my decision-making. 

With all of that said, if you are here to gamble, knock yourself out and have a blast. I wish you the best of luck. For everyone else, don’t be a degen. 

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