What is the absolute minimum amount of coins that I can use to learn defi?

I just received the mind-shattering amount of about 0.002 ETH (about 3€) on a Metamask wallet. I was wondering whether I can do anything with it. I assume gas fees, swaps, etc. will probably eat most of it.

But maybe there is a super-degen “strategy” that could let me learn “the ropes” of defi? I know my way around “regular” crypto but have never used defi before. I have a “theoretical” knowledge of how farms and LPs work but I wanted to have a little bit of skin in the game to see it in practice. If there is nothing I can do with it, I guess I will just leave it there…

Alternatively, I have a bag of DOT bought last year that is staking on Kraken, but since when I bought it was at around 24€ (…) it’s going to be a long way to the top again. I have looked around but I have only been able to find a GLMR/xcDOT farm on Moonbeam. Would you recommend that instead of staking DOT on Kraken? At this point, I wouldn’t be terribly hurt if I were to lose all those DOTs.

View Source

5 thoughts on “What is the absolute minimum amount of coins that I can use to learn defi?”

  1. Mainnet ethereum fees are too high. I don’t recommend starting with Moonbeam right now, the ecosystem is still recovering from the Nomad bridge hack.

    The Polygon network is probably the best option for learning the ropes. A lot cheaper than L2s or mainnet Ethereum, and most of the major protocols are deployed there anyway.

    You can use this list of the top protocols on Polygon: [https://defillama.com/chain/Polygon](https://defillama.com/chain/Polygon)

    Get familiar with the protocols you like, you don’t have to use more than $1 really. Gas costs will be less than a cent per transaction

    Reply
  2. Eth is useless for defi with that amount. If you really want to get educated through doing, I would pony up an extra few bucks and get to a chain with a lot of activity and low fees. Polygon is good, optimism/ arbitrum if you want to stay on eth, or fantom (super cheap, super degen, but quirky and weird). You’re optimizing for cost, all of the chains are going to be relatively similar for everything else with your needs.

    Reply
  3. If you want to learn I suggest a cheap chain…polygon, avalanche, fantom.

    You didn’t tell us what centralized exchange you’re using to buy crypto Buying a Blockchain primary token is the most expensive and complex step. For example, in the US, kraken does not support ACH bank transfers, so you have to use wire transfers…which start at $15! (Then they charge you like $2.50 to transfer if I’m not mistaken) On Gemini, you can’t buy any of these tokens directly, so you have to swap Bitcoin. These swapping services have minimums starting at $25.

    Here are your expenses:

    + Buy a secondary token on the given Blockchain.
    + Deposit this token on a protocol (that is, do something with it)

    I’d say you need a minimum of $10 + cost of acquiring the primary token. (the primary token pays for gas fees). Also, I always keep at least $5 in reserve for these cheap Blockchains

    The real issue is getting matic, avax, or ftm.

    Reply
  4. Practicing is smart and more people should do if just to make sure you know how not to get scammed/hacked. I guess Polygon if you plan on moving back to Ethereum but you could also use the cosmos ecosystem for literally 0 fees on Osmosis. You could buy a bunch of the cheap coins to throw in LP’s and move around. I would also try and experimenting with wallets and security, eg make sure you would be able to recover a wallet if you lost or compromised the seed. For Cosmos you could also use Evmos if you wanted to try EVM apps for also very low fees, but it’s very young so there’s not as much going on yet.

    Reply

Leave a Comment