I’m new to defi, so I’m wondering whether or not there is a way for me to invest without risking all my money. I know that you can’t be 100% winning all the time, but I would like to know if I can invest without the outrageous risk of losing everything I’m investing.
Buy 70% btc 30% eth
Hold for 5 year and do nothing
Keep your own keys – hardware wallets are great if you need to make transfers but buy and hold them take a hardware wallet – right the private key spread across 4 bits of paper hand written x 2 (a and b) then separate the paper and the back ups and destroy the hardware wallet
Zero risk of losing everything is not possible with crypto and defi, sorry to say. If you want that then you should be parking
cash in an FDIC insured bank. Very (VERY) low risk of losing everything -> Total market mutual funds. Medium/low-ish risk (relatively) of losing everything -> BTC or ETH stored on a hardware wallet you control. Altcoins and Defi, highest risk. Just the way it is.
I’ll let someone else comment on the things you can do within Crypto to reduce risk (but anyone claiming zero risk is lying to you).
You can minimise the risk with following:
1. Don’t use leverage
2. Don’t go into shitcoins, you will be outperformed by experienced traders
3. If you have no idea about protocols start with the ones that makes Ethereum ecosystem: Maker DAO, AAVE, Uniswap, Yearn. Nice of DeFi is that, you can invest in them like in ETF via token set front. Do I recommend it? Much more than Shiba Inu. Not financial advice. Just fun fact.
4. Don’t hold your coins on an exchange. Period. Withdraw them if they’re supposed to be held for longer period of time.
5. Use only legitimate CEXes. Withdraw then.
6. DCA is a good way for every newcomer to start. Time in the market > timing the market.
7. Avoid. Crypto. Influencers. These are mostly shillers. In bull market everybody earn.
8. The best investments are those you understand. Keep learning, asking questions on sub, think as much you can for yourself. It always pay off to make own decisions. You can listen to a tip, but don’t take it is as granted.
Cheers mate, have fun. DeFi gets complex, but when you’ll get it then you’ll start see ways of earning on it like nowhere.
The honest answer is there is always some risk. There are DeFi exploits weekly in which millions are drained by some smart contract bug or hack. The safest thing you can do is use open-sourced, mature platforms like AAVE, Compound, Curve etc. but even these are not infallible. They also tend to have far lower yield due to their popularity.
I’d stick with the main ones, BTC and ETH. If you want to be exposed to Defi, the big ones are Lido, Uni, Aave, Rpl. I’m also using Cake, Dafi, and Osmo to stake. Other infrastructures like Matic and Polkadot are also interesting. The risk of losing everything is low unless you follow some crazy leveraged strategy.
AMKT índex which works like an ETF, if you are looking for passive income stick with the most well known like Aave. If you want to risk a bit I would recommend Beefy finance
As a crypto newbie, do your research, learn how to DCA, diversify your portfolio, and consider long-term investments. BTC and ETH seem like good bets for any newbies as a start. And, as knowledge and risk tolerance grow, ATOM, CTSI, MATIC, etc., can be accumulated.
All in doge don’t @ me
ApeCoin my man DeFi up to 120%
BTC would be the safest crypto to invest in as a newbie. But if you have further risk appetite you can load up solid altcoins like ETH, MATIC, OCEAN and ATOM. These are some of the best utility driven coins in the market.
There’s no guaranteed way but you can DCA and invest from time to time to reduce the risk of volatility. Also investing in solid crypto projects like BTC, ETH, BNB, MATIC, FTM, CTSI, etc., is very important.
I believe it depends on many factors. Of how much you will invest, you should always keep in mind to invest as much as you can afford to lose and never forget to DYOR. I would say there are no safe options, but for newbies, BTC and ETH are the best investment. Start researching Polkadot, Polygon, Chainlink, and DIAdata. These are all solid projects. Good luck.
If you want safe then I don’t think you should be in crypto at all. If you want safer then I would practice sound portfolio management practices and diversify your risk across different chains, protocols, and tokens
My best move has been earning interest on over-collateralized algorithmic stablecoin pairs at beefy finance or other auto yield re-invester. I had a position earning 27% APY gradually decreasing to 6% APY as we entered the bear market. Great interest nonetheless. The stablecoins should have an open source non-suspect contract, and base their value on unrelated cryptocurrencies. This is the only class of stablecoin that has never failed. DAI and MAI for example.
Don’t confuse with algorithmic stablecoins that base their value on tokens they control the supply of like Luna, under collateralized like at Iron Finance, or company run like USDC. USDC recently depegged and since recovered, show casing a scenario where even though a company did everything right, a company’s stablecoin could still fail.
Anyways while we’re in a bear market with high inflation on fiat, blue chip crypto is probably going to outperform what I’ve described above, as it recovers value into the next bull market. But who knows? Not financial advice. In fact, I could be a hobo under a bridge. Don’t listen to me.
r/cryptoinvestmenthub is a budding community targeted at making dependable investment decisions, I can see a huge blown out of great investors and decision making off there
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Buy BTC and ETH and hold.
Anyone saying otherwise doesn’t know what they’re talking about. Everyone in this space holds both coins as they’re the two largest and two biggest in their respective niches
Honestly, there is always some risk and that’s exactly why you shouldn’t invest what you can’t afford to lose.
Make better plans maybe if possible get yourself into a community or get a CPA.
When investing always assume you will lose it all period. Once you figure your tolerance threshold, invest only that which you are OK with losing. This not only applies to crypto but any investment you decide to get into, IMHO.