Once again, I was posting a comment on @LeoMarketTalk and it turned into a novel so I decided that since I haven't had time to post for a while, I'd turn this into just that.

The question is: is defi safe?

For those of us that were around for the last bull run in 2017, scams ran rampant in the ICO world. With the sudden raging success of Bitcoin and Ethereum and Litecoin and Dash and a few others, people were putting out ICO's as fast as they could cobble together a white-paper and roadmap. It was easy money. With little to no regulation and a FOMO-filled flaming hot bull market, new coins would come out, pump immediately, and the founders would make off with millions of dollars with very little development actually taking place with their coins.

Defi is the 2021 iteration of those scams. For every solid, legit platform being built out there, there are three more that are rug pulls waiting to happen. It is absolutely VITAL to know who is standing behind these platforms and what sort of development is taking place. If it's not still being worked on and improved, be very careful. None of these things will ever be truly "done". They will constantly need to evolve and improve. It's one of the reasons I'm in #CubDefi. We know the team and it's track record and we know that they are continuously building and improving upon the platform they've created. AND they take security very seriously. Huge plusses.

In the meantime, people need to recognize how flipping early we are in the defi world. Seriously, this stuff is not even a year old yet. And we're in a bull market so people are building and opening these things up as fast as they can without putting much thought into what could go wrong. Defi is definitely here to stay. But what it looks like today will probably barely resemble what it looks like in 3 years.

I've said this before....the bull run of 2017 fueled the infrastructure development for this bull run. While we were in a bear market following that run, literally billions upon billions of dollars were being invested in crypto "companies" all around the world. Defi was born out of those investment dollars and was developed in response to the needs created by the frantic activity generated at the peak of that bull cycle.

The same thing will happen this time around. Billions of dollars will again be put into ideas and platforms that solve needs created and brought to light by this current bull cycle. We already know about the scaling and fee issues. Two others will most likely be security and probably insurance. While 2017 had ICO scams popping up everywhere, 2021 has defi platforms as the easiest way to scam people out of money.

As tempting as it is to throw big money into things returning 200%, 300%, and even more, all it takes is ONE loss of 100% and you're out of the game. Capital preservation is a must if you want to keep growing your account. I mean, what's better: something that 5x's and gets the rug pulled or making 50-100% on something that keeps your money safe. Pretty much a no-brainer, right? And you need to realize how ridiculously good 50-100% returns actually are! I mean, seriously, doubling your money every year?!? $1000 turns into $1M in less than 10 years. Insane.

Do your research and find solid teams with real track records and legitimate roadmaps and put some money there. Spread it out a little to mitigate some of your risk and then pay attention to what's going on. It's your money and it's real so it behooves you to learn about where you are investing it. #LeoFinance is a good place to do just that. There are people here far smarter than I am blogging about what's going on in the world of crypto and defi. Educate yourself.

In the meantime, there are very good opportunities here in Leo and Hive to learn while you earn. #CubLife allows you to participate in defi with very small dollar amounts so you don't get rekt by fees. #CubDefi, as I stated earlier, has a team with a documented history of caring about their users money and they are constantly upgrading the platform to include more and more opportunities with collaborations and relationships with other platforms. It very possibly could be the single best defi platform currently in existence to begin your journey into defi, and the way they're going, you may never need to go anywhere or trust anyone else.

So is defi safe? It's still in the early stages so that has yet to be definitively determined but there are places that are doing everything they can to make it as safe as possible. Those are the ones I'm sticking with at this point. Like I said, #CubDefi is one of them. Starting at home among a community of like-minded individuals where you can get questions answered and have access to the development team seems like the safest bet for me right now.

Thanks for reading!

If you have questions, feel free to visit us in #LeoMarketTalk where comments and questions are not only answered, but appreciated.

Posted Using LeoFinance ^Beta