Is investing in DeFi safe?(collected)

[EAA-ALLAH]

No, it’s risky. Many believe DeFi is the future of finance and that investing in the disruptive technology early could lead to massive gains.

But, it’s difficult for newcomers to separate the good projects from the bad. And, there’s been plenty of bad.

As DeFi has increased in activity and popularity through 2020, many DeFi applications, such as meme coin YAM, have crashed and burned, sending the market capitalization from $60 million to $0 in 35 minutes. Other DeFi projects, including Hotdog and Pizza, faced the same fate, and many investors lost a lot of money.

In addition, DeFi bugs are unfortunately still very common. Smart contracts are powerful, but they can’t be changed once the rules are baked into the protocol, which often makes bugs permanent and thus increasing risk.

[heyod hewow]

Ethereum co-founder Vitalik Buterin said that the economy of DeFi projects differs little from the high inflation policy pursued by the US Federal Reserve System (FRS), which is often criticized in the cryptocurrency space.

Buterin wrote he personally intends to avoid this space until it settles down and turns into something more stable.

The high market value of such tokens leads to an increase in speculative interest. Buterin notes that DeFi projects bombard their participants with tokens, which increases negative pressure on the price and multiplies the risks for their holders.

[ShadowCrypto]

Nothing is safe, nothing is guaranteed, all kind of cryptocurrency has its own risk, it's our part to make research before investing in any coin, Defi it's even more complicated because of so much hype, need to think 2-3 times before investing on it.

[MrSpasybo]

First of all, I think we have misunderstood the concept of DeFi. DeFi is a decentralized finance, and it is the target of the entire crypto world, when we don't use fiat - a product that is manipulated and controlled by governments.
DeFi is our future. I always believe in this.
For projects that represent DeFi now, mainly come from two sources:
- Borrowing & lending.
- Provide liquidity for pools.

The first source is quite good, I believe their smart contracts are quite good since these projects have existed and developed for 2-3 years.
Source 2: a lot of risks, errors, manipulation, control, exit scam ... I do not encourage anyone to participate in such projects, even YFI, because we do not know for sure how is their future, their value has increased too quickly in a too short time.

[H2O]

No invest is safe,, but people are being encouraged to invest in the world cryptocurrency market cap because of getting more or better somethings. DeFi projects are very much profitable but dangerous also. Before investing a project one should investigate deeply.

[heyod hewow]

First of all, I think we have misunderstood the concept of DeFi. DeFi is a decentralized finance, and it is the target of the entire crypto world, when we don't use fiat - a product that is manipulated and controlled by governments.
DeFi is our future. I always believe in this.

I think many of us quite correctly understand the essence and purpose of DeFi and I share your point of view.

For projects that represent DeFi now, mainly come from two sources:
- Borrowing & lending.
- Provide liquidity for pools.
The first source is quite good, I believe their smart contracts are quite good since these projects have existed and developed for 2-3 years.

I agree with you, in the next two or three years DeFi will develop and get more practical application.

Source 2: a lot of risks, errors, manipulation, control, exit scam ... I do not encourage anyone to participate in such projects, even YFI, because we do not know for sure how is their future, their value has increased too quickly in a too short time.

Source 2 reminds me the most of the banal Ponzi scheme. That's right, it's an old Ponzi Scheme, and nothing more, even if it is legendary by the new DeFi-trend.

[hair]

I think we should see one year of project progress. Is the new DeFi project any good or not? Many DeFi projects now use bounties for promotion, once they have completed a sale, their website is inaccessible as well as their social media. they fled after earning a lot of money. So the DeFi project could become a new kind of scam, so always be careful

[Triedboy]

Cryptocurrency market allways risky. Investment in DeFi also risky.none can get any profit without risky investment.

[Senin]

You should always be very careful when investing in a cryptocurrency if it rises in price very sharply and high. So, more recently, the YFI token rose in price to $ 42,000 and had a capitalization of more than one billion dollars. Its further rapid price growth was predicted to one hundred thousand dollars. Today its price is $ 20,877 with a capitalization of $ 625 million. Of course, now we are seeing a general decline in the cryptocurrency market and therefore the YFI token is also falling in price. At the same time, no one can guarantee that this token can rise again to the previous price heights. The hype around him may have passed by then. Investors who bought the YFI token at a price of about forty thousand dollars can suffer serious losses.

[vaysar]

As there was a boom in ICOs before, there is also a boom in DeFi and there is also a lot of fraud here. Who also has experience of investing in ICOs, so it will be easier to deal with investments in DeFi, because DeFi will in any case become an essential part of the cryptocurrency ecosystem over time.

[Alcor]

As there was a boom in ICOs before, there is also a boom in DeFi and there is also a lot of fraud here. Who also has experience of investing in ICOs, so it will be easier to deal with investments in DeFi, because DeFi will in any case become an essential part of the cryptocurrency ecosystem over time.

Soon, the hype around DeFi projects will probably subside. Against the backdrop of a slight drop in prices in the cryptocurrency market, DeFi project tokens have fallen in price very significantly. So, the leader of these DeFi projects at their price, the YFI token today dropped to a record low capitalization of $ 549 million, although not long ago it had a little more than $ 1 billion and has a price of $ 18,338. When this token had a price of more than forty thousand dollars, it was predicted that in a very short time it would rise to one hundred thousand dollars. It is possible that this token will no longer rise to such a high price level.

[EAA-ALLAH]

As there was a boom in ICOs before, there is also a boom in DeFi and there is also a lot of fraud here. Who also has experience of investing in ICOs, so it will be easier to deal with investments in DeFi, because DeFi will in any case become an essential part of the cryptocurrency ecosystem over time.

Soon, the hype around DeFi projects will probably subside. Against the backdrop of a slight drop in prices in the cryptocurrency market, DeFi project tokens have fallen in price very significantly. So, the leader of these DeFi projects at their price, the YFI token today dropped to a record low capitalization of $ 549 million, although not long ago it had a little more than $ 1 billion and has a price of $ 18,338. When this token had a price of more than forty thousand dollars, it was predicted that in a very short time it would rise to one hundred thousand dollars. It is possible that this token will no longer rise to such a high price level.

Yes brother you are right because YFI is a DeFi based project and already it created miracle in cryptocurrency market because it covered Four times of bitcoin price but alas it's price gradually decreasing and now may be under 20k.

[Hometown]

In cryptocurrencies market no trading, investment and holdings are safe because cryptocurrencies market totally standing on thin air marketing systems. Most of the people in cryptocurrencies are involving with own risks.  Decentralized Finance projects also Very risks because it a permission less system where no third parties presences.

[Casual]

If you want to invest in cryptocurrency, you have to take some risks. Currency This project currently has a lot of investors which is why its popularity is so high. In the meantime, many have benefited by investing. So anyone can if they want to invest in it.

[Casual]

In cryptocurrencies market no trading, investment and holdings are safe because cryptocurrencies market totally standing on thin air marketing systems. Most of the people in cryptocurrencies are involving with own risks.  Decentralized Finance projects also Very risks because it a permission less system where no third parties presences.

Yes, you are right. In fact, there is no need for a third party to transact through it. That leaves a lot of risk. Even after that it is seen that many people have invested in it. By investing in it, it has been seen that investors are more inclined towards it as they see more profit in a short period of time.