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The year 2020 in the digital currency market can be called the year of prosperity in the field of Defi. Atrium, as the growth platform for these projects, has benefited the most from the development of a decentralized economy. Investing in Defi is very rewarding. But sometimes we have seen sharp drop in the price of these projects.

In this article, we will introduce 9 strategies for capital management to get the highest benefit from the growth of this field.


Defy domain in the digital currency market


Financial markets have cyclical behavior and we always see periods of recession and prosperity in them. In 2017, the digital currency market was booming and there was a strong uptrend. After that, we saw a period of stagnation in the market; We witnessed erosive downward trends and a significant reduction in trading volume and money out of the market. But in 2020, two and a half years after the last bullish market, the development of Defy projects has once again started the bullish trend in the digital currency market.


In 2020, Atrium, as the market second cryptocurrency, snatched the lead from Bitcoin and became the focus of the cryptocurrency market. The number of transactions in the Atrium network, as well as the network fee, exceeded the bitcoin network. Defai projects were noticed by everyone and were able to attract new people and capital. For example, China's DeFi Link project with the digital currency Link ranked fifth in the market, higher than many of the old cryptocurrencies in the market. The Atrium ecosystem took over the market. Atrium experienced market leadership in 2017 with the growth of ICOs, and this year, with the growth of defai, it reappeared in the role of market leader. The big difference between Atrium 2017 and Atrium Today is that this network has changed fundamentally and also the projects that have been launched on this network are more mature than in 2017. However, we still have to be careful of projects that carry a very high investment risk so that the same experience of 2017, which caused a severe collapse and complete destruction of some cryptocurrencies, will not be repeated. Here are 9 tips for people who want to invest in Defay. Paying attention to these points will make us take more care of our capital and identify the investment risk in this area.

Do not follow everything

Perhaps the biggest hottest spot in the field of defense is Yield Farming. Protocols that reward suppliers in return for raising capital. This is a new way of earning money for digital currency activists. Since no investment will be risk-free, this area also has risks. The Yam Finance project, for example, raised $ 600 million on its first day. After that, there was a technical problem in the network that caused problems with the project management. After that, all the people who participated in providing liquidity for this project faced problems.


Difai is currently in the spotlight. Market leaders are optimistic about the future of the field, but not all of this should preclude careful research and investor scrutiny in selecting a project. Defy projects are profitable, but not all of them. When choosing this area, be sure to have a comprehensive personal review.

In the positive atmosphere created, bad projects also grow

In any market where excitement prevails, it will be a good ground for fraudsters. At some point, almost all currencies in the defense sector grew by several hundred percent. This excitement is the right time for fraudsters to arrive. Malignant actors are expected to enter the field if the upward trend of Diffie projects continues in the coming months. One of their usual tricks is to exploit big projects and come up with similar ideas. If you come across a project that poses no risk to you and all of their programs are focused on making a profit for you, avoid it immediately. There is no risk-free investment in the financial markets.
More information = deeper insight
Getting information on digital currencies and blockchain networks is undoubtedly the best way to deal with fraudulent projects. Be sure to pay special attention in choosing your study resources. Scam projects usually use a strong advertising team and may take over many media outlets and make it difficult for you to find the right and accurate content. For this reason, be sure to use reliable sources for information. But due to the ever-expanding media and the existence of diverse platforms, we will hardly face the problem of information poverty. Social networks and reading the opinions of users of each network can also give us a detailed view of the projects. Below is a list of reputable sources for DeFi projects:

DeFiPulse - one of the major platforms for providing information on Defai projects
Coingecko - Similar to Kevin Market Cap for Defy projects
Dune Analytics
Zapper

Have your own criteria

There is almost no shortage of information in the cryptocurrency market. Because it is decentralized, almost all information is available to everyone. But to check this information, you need basic technical knowledge. The first step is to know the words and their meanings.

Volume: Shows the volume of trades in a specific time period. The volume of transactions is a certain number of digital currencies that are exchanged over a period of time.


Total Value Locked: This term is usually displayed with TVL. TVL is a standard for diff projects that refers to the amount of capital available in a diff project. The capital managed by each project is called the TVL of that project and shows the total amount of capital locked in that project.

Dominance Rate: This index compares the market value ratio of a project with the total market value of digital currencies. This index is also used for defy projects. Among DeFi projects, Uni Swap currently has the highest mastery index with 19%. In fact, 19% of the total TVL of Defy projects are in the Uni-Swap project.

Fee: The fee that each user must pay to complete a transaction between DEFA projects.

Circulating / total supply: Total supply refers to the total available assets of a digital currency. In the case of Bitcoin, for example, the total assets are 21 million units. For all defy projects, the total amount of tokens available is a fixed number. circulating is the amount of assets in circulation of each digital currency.

Note the price of Gas

If you use the Atrium network, watch out for the price of Gas. Gas is the transaction cost in the Atrium network. The transaction fee in Atrium network is paid by Ramzarz Ether (Atrium). Because Diffie projects are launched on the Atrium network, all transactions are paid for with Ether. In recent months, transaction fees in the Atrium network have increased significantly, so pay attention to the price when making a transaction. If you are in a situation where you need to make a transaction, use resources that show the current state of the network. In the hours of the day and night, the network density is reduced and in such a situation, the transaction fee will be lower. Many sources provide such information to users that they can refer to the Atrium Network for a fee.

Recognize decentralized exchanges

Many activities and price increases take place in the foreign exchange market, which are traded in decentralized exchanges. Therefore, you should get acquainted with DEX or decentralized exchange and how to snake them. Naturally, if you are new to the digital currency market, the concept of decentralized exchange may be a bit confusing. Studying the guide of each of these exchanges and making a transaction with low capital can help you a lot. Among decentralized exchanges, uniswap has the most liquidity and is the largest exchange among other decentralized exchanges. Uni swap is a good place to start working with decentralized exchanges. The following are the names of the decentralized exchanges:

- cyber
- Balancer
- 1 inch
- Curve
- Matcha
- Mesa
- Bancor

Monitor your favorite projects

When it comes to investing in a Defy project, try to follow all the communities in that project. Follow the management team, the development team and all their user accounts on the social network. Participate in discussions and discussions in Miami, the fans of a network, and try to be constantly aware of what is happening around a project.

In the digital currency market, two social networks, Twitter and Reddit, are usually used more than other platforms. In addition, many networks have telegram channels and groups that contain valuable information. Try to find all the tools and means of communication of each network team and follow them all.

Beware of sharp price fluctuations

Prices in the digital currency market are changing rapidly. Sometimes we see the price of a digital currency increase tenfold, and a few months later we see a sharp fall in the same cryptocurrency. This is a feature of the digital currency market. So prepare for the sharp price fluctuations. These price fluctuations are usually not visible in any other market. This is a feature of the digital currency market. If you are considering a lower risk investment, reconsider your choice, this market is probably not the place for you.

Security; It is the key of this market

Maintaining security is always a priority. There is more need to pay attention to security issues in the digital currency market than in other markets. This market, and blockchain technology in general, is a new technology, and naturally has ambiguities for the general public, and this ignorance and lack of technical information has provided a good platform for fraudsters. Especially when choosing a digital wallet, make it your number one priority. Beware of phishing scams. Do not give out your private address or the phrase of your recovery when creating a wallet. Whoever has the phrase to recover a wallet will own it; So be very careful.

useful tips thank you ) personally i try to invest in credible dex projects i believe with nive financial model they can be successful

oh so u might be interesting in new stablecoin dex - xsigma, just announced and looks credible - they are backed by a public company

If you noticed the publication date of the topic (September 15), then I will tell you that most of the information is no longer relevant.
Yield Farming has now lost its relevance. And there are also many proven projects that you can invest in. And from the author's post, we can conclude that all investments in DEFI projects are risky.
And for security, the most budgetary Ledger Nano S wallet is enough

@OP, you need to include your reference links here. I am sure those you got those from some articles out there. And for me, one practical tip is to check first the foundation of the project, is it authentic or just copying other's platforms. Because when you dig further, you will see if they are really capable of running a true DeFi platform. But if you will see on their homepage that they are in beta, doubt if they can truly create a working platform.

People have made big money from recent defi craze but there are even more that lost due to a lot of rug pulling and exit scams that we saw. Various defi projects took advantage of the anonymous decentralized paltforms to scam people so this must he stopped to really make defi a real world practical product.

In 2017, more than 95% of ICOs were fraudulent.
You write that people have lost a lot of money because of a large number of scammers.
What if you understand the reasons?
Most of DEFI projects were not traded on centralized exchanges, they were mostly traded on uniswap.
Users did not study the rules for using the service and bought tokens with a similar name. And it was necessary to check the addresses of smart contracts.

(GUIDE) How to trade on uniswap correctly (EN)
https://bitcointalk.org/index.php?topic=5270415
I don't understand why we accuse DEFI of users not following security rules.

Same as 95% of 2017/2018 ICO turn out to be scams, to many DEFI projects slowly or fast show their bad intentions. It is very dangerous zone of crypto right now.

Im afraid this isn't gonna happen anytime sooner. That's how dex works for some of those traders however the best way to safety is avoid as much as possible shady projects introducing defi. There are some so called degen players that are betting their money with this sometime they win and lose, but of course its always good to have a DD or thorough researched. YFI started to be an anonymous project and later on transformed into a good  one. It's just a matter of studying a good defi concept.

1. tip
Avoid defy
2. tip
If you decide to ignore first rule never invest more than you can afford to loose

Yeah, that's right, I was about to say that. Defi is evolving, and during the write up, it is really making a lot of noise and making people a lot of money. But a lot has change already, the risk is greater that once you go in, you might lose your money because of so many hacks and scams going around.

So if anyone still wanted to join the hype then think again, don't put all your money, observe and don't be greedy and educate yourself specially those scams that is very rampant in Defi right now.

can u share any link or smth about them to learn more?

I agree that it is very dangerous for newbies to become interested in the newer projects in the defi scene. Just like the ICO, you've got it mate.
Very much harder this time because after the success of the first defi projects, there's a bunch of projects that come in and investors are seeking to see that most of them will also become successful.
But the fact is that they don't.

Where do you find scams? Perhaps you buy unknown tokens and want to get 10000% profit :)
I always warn users not to buy unknown tokens, but to invest in projects that have been verified and are traded on centralized exchanges.
There has always been and will be a lot of fraud in the cryptocurrency field, you need to be careful  not only with DEFI projects.

Investing in De Fi according to the classic scenario-buy cheap sell expensive can be considered the most frequent. But the main difficulty of such trading is the volatility of new coins is simply huge! You can earn a lot of money and just as easily lose it.

Absolutely great. It was then I invested in defi presale because of current heartbreaks. I now prefers buying after presale than during presales. It dumps immediately they provide liquidity so buying at that range will help you benefit when they want to pump it back to presale price instead of buying at presale. This isy little trick though.

People who are new to defi and yield farming i would suggest to stay away untill you have enough knowledge of how everything works or you can use other platforms that will manage your money and pay you your yield farming profits automatically, there are many such platforms available like swissborg and yield app is the one im looking forward to but it is still under development.

Avoid scam DeFi instead since there’s a lot of good projects on DeFi and they are successful now. Investing is about risk so literally, if you don’t want to lose money then don’t invest at all. Any kind of development in cryptomarket consist of risk, and only those who are willing to take such risk will succeed.

For me the best way to invest in DeFi  is always better to participate in the launch of a new project and get rewards in form of tokens but always beware of scams.

It is crucial to make research before buying any tokens
DeFi projects grew in terms of popularity in 2020 and many people are using that to scam investors and traders.

I think this time is still not a right time to invest on Defi projects for long term yet, just should invest for short time because in my opinion, there is no certainty or clarity on this time, it looks like ICO projects before. So, let's wait and see how the more certainty signal.

https://xsigma-lab.medium.com/meet-the-brains-behind-xsigma-defi-d2e89928f3f7 I read here about them

thank you, nice tips. as for me i prefer to invest in credible dex projects coz i strongly believe they will succeed in nearest future and replace centralized exchanges soon

Dropping of price sharply is never new thing to us in this space, it happens most of the time when team or investor remove their Liquidity leaving others without liquidity.
Most of the time, these DeFi are not well audited as they claimed. It has made many loose their money especially ones that are always been greedy. The recent attack on Cover protocol comes to my mind, it dump almost 99% with an excess coin in supply.
There are other that has happened in the past such as kimchi, yam, sushi was deliberately dumped by the team but it later survived due to some influence and interest on the platform.
Always proceed with caution on this DeFi, cool money can be made here and at the same time can be lost, if not all :'( :-* :-*

also believe this) i'm researching a lot of interesting dex projects - recently  researched a new stablecoin dex with nice returns - xsigma, looks credible

yes, cool guys, just read a news that one of the development leader from Ripple joined the team. ans they are backed by a public company

I don't have any idea about investing in Defi, except before this year I heard YFI if I am not mistaken it surpassed the price of bitcoin
then many of the community invested unto it then in the end they cried because the price of it was totally down from 33k$ almost if I am not mistaken and now Bitcoin was in period of rally to spike its price value in the market. SO, thanks for this very nice tips you gave it here dude.

DeFi made a lot of hype and a lot of them sprung up within a very short time, however today, can what was said about DeFi months ago ( that is about how profitable and revolutionary it is) be said today? I don't think so, or rather a very small percentage of them are actually with a good prospects, as for others, it is either they are hacked, the team exited scam or they are dead. Which then brings us to the Importance of researching all these projects to be sure they have the users at heart through building trustworthy working products and services. Who knows, very soon a new trend will start and what happened in Defi may happen again. Lastly, as for Dex; the idea to have more Dex is good in order to be more sure of your asset security but yet again, the way they are springing up nowadays calls for everyone to be careful as scammers do not miss out on any opportunity.

Can't deny that fact that DeFi scam is just like ICO scams, the whole idea is repeating other legit DeFi projects use cases, here is my own way of investing on DeFi projects

1. Go for old DeFi projects that have existed before 2020 or before DeFi hype started
2. It's better to go for DeFi projects that are introduced by top exchanges probably through IEO because I believe top exchanges are good at keeping their reps safe
3. DeFi projects must have high quality use case and also the team must be visible and have pro blockchain experience, transparency on the other hand but be present

2nd. Defi projects are high risk high reward. Returns are crazy if you got in time on good project.