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10 Things to do BEFORE Getting Into DeFi

If you're interested in getting into crypto, specifically decentralized finance (DeFi), here are TEN important pieces of advice to consider:

Educate Yourself: Start by gaining a solid understanding of the fundamentals of cryptocurrencies, blockchain technology, and DeFi. Familiarize yourself with key concepts such as wallets, private keys, public keys, smart contracts, seed phrase, and decentralized exchanges. There are numerous online resources, blogs, forums, and educational platforms that can help you learn more about these topics.


Research Projects: Thoroughly research different cryptocurrencies, DeFi protocols, and blockchain projects before investing or participating. Read whitepapers, check the team's background, explore the project's community, and analyze the technology's potential. Look for transparency, active development, and a strong community to ensure you're investing in reputable projects. Coin Gecko is perhaps the greatest FREE resource/you don't have to sign up; and it provides you with direct/reputable links.


Start Small: Begin with a small amount of money that you can afford to experiment with. The crypto market can be volatile, so it's essential not to invest more than you're willing to risk. As you gain experience and confidence, you can consider increasing your investments. In the beginning, you will lose money; from "slippage" to "gas fees" to sending coins to the wrong place. It's part of the learning process when doing things on your own.


Secure Your Assets: Take security seriously. Use hardware wallets or reputable software wallets to store your cryptocurrencies securely. Enable two-factor authentication (2FA) on all your accounts and use strong, unique passwords. Be cautious of phishing attempts, scams, and suspicious websites.


Diversify Your Portfolio: Avoid putting all your eggs in one basket - meaning one DeFi environment. Diversify your crypto holdings across different cryptocurrencies and DeFi projects. This can help mitigate risk and increase the potential for returns. However, diversification does not guarantee profits or protect against losses. It does mean that, at an opportune time, either good or bad, you have a greater likelihood to make something beneficial happen.


Stay Informed: Keep up with the latest news and developments in the crypto and DeFi space. Join relevant communities, follow trustworthy influencers, and subscribe to reputable cryptocurrency news outlets. Staying informed about market trends, regulatory changes, and technological advancements will help you make informed decisions.


Understand Risk and Volatility: Cryptocurrencies can experience significant price volatility. Be prepared for price fluctuations and understand that investing in crypto involves inherent risks. Do not invest money you cannot afford to lose and consider your risk tolerance before making any investment decisions.


Be Mindful of Scams: The crypto space is not immune to scams and fraudulent activities. Be cautious of any investment opportunities that promise guaranteed returns or seem too good to be true. Avoid sharing your private keys or sensitive information with anyone and be skeptical of unsolicited offers.


Start with Established Exchanges: When buying or trading cryptocurrencies, use reputable and well-established cryptocurrency exchanges. Research the exchange's security measures, user reviews, and supported currencies before signing up. Be cautious of decentralized exchanges (DEXs) that may have lower liquidity or security risks.


Participate and Learn: Get involved in the crypto community. Engage in discussions, ask questions, and learn from experienced individuals. Participate in online forums, social media groups, and attend blockchain and crypto events to expand your knowledge and network. There are always excellent "Twitter Spaces" taking place; as well as Business Anthropology's official website/blog.


Remember, this advice is not financial or investment advice, but rather general guidance for individuals interested in entering the world of crypto and DeFi. It's crucial to do your own research and consult with professionals before making any investment decisions. What is available to you in your region of the world? What are the best technological couplings for you specifically?


This article was written by educator, speaker, author, societal, cultural, and technology expert: Anthony Galima. (Anthony is the creator of Business Anthropology, the "Cryptocurrency Crash Course," "Hard Fork News," and member of "Los Jefes Investments." His latest book, "The Making and Unmaking of the Modern World" is a must read for anyone wanting to learn more about all things blockchain and web3.)

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