While MoneyMade generally considers such sources to be reliable, MoneyMade does not represent that such information is accurate or complete, and MoneyMade has not undertaken any independent review of such information. The information contained herein regarding available investments is obtained from third party sources. The investments identified on the MoneyMade website may not be purchased through MoneyMade rather, all transactions will be directly between you and the third-party platform hosting the applicable investment. MoneyMade is not a registered broker-dealer or investment adviser. The best advice is to learn what red flags to watch out for and refrain from ever clicking suspicious links or revealing your wallet key to anyone. Without well-established oversight from federal regulators, there’s no one watching the backs of DeFi investors-except for the crypto community itself. Since the technology is still so new, bad actors are usually long gone before the victims can figure out what happened. Crypto scams are on the rise across the fintech industry, but they are particularly ruthless in the crypto world. While crypto enthusiasts prefer the anonymity this lends them, some people may feel less safe. Anyone can see and trace all interactions, but there’s no way to pin one person’s wallet code to a Social Security Number, driver’s license or other identifying information that could help out in the case of theft. Whereas traditional banks require basic customer identifiers known as “KYC protocol” (know your customer), DeFi only relies on the transparency of blockchain. We know-sounds a lot like normal banks, huh? That’s true DeFi investing is essentially an opportunity for blockchain users to come together, combine resources, and participate in the same types of financial services as good ol’ Wells Fargo.Įxcept, a world without middle men equals more efficiency and fewer fees for everyone and-according to hardcore crypto evangelists-could also open up access to lending for people who are unbanked or otherwise fed up with traditional financial systems.ĭeFi isn’t without risks, however. DeFi investing may include lending, trading or staking (aka locking up) your crypto in exchange for rewards and the opportunity to participate in liquidity pools where you can earn money on your participation. To start, getting savvy about where to buy and hold crypto can lead to some pretty astounding passive income yields, sort of in the same way that knowing where to keep your fiat cash can lead to higher interest rates and ROIs-but rates can often be 10x more lucrative with crypto. Beyond the decentralized rallying cry that motivates millions of DeFi consumers today, there are a hundred other reasons why people like investing in DeFi.
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