Investing in decentralized finance projects unlocks tremendous profit potential. However, that only applies when contributing money to worthwhile and long-term projects. Figuring out which options to invest in is tricky, but we have some helpful tips and projects to look into.
Always Look At The Basics
Like investing in cryptocurrencies, contributing money to DeFi projects should not be done willy-nilly. Although there is always a chance you will end up in profit, figuring out what makes projects tick and gives them value remains critical. It is better to start with the basics rather than looking at numbers like market cap and token value.
The first objective is figuring out whether the idea has potential. Many things have been tried and tested in decentralized finance, with some proving more successful than others. Assuming the idea is viable, it is crucial to look at competitors and how they perform. If one player dominates a segment in DeFi, competitors will have to prove something enticing to pose a real challenge.
Second, figuring out who the team is and whether they have a proven track record can help make better-informed decisions. Unfortunately, in DeFi, a world where transparency reigns supreme, anonymous teams remain a risk factor. Nevertheless, a track record is essential for those serious about investing – big or small amounts. If that does not exist, it is best to avoid projects altogether.
Third, and perhaps most important, is figuring out whether the project and its token have growth potential. There is a growing focus on cross-chain support to unlock more liquidity and expand the user base in the current landscape. The days of Ethereum-only DeFi are long gone, even if it remains the most powerful ecosystem for smart contracts and DApps. Defi projects with a cross-chain approach can be worthwhile, assuming the overall concept is sound and offers long-term potential.
Invest In Ecosystems And Infrastructure
One of the logical choices for DeFi investors is not to look for high APY or APR but rather solutions that provide infrastructure or broader ecosystems. For example, a liquidity pool on a DEX is very different from a solution like Crypterium, which supports over a dozen crypto assets through its bank-like ecosystem. Users can explore yield farming with high APR and buy crypto with convenient payment methods, acquire a free Visa card, and much more.
Building an encompassing cryptocurrency ecosystem is no easy feat. Different users have different needs, yet it remains crucial to cater to both novice and advanced customers alike. Projects like Crypterium acknowledge the need for convenient onboarding, acquisition of crypto assets, and direct usability. Whether one wants to invest in crypto, put assets to work, or spend them in the real world through the virtual or plastic debit card, all options are at your disposal.
Investing in Crypterium can be done by creating a portfolio or obtaining the CRPT token. The team burns CRPT tokens every month, depending on overall transaction volume. Additionally, up to 30% of all CRPT tokens will be removed from circulation in the next two years, with over 2.89 million tokens taken out of rotation already.
Crypterium provides high-yield savings solutions with up to 15.6% APR for those who already own cryptocurrencies. These earnings accumulate passively, and the current rates are much faster than any other solution on the market. There are numerous opportunities to make money in DeFi, and Crypterium combines the best options under one banner.
NFTs With DeFi Qualities
Another intriguing option to explore as an investor in the world of non-fungible tokens. Not just for the profile picture potential, but several projects offer DeFi qualities. The Presidents marks an intriguing NFT collection on the Binance Smart Chain, consisting of 20,000 tokens depicting 50 presidents worldwide. More importantly, owning an NFT in this collection provides access to GameFi opportunities, governance tokens, and various decentralized systems.
The upcoming game that is part of The Presidents’ ecosystem will offer a prize of up to $250,000. Users need to create a team of 3 or more President NFTs, creating an immediate incentive for users to mint more than one non-fungible token and hold on to it for the future. Moreover, The Presidents NFTs have upgradeable skills through their traits to be used in the War of Morale GameFi solution.
Interestingly, the team can select holders of The Presidents NFTs to sell their non-fungible token at a 10x-100x profit after all tokens have been minted. It is another incentive for users to mint multiple NFTs and spread the word about the project. Another financial incentive is the referral link. If you invite someone who mints an NT through your link, you get 10% of the purchase directly in your Binance Smart Chain wallet.
One more DeFi aspect regarding The Presidents is its “pools” option. Once all 20,000 Presidents are minted, users can claim BNB rewards if they own 50 or more Presidents. The cashback of the minting fund can be as high as 7%, which is distributed equally to all eligible users based on their proportional stake.
There are many reasons to invest in decentralized finance projects. Figuring out their purpose, long-term goals, and revenue potential is crucial before making any financial commitments. The more services or utilities a project provides, the better its chances of succeeding long-term. Moreover, one should not overlook the option of putting crypto assets for passive revenue gain either.
Please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. CryptoMode is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.