It’s easy to be drawn in by what looks like, at first glance, a great decentralized finance (DeFi) project. Indeed, DeFi offers a wealth of opportunities compared to traditional finance (TradFi).
But in the world of DeFi, not all tokens, projects, or communities are made equal, and some DeFi users have been burned in the past.
Examples of decentralized finance platforms hacked due to lack of technical oversight suggest it’s wise not to take anything at face value. Indeed, losses across the cryptoverse have totaled nearly $1 billion and affected nearly 2,600 platforms since 2016.
However, you can avoid being burned at all if you Do Your Own Research (DYOR)! Allow us to show you how to DYOR while avoiding being overwhelmed by the ever-changing world of DeFi…
Are You Doing What They Say … or What You Know?
It’s easy to drown in the media’s hype about crypto-related topics and decentralized finance projects.
After all, the blazing hot cryptoverse attracts all kinds of phonies: FOMO-inciting mofos, half-baked ‘all-time-high’ claims for coin values, and promises of quick ‘trip to the moon’ value flights.
This is why it can help to keep in mind the golden rule of investing: if it sounds too good to be true … well, you know (and knowing that already helps a lot).
Even if you haven’t developed the skepticism of someone already scarred by a hacked dApp or pumped-and-dumped crypto coin, developing a critical posture is crucial for anyone who wants to build wealth.
How to Use the Right DYOR Resources
Social media, blog posts, and DeFi-related articles are all solid resources for sizing up potential projects to join.
A worthwhile DeFi project will be active on social media, such as Telegram, Discord, and Twitter, and it will tend to publish well-grounded content on its systems and goals.
But be wary of what you find on social media, especially on Twitter. It’s very easy to fall prey to shills—so much so that specialized apps have even been suggested to help users wade through them.
Also important is ensuring that the social media platforms of DeFi projects in question don’t feature obviously dodged questions by leaders or toxicity among members.
Staying Current While Riding the Wave of DeFi Developments
News about DeFi projects to invest in should always be part of your research, and established reference sites such as CoinGecko are often the source of essential information. You’d be making large strides just by checking out this one website daily.
Be careful, though—some rate listings have features requiring critical thinking, such as a button with “Prediction” for each cryptocurrency listed. So even a common, primary reference feature such as a rate listing can still have content that’s potentially biased or at least needs more research.
Starting Your Research Right With Pillar Wallet
Pillar wallet is a DeFi project that aims to add unique extra features to the crypto-related news it showcases. Pillar Stories are not only reliably curated, but they’re also continuously updated in a carousel of links conveniently set at the top of the app’s home section. What’s more, also riding the carousel of curated insights are multimedia-enriched lessons, step-by-step tutorials, and other tools to help you learn, ultimately, what DeFi projects to invest in for secure, maximal gains.
If you start your research with Pillar Stories, you’ll likely end up using them as a home base for further research, with all the tools you need to learn and earn funneled into one compact, complete experience.
But don’t just take our word for it. DYOR and check us out yourself!