Topic: What do you say about this investment plan - page 3. (Read 632 times)
maybe you can do some research first but after seeing luna and the community then luna collapses, then of course it makes people doubt and it's very difficult to tell what's good and what's not.for me personally it is difficult to determine if there really was a case like the second luna or ftx a few months ago.
I don't think it's a good idea for a DeFi projects to still be into stablecoin so I think your decision to avoid such projects is good.
Stablecoin requires much more than other crypto because it is not supposed to be affected by market forces, and this is going to be unsustainable in the long term because eventually market forces will break in and cause it to de-peg.
Stablecoin requires much more than other crypto because it is not supposed to be affected by market forces, and this is going to be unsustainable in the long term because eventually market forces will break in and cause it to de-peg.
Most of the time, early investors get good returns - regardless of whether the project is DEFi or not. The main thing is not to put your money in pools for the long term, as the interest earned may not compensate for losses due to the likely drop in price. There are many defi projects right now, and only a few will survive.
as long as you can take advantage of the moments and trends that occur, you will get good profits, indeed for the long term it is not good to hold, considering that this will only happen in a momentary trend. if the trend is over and there is a decline, it will be difficult to recover, especially if we keep holding it, it might just turn into trash, therefore we must be able to analyze properly and be able to take advantage of the situation 
Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.
Reading from what you wrote it looks like you yourself are not sure what you want to invest there. what if I offer you a suggestion for your investment?, you should look at a project that can convince you to put your money in it, secondly you look at the prospects for the project, if the project has a clear roadmap for future use cases, and there is a good team and developers great you should invest there. I think this is a little shadow that I gave, you can find it yourself 
Most of the time, early investors get good returns - regardless of whether the project is DEFi or not. The main thing is not to put your money in pools for the long term, as the interest earned may not compensate for losses due to the likely drop in price. There are many defi projects right now, and only a few will survive.
Actually a person research about certain projects if he get positive feedback then he desires to make investment in it and if he does not get any positivity then he do not want to make investment in it. Investment in every project is risky the important thing is that you should manage that risk and you should have create idea and action according to that risks. You should know that not single project is safe completely it up to you that how much money you put and for how much time you keep it hold so making concept about defi project is very useful before participation.
Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.
Creating a stable coin is not as easy as some claim and we have many examples of this, if there is a bug on the code then hackers can use it to steal a great deal of money, the trust on the coin is lost and then it collapses, this could also happen if the developers are found to be lying about their reserves and the ratio at which their stable coin is backed by fiat, and if the difference is too big this alone could cause the stable coin and the whole project to collapse.Hmm, Defi + stable coins in one sentence? doesn't sounds right to me. So I will agree that there are a huge risk, or shall we shall red flag seeing this kind of marriage. Defi alone for me has huge risk already, it might be one the latest hype, but still though, I'm not that comfortable and I will say that this hype might die sound. And we all know that there are a lot of pressures too, from regulatory body about stable coins, so it's going to be a double whammy for the developers and the people behind the project on how to get a balance between the two, in my opinion.
Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.
Creating a stable coin is not as easy as some claim and we have many examples of this, if there is a bug on the code then hackers can use it to steal a great deal of money, the trust on the coin is lost and then it collapses, this could also happen if the developers are found to be lying about their reserves and the ratio at which their stable coin is backed by fiat, and if the difference is too big this alone could cause the stable coin and the whole project to collapse. 
Is it safe to invest in Defi projects that has it's own Stablecoin?
Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.
Is it safe to invest in Defi projects that has it's own Stablecoin?
Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.
Is it safe to invest in Defi projects that has it's own Stablecoin?
Yes, but it's decentralized stablecoin. Maybe it's another niche to eliminate the reliance on traditional stablecoins being controlled for regulation. We can't be reckless with continuing to believe in tether, the experience of BUSD could be a clear proof of its risky situation. I'm also learning about a project that builds defi finance, and has its own stablecoin backed by bitcoin.
If necessary, we can talk to the developer or his team to get a definite answer about the clarity of the project before we invest.
That's not possible, no developer or project team will ever tell you they're going to scam you. They will say what you want to hear, the project will run for a long time, and profit up to hundreds of percent...You are so naive, they create the project also with the purpose of making profits and profits from investors like us. If they said they would scam you, would you still invest? Financial markets are where we take each other's money, so no one can tell you when they will take yours.
Do your own research with your own experience and knowledge, and don't listen to anyone, especially the project creators, because they want you to invest in their project.
Even though the Defi project is safe to invest in, it still carries risks and we must be prepared for all the risks. If you feel the project is unsafe, you better not try to avoid the risk of fraud in the future.
Such projects can always tempt investors to try to join their projects with the promise of getting big rewards. But we as investors must be wise in reacting and better find out more about the project. If necessary, we can talk to the developer or his team to get a definite answer about the clarity of the project before we invest.
Such projects can always tempt investors to try to join their projects with the promise of getting big rewards. But we as investors must be wise in reacting and better find out more about the project. If necessary, we can talk to the developer or his team to get a definite answer about the clarity of the project before we invest.
Investing in DeFi projects with stablecoins carries risks, requiring careful evaluation of potential rewards. Stablecoins can stabilize platform tokens and increase their usefulness, but smart contract bugs, liquidity issues, regulatory uncertainty, and market volatility pose risks. Different stablecoins have varying risk profiles based on collateralization and underlying mechanisms, with some backed by fiat currency and others algorithmically stabilized. Conduct due diligence before investing.
Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.
Having a stablecoin or not should not be your determinant. You have to do backside research on the project, check out the team members if they are being honest and talk to the advisors for their opinion before putting your money in. Every crypto project out there has been promoting itself as the best but literally zero have gone up in the last 2years. Hence my opinion is to observe before investing. Most DeFi projects have not done well. Watch for at least a couple of years before jumping onboard.
Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.
If you don't feel comfortable with the project that you want to invest, Just don't or you will regret it whenever a bad thing happen to that project. It is proven and tested that not all stable coins are safe and the mechanism behind those stable coins are different and not every mechanism that we think a genius way to peg a stable coin is effective in real life. We have seen it with our own eyes about Terra own stable coin being deppeged because of investors unforeseen situation which others took advantage of. Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.
It depends on the stablecoins mechanism on how they peg their token. The reason why UST failed is because the founder sell its stablecoin in discounted price while it’s mechanism to peg to $ involves the value of Luna that automatically adjust the supply in able to peg UST to dollar. A normal stablecoin that backed by real $ in the bank with proper audit is safe. Luna is just so dumb to launch a stablecoin that pegged on their own token that is not stable.
DeFi is on the brink of downfall due to the worsening global economy. I really doubt that investing on DeFi is still a good idea because crypto market is dumping which means that no one is willing to lend money is worst economy.
...I will always used USDT or BUSD when the need arises.
You are obviously not familiar with the problems that BUSD had after the SEC approached Paxos about stopping the issue of this coin. Whether BUSD will be traded on exchanges in the future is not yet known for sure, but it is already known for sure that Paxos, which is the issuer of this stablecoin, has already stopped issuing BUSD and started burning.
Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.
Maybe it's best to do your own research regarding investing in def projects. Now, when you see that it's okay and you think you're comfortable, make a decision based on how you feel.
Because you yourself need to learn and know what to do when choosing a token or coins that we intend to buy here in the field of crypto space. After all, you haven't mentioned what kind of def projects are these/
Is it safe to invest in Defi projects that has it's own Stablecoin? There is one project I like but the thought of having a stablecoin makes me feel unsafe about the project, we all know how such projects always end up, the mess with Luna and it's stable coin still lives in me till date.
My point of view is not just a defi and stable coin, it seems that the current investment is not good because everything is in a market that is not doing well.
Invest in the top 10 coins and follow the market so you know when to enter
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