Since the DeFi boom in 2020, the cryptocurrency space has snowballed, with more innovations on the horizon. Several people have jumped on the “DeFi bandwagon” with the hopes of making a high ROI. Unfortunately, newbies in the cryptocurrency space are usually victims of “scam” DeFi projects in a bid not to miss out on opportunities. With the profits and ROI that many people have obtained from cryptocurrency investment, it is difficult for new users not to be caught up in a frenzy.
Before investing in a new DeFi project, conducting extensive research and reading on the token in question is critical. According to Investopedia, exit scams in the cryptocurrency sector occur when cryptocurrency advocates abscond with investors’ money during or after an initial coin offering. Therefore, it is vital to invest in profitable coins with practical use-cases and long-term offerings. This article will show you the important factors to consider before investing in a DeFi project, as well as valuable suggestions on which tokens to consider in the coming year. Let’s get started.
What You Should Consider Before Investing
1) Joining An Online Community: The cryptocurrency space moves at a breakneck pace, and you risk falling behind if you don’t keep up. As a result, joining an active online community of crypto enthusiasts can be very beneficial, as news moves quickly within these circles. Additionally, Reddit and Twitter can be used, as cryptocurrency enthusiasts are very active and widespread cryptocurrency discussions on such platforms.
2) UNDERSTANDING THE INDUSTRY: As a new investor, you must learn about other cryptocurrencies besides popular ones like Bitcoin and Ethereum to understand the industry you are attempting to enter.
Furthermore, it is critical to investigate the concept of blockchain technology, which serves as the foundation for cryptocurrencies. Some aspects of blockchain technology may be challenging to understand if you do not have a technical or coding background. The critical thing to remember is to understand blockchain and how it works if you must learn cryptocurrencies.
After you’ve read up on other cryptocurrencies, you can choose one that you believe is worth investing in by considering how it uses blockchain technology and what distinguishes it from other projects in the cryptocurrency space.
3) Get In Before the Smart Money Gets In: This is a common phrase in the virtual currency industry, and it essentially means that “timing is everything” in the cryptocurrency space. You would have taken notes on one or two currencies worth investing in after doing your research and being an active participant in various online communities.
Because the cryptocurrency market is highly sentimental and volatile, the next step is to time your investment. Positive and negative news can immediately impact cryptocurrency prices, so it’s always a good idea to keep an eye on what’s going on in the space before investing.
Introducing CODI
CODI is a truly innovative project worth exploring. CODI is an ecosystem comprised of three primary products: the Launchpad DEX, the Decentralized lending platform, and the NFT marketplace.
CODI is working hard to build a robust launchpad DEX on the fast and scalable Solana Blockchain; CODI users would be able to invest in the most promising new DeFi projects. New DeFi projects will be able to raise financing from committed CODI investors at the same time. CODI’s IDO Launchpad, COpad, recognizes that there are numerous DeFi projects on the market today, but there is a “trust barrier” in picking which DeFi project to invest in. Many new DeFi projects prey on investors by posing as respectable and trustworthy projects to take their money. CODI has established a screening method for DeFi items before they are posted on the launchpad DEX. As a result, new DeFi projects have the potential to scale and attract users who share their vision and aims. Our users have the opportunity to invest in the best new DeFi startups before they are listed on other exchanges.
The CODI Decentralized Lending platform will be a non-custodial liquidity market platform, with users having the option of participating as either lenders or borrowers. Borrowers will be able to borrow using their digital assets as collateral, while lenders will provide liquidity to the network while earning passive income from deposits. The goal is to build a system with a DAO governance structure that will allow platform users to manage it. That is a lending platform that does not rely on centralized control or a ‘third-party.’
CODI also plans to create the Solana blockchain’s first layer 2 for NFTs, allowing artists and collectors to trade NFTs fast and safely. As a result, the CODI community will have access to the finest NFTs, with low transaction prices and quick processing. Furthermore, since this platform is built on the fast and low-cost Solana blockchain, users will be able to mint, collect, and trade NFTs without concern for the platform experiencing long transaction times and excessive fees.
Conclusion
It is critical to remember that the cryptocurrency market is volatile, and there is no guarantee of success when investing in the sector. For every person who has profited from cryptocurrency investment, thousands more have lost money. Therefore, it is essential that you conduct extensive market research and invest an amount that you can afford to lose if something goes wrong.
You can join the CODI community through any of these:
Twitter: https://twitter.com/Codi_Finance
Discord:https://discord.com/invite/kEw8RkMU
Telegram:https://t.me/codi_finance_community
Website: https://codi.finance
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