It’s a challenging and exciting time to pursue financial and personal growth, and I’m sure that you and many others are ready to face those challenges head-on. If you have been following the crypto movement lately, you’ve probably heard the terms “DeFi” or “Decentralized finance” mentioned more and more, and you might be wondering what exactly they mean and how they can benefit you.
Like traditional assets, decentralized assets (or cryptocurrencies - referred to as tokens) are surrounded by communities that push and pull investors into challenging situations requiring great attention to detail. These tokens are capable and accessible through understanding the decentralized (open) finance space. Let’s take a look at some of the key points to keep in mind as you start exploring the decentralized finance space:
Starting On The Right Foot
Knowledge of the cryptocurrency you are purchasing is important when making an addition to your cryptocurrency portfolio. You want to know it’s safe and approachable in order to share its purpose with your friends and loved ones. Moreover, it’s an opportunity for others to ask questions, discuss their discoveries, and share what they know (and don’t know) about the decentralized finance space.
What Is “FOMO?”
Fear of missing out or “FOMO,” is common when learning about new cryptocurrency tokens. It’s an exciting feeling to find a cryptocurrency that resonates with your financial and personal progress. However, keep in mind, it can be difficult at first to differentiate one type of cryptocurrency from another when starting your DeFi journey. For example, Mysterium is a decentralized VPN (Virtual Private Network) that enables users to communicate in an uncensored fashion around the world. Enjin is a smart contract platform (or a self-executing agreement) that aims to provide currency to gamers and game developers.
Numerous resources are available online that will help build your confidence and refine your understanding of specific tokens or cryptocurrencies. Researching keywords are especially important as they will help you to identify why a cryptocurrency token is used and how it works on the Ethereum blockchain (a decentralized software platform for building applications.) However, the excitement of discovering a new project or initiative can lead to hasty decisions. Taking the time to curb your euphoria and fully understand what your investing in is important.
What Is “DYOR?”
Do your own research, or “DYOR,” is another highly used statement you’ll hear in the decentralized finance community and abroad. There is a vast amount of information online, and one must approach important financial decisions with a collected attitude, factual data, and unbiased information.
Saying “DYOR” aims to increase the awareness of future investors, ultimately empowering those that have taken the time to fully understand the ins and outs of a cryptocurrency or token. When it comes to word-of-mouth recommendations, having a grasp on the underlying usage of a cryptocurrency will benefit those you share information with. Reliability will strengthen your willingness to share information, and in turn, can come full circle when you are in need of information yourself.
The Road Ahead
The growing innovation in the decentralized finance space is launching opportunities for people around the world to pursue financial freedom. In this pursuit, individuals and communities alike must take a measured approach when learning how cryptocurrency can benefit them. Helping a next-door-neighbor or introducing a new friend to open finance will take integrity and an open heart, but let’s take on this responsibility and keep opening doors so that others can explore this revolutionary space.
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