How to Invest in DeFi? Why is buying tokens of popular decentralized platforms less risky? What do you need to know before purchasing unknown altcoins? Read in our new LATOKEN review!
Decentralized finance (DeFi) has grown in popularity over the past year. This is indicated by an increase in the number of searches, according to Google Trends. It may be due to the high profitability of some DeFi projects. For example, the price of the UFO Gaming token has grown more than 100 times in just four months. However, investing in decentralized finance comes with increased risk. Let’s see if it is possible to reduce the risks when choosing DeFi tokens. Read in our new LATOKEN review!
Strategy for beginners. LATOKEN review
One of the safest and easiest ways to start investing in DeFi is to buy management and native tokens of decentralized platforms, such as Uniswap, PancakeSwap, Compound, and so on. The industry’s growing popularity has a positive effect on the value of such tokens, so crypto enthusiasts believe that in this case, they might count on speculative income.
By the way, you can always buy these tokens on the LATOKEN exchange!START TRADING UNI START TRADING COMP START TRADING CAKE
Portfolio formation. How to invest in DeFi?
When creating an investment portfolio from DeFi tokens, it is necessary to ensure the minimum correlation of assets. As an example, cryptocurrencies in such a portfolio can be divided by capitalization level:
- high (over $5 billion);
- medium (from $250 million to $5 billion);
- low (less than $250 million).
With a conservative approach, 50-60% of the portfolio can be assets with a high capitalization. Since there is generally very little information about projects, it might be worth investing only in understandable ecosystems and not counting on “X.” However, keep in mind that DeFi projects are highly volatile, and LATOKEN does not provide any investment advice. Do not forget that when dealing with cryptocurrency, things can turn out to be completely unexpected.
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.