Everyone who comes to DeFi should understand that the security of their assets depends 80% on their approach and actions and 20% on external factors. Today we will talk about the basics of security in DeFi – risk management.

In the first two articles (firstsecond) we have covered the technical side of security in DeFi. By following these simple guidelines, you can save tens and hundreds of thousands of dollars.

Management of risks

 

The e-currency market is at the very beginning of the journey. We are lucky to see him grow up. There is an opportunity to become the author or founder of a new direction in the blockchain. For 20 years, the whole world has mastered the Internet and transferred its business to the network. So, crypto enthusiasts believe that in 10 years all payment transfers will be carried out in the blockchain.

But now we are dealing with a fragile unformed system. The prices of crypto-assets are highly dependent on opinion leaders, on speculation on the exchanges and on the decisions of politicians.

What else do you need to know about safety and what rules to follow?

First rule

 

“Diversification”. Investing your savings in one asset is dangerous. Eggs should be kept in separate baskets. Choose for yourself 10, 20, 30 different assets. If some of them fall in price or depreciate, then the rest will compensate for the losses with their growth in value.

Second rule

 

Deal with those assets that you have personally figured out. It often happens that a beginner reads information in chats and makes emotional decisions based on the opinions of “pseudo-specialists”. The result in such cases is 50/50. Some are lucky, some are not.

Read the “White sheet” of the project ( white paper ), get to the bottom of it. What are the plans for the project? They promise to make everyone happy in the near future, or they have a specific roadmap with dates for events and activities. What the creator of the project writes on Twitter. We need not only an idea, but also a specific plan for its implementation. News about listings on new exchanges is also important.

Rule Three

 

Learn. Find a good specialist, do not spare money for it. The best investment is an investment in your education. Money can be earned, lost, and then earned again. You will never lose knowledge and experience. Anyone who regrets 100,000 rubles for education subsequently loses millions of rubles on mistakes.

Fourth rule

 

“Money loves silence.” After investing money, do not rush to write about it on social networks. You should not post screenshots of your transactions, you can always see logins and wallet numbers in the background. If you have earned, do not report it to the whole world. That will be safer. Let the world know about your success in the future from an article in Forbes magazine.

You’ve learned the four rules that make DeFi secure – risk management is in your hands. I wish you success!