How to choose a DeFi platform

by in Crypto 101, Cryptocurrency For Beginners

DeFi

Now that the cryptocurrency domain has gotten so much hype between economists, a lot of entrepreneurs took advantage of the opportunity and founded their own DeFi project.

Now that there are so many options, how can you possibly choose one to invest in?

Luckily, we gathered here everything you should look for in order to find the best option for your needs.

1. Look out for authenticity

That should be your primary concern every time you want to use a service, DeFi or not. To make sure you are safe, you need to check these boxes before infesting in a project:

  • You can easily find information about the developing company or team;
  • You can find links to social media;
  • You have contact data to easily reach out for help when needed;
  • You can see a link to a detailed White Paper;
  • There are no promises that you can get rich overnight.

These are a must, and if one single box remains unchecked, it’s not a good sign, and you should retreat as soon as possible.

Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding

2. Make sure the platform is friendly

The more organized is the DeFi platform, the easier it is for you to find quick solutions for your needs. Human error is the most common reason why people lose money, so a simple mistaken button can radically change the outcome.

If you don’t want to experiment with this kind of situation, you need to make sure that you understand what each button does. And if you don’t, look for some explanation provided by the development team.

If everything looks chaotic and there’s nothing there to help you, then you shouldn’t take the risk.

3. Look for the team’s values

Technical things aside, a good DeFi project is one that is entirely centered on its community, providing what crypto enthusiasts truly need.

Trending: Finder: Bitcoin could hit $80,000 by 2025

The team of DeFi Coins, for example, chose to burn all of their tokens and participate at the pool with everyone else. That way, they increased the value of their token while they adopted an equal position with their clients.

If you take into account all of these things, then you should be set and start looking for the features you need. What are you waiting for? Start your DeFi adventure!