🤨Starting in DEFI??? 100$? 1000$? 🤨 | Summary and Q&A

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January 19, 2022
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Drake on Digital
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🤨Starting in DEFI??? 100$? 1000$? 🤨

TL;DR

Learn how to choose the best cryptocurrency chains based on your investment budget and minimize gas fees to maximize profits in DeFi.

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Questions & Answers

Q: What chains should I consider for a $100 investment in cryptocurrency?

For a $100 investment, focus on lower gas fee chains like Matic, Harmony, Aurora, Celo, Osmosis, Solana, and Cosmos chains. These chains offer transactions at a penny or sub-penny cost or even for free, making them ideal for smaller investments.

Q: What chains should I consider for a $1,000 investment in cryptocurrency?

With a $1,000 budget, you can also consider using Binance Smart Chain and Luna. However, be cautious of gas fees as they can cut into your profits. Some transactions on Binance Smart Chain can cost as high as $2 to $3, so manage your transactions accordingly.

Q: What chains should I consider for a $10,000 investment in cryptocurrency?

With a $10,000 investment, you can explore chains like Avalanche, Luna, Arbitrum, Binance Smart Chain, and even Ethereum, but be mindful of transaction costs. Avoid frequent transactions on Ethereum due to high gas fees, and consider long-term investments for maximizing profits.

Q: How should I calculate my gas fee allowance based on my profits?

A good metric is to limit your gas fees to 10% of your profits. For example, if your profits are estimated to be $1,000, aim to spend a maximum of $100 on gas fees. This ensures that your gas fees don't eat into your overall profits.

Summary & Key Takeaways

  • For investments of $100, focus on lower gas fee chains like Matic, Harmony, Aurora, Celo, Osmosis, Solana, and Cosmos chains.

  • With a $1,000 budget, you can also consider using Binance Smart Chain and Luna, but be cautious of gas fees as they can eat into your profits.

  • With $10,000 or more, you have more freedom to invest in chains like Avalanche, Luna, Arbitrum, Binance Smart Chain, and Ethereum, but be mindful of transaction costs to maximize profits.

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