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

TL;DR

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

Key Insights

• 🫢 Choosing the right cryptocurrency chain is crucial based on your investment budget to minimize gas fees and maximize profits in DeFi.
• ⛓️ Lower gas fee chains like Matic, Harmony, Aurora, Celo, Osmosis, Solana, and Cosmos chains are ideal for smaller investments.
• 🫢 Binance Smart Chain and Luna can be considered for larger investments, but be cautious of fluctuating gas fees.
• 🫢 Ethereum is best suited for long-term investments with significant budgets, considering its high gas fees.
• 🪙 Farming and using stable coins can be effective strategies to mitigate risk and maximize profits.
• 🧑‍🌾 Avoid over-diversifying and chasing every opportunity; focus on a few farms or positions for better management.
• 🤑 Don't be afraid to pass on opportunities, as there will always be new ones. Making more money can sometimes mean not taking a risky deal.

Transcript

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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.