You can make money, but you can also get wrecked real quick ⭢ especially if you jump in without knowing what you're doing.
Here’s a no-fluff guide to all the stuff that can trip you up ⭢ straight talk only
Crazy APY ≠ Free Money!
See a project offering “1000% APY”? Feels like you’ll be on a beach tomorrow, but here’s the catch:
⪧ could just be bait ⭢ they’re handing out tokens nobody actually wants
⪧ token price might crash 10x or 100x, wiping out all your “profit”
A lot of the time, that yield comes from new users joining in. That’s not innovation, that’s Ponzi.
I’ll just stake and forget it, easy money!
You throw your tokens into a pool, turn on “auto-compound” and dip for a coffee. Then boom:
⪧ the platform rug pulls
⪧ smart contract gets hacked
⪧ liquidity disappears.
Your token’s worth zero and the only place it's going is #memes heaven.
Pro tip: only use audited and trusted platforms (like #THENA , Aave, Curve etc.). Skip the random “5000% APR” no-name ones.
Impermanent Loss = Real Pain
Staked a pair of tokens (A and B)? Congrats ⭢ you just stepped into the world of “temporary but very real losses”
What’s the deal?
If one token pumps or dumps hard, the pool adjusts ⭢ and you end up with less than if you just held both tokens separately.
Hack: Stick to stablecoin pairs (like $USDT / $USDC ) or be ready for wild volatility.
Passive income” is not so passive!
Yeah, it’s trendy to say “make money while you sleep,” but let’s be honest:
⪧ you still need to watch the market and your farms
⪧ you gotta understand the tokenomics ⭢ where’s the value coming from, is there demand, how’s supply managed?
⪧ you have to read what you’re signing in #MetaMask ⭢ don’t just blindly click “OK”
Reminder: In #defi , “passive income” needs an active brain. Otherwise, say goodbye to your stack.
Connect wallet = bye-bye funds!
You connect your wallet to some shady platform just “to check it out”…
Next thing you know ⭢ scam contract has full access to your tokens. You won’t even notice when they vanish!
Tips:
⪧ only connect to legit sites
⪧ always check your permissions
⪧ don’t click random links in Telegram from “helpful strangers”
Rug Pulls still happen. A lot!
Project looks fire. Token’s pumping. Community is hyped. Then BAM ⭢ they pull liquidity, kill the site, nuke the Discord. That’s a rug pull.
No cure except experience and #DYOR (Do Your Own Research). No one’s handing out guarantees. The higher the risk, the harder you gotta think.
When you’re NOT gonna make it in DeFi:
⪧ you’re just chasing high % without thinking
⪧ you don’t research platforms
⪧ you don’t even know what token you’re farming
⪧ you don’t manage your wallet permissions
⪧ you ape into some “next big thing” made by an anonymous dev
When you actually have a shot:
⪧ you read, research and filter info
⪧ you don’t go all-in on one thing
⪧ you treat DeFi as a tool, not a casino
⪧ you start simple ⭢ like stablecoin LPs or lending on big protocols
Wanna survive? Stay sharp!
Wanna win in DeFi?
Think like a hacker, act like an investor and only trust what you’ve verified (@THENA etc.).
Thanks for reading 🤝
