What No One Tells You About DeFi

If you are one of those who spend hours and hours looking for platforms and protocols with high yields or YouTube videos to light your way, I’m sorry to tell you that ,but you are not one of us, so I will ask you to stay with me and read this article, because I will tell you things that no one have ever told you before about defi. I am sorry to tell you that you are one of those who look for shortcuts to win what they do not deserve and sooner or later karma will do its work, don’t doubt it. I hope that from today, once you finish reading the trilogy I have prepared, you will avoid shortcuts as they never end well. I used one and I was able to stop in time to avoid falling off a big cliff.

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The operational part in DEFI is the easiest part to do and the one that occupies the least time, no more than 15% of the whole (for security, verification and multi-signature issues). The other 85% of my time is spent reading and studying people who have been making great contributions to space for many years, traveling to be able to collect as much information as I can from the entrepreneurs who lead large projects in the sector, and pass it on to my team in the form of an investment thesis, analyzing on-chain data from the wallets I follow for their ability to generate money, move prices and set trends, and listening to what the market says through the weekly candlestick chart (I like the vision frame as if I were looking at the moon with a large telescope).

As you can see YouTube and the most popular and commercial DEFI videos are not part of my routine. If you want to be a professional you have to act like a professional to make money, be consistent and earn the recognition of others, entertainment is not part of the formula.

Let’s go with the routine that I perform for Belobaba, which my team replicates as a rule and procedure. We know that the success of the fund and customer satisfaction lies in working as tuned as an orchestra, where everyone has to be a virtuoso with his instrument.

1. Security: 

“Before making money, be careful not to expose and lose it”

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The wallet that each user uses will depend on his tastes and preferences, in this sense each one is free since this is how it should be, the internal rule of obligatory compliance is that it has to be “Non Custodial”. The wallet should also never be used alone (I want to thank the excellent work in this regard that Antonio Sanchez has done with all of us and with the students of bit bcn), we have several tools and technologies at our disposal to provide it with a solid armor, in our case a hardware wallet with backup (to work only with the funds that we are going to expose to the market, leaving the main capital safe from the market), multi-signature for transactions >250K and a second hardware wallet for situations of failure, breach or loss of the capital (surely YouTube has not told you about this).

NOTE: Just as people working in Maritime Rescue undergo annual drills and emergency situations, I recommend you once a year to do a wallet recovery exercise or drill, take it with the same importance as you are assuming a great responsibility.

2. Money Seeking Money:

“A before and after when you understand this concept”.

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Being able to observe how, when and where the money that has information and knows what it does moves to, will show you a path with infinite potential and from that moment on nothing will have secrets for you, but be careful not to be overly motivated, mastering this art is directly linked to knowing how to analyse in chain the transactions of the so-called “market driving agents” and believe me that here we enter the immense blue ocean of blockchain, which is full of schools of fish ready to fish, but also of great storms and challenges. Before I talk about point 3, where I will give you the detail of what to look for in transactions, let me explain this new concept for you: 

“Money seeking Money” refers or defines money that moves through active and profitable portfolios, entering into this definition mutual funds, whales, high yield farmers, early adopters and flash combinations. To find out what this money is doing on the network, it is necessary to investigate and to narrow the circle around it, observing at least the operations that are made in the DEX in the last 24 hours or 7 days at most, and with what volume they are made.

This alone is not enough, but the way in which these addresses execute the holdings of certain tokens also counts, since if we are dealing with this type of money it is normal that their next movements have a direct impact on the price of the same. To broaden the concept, stablecoins also play an important role in determining what we can expect in the coming weeks, depending on how much of this money is held by these wallets and how it is circulating, whether from wallet to exchanges or exchanges to wallets. 

To be continued………………….