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How Decentralized Finance is Discretely Making the World’s Top 1% Richer

Published 03/01/2023, 05:17 AM
Updated 03/01/2023, 05:30 AM
How Decentralized Finance is Discretely Making the World’s Top 1% Richer

The rich are getting richer. That isn’t exactly news. What is news, however, is how they’re doing it. Not only are they using one of the newest financial tools out there, but they are doing something that almost anyone can do.

Decentralized finance (DeFi) is still a young sector by broader market standards. It’s only five years old, making it an infant compared to other investment spaces. For instance, the stock and foreign exchange markets are more than 200 years and 50 years old respectively.

The world’s top investors have been secretly channeling billions of dollars into DeFi. And surprisingly, for a market that young, these investments are paying off.

Behind the curtains, early adopters are reaping the benefits from the biggest wealth transfer in history, as the world is transitioning into a decentralized economy.

How top investors are using DeFi to get richer

DeFi has several key characteristics that the smartest investors are leveraging to make more money.

Ease of use and management

Simplicity and agility are key factors that top investors look for when it comes to managing their wealth.

They want their money to work for them without having to spend a lot of time or money managing investments themselves or paying someone else to do it for them.

This is where DeFi shines. Unlike traditional investment markets, DeFi products are designed for ease of use and management.

In the DeFi space, investors can deposit funds into a smart contract and receive yields in return without having to actively manage their investments. For instance, liquidity pools for decentralized exchanges (DEXs) and lending platforms pay investors for making their crypto available to other traders and borrowers. This requires very little management compared to forex and stocks.

Moreover, almost all DeFi investments are liquid, which means investors can withdraw their capital at any time to pursue better opportunities. The availability of capital and the ability to move it quickly are essential for seasoned investors.

Overall, DeFi offers stable investment opportunities where investors can earn a good passive income without having to worry about complicated management or long-term commitments. With simplicity and agility at the forefront, DeFi is quickly becoming a favorite among the world’s top investors.

Big yields

But, what top investors enjoy even more is the yield. The best DeFi products offer the highest yield of any investment instrument. It’s not uncommon to see annual percentage yields in the thousands. Thus, DeFi is an opportunity to make profits more than 10x the initial investment – something that top investors are using to make millions.

How are such yields possible? DeFi eliminates intermediaries. It differs from the current financial system, which is dominated by middlemen. These gatekeepers, like banks and other financial institutions, use investors’ funds to generate significant profits, which they keep almost entirely to themselves.

In DeFi, there are no such brokers. Investors access opportunities directly. They become their own banks, reaping profits that you can’t get with any other asset class.

A weapon against inflation

Another more subtle but equally important way top investors are benefiting from DeFi is as an inflation hedge. Today, inflation levels have struck all-time highs around the world. The result is that many people in traditional markets are watching their hard-earned capital slowly become worthless.

But, that’s not the case in DeFi. The space is founded on crypto assets. And, the value of some of these assets has been steadily appreciating. In most cases, this appreciation far exceeds the drop in currency values caused by inflation. So, DeFi investors don’t have to worry as much about losing value to inflation.

This, combined with the low management and high-yield nature of DeFi, has made the space an excellent way to secure one’s financial future, even in a recession. This has turned it into a favorite money-generating instrument of some of the world’s biggest investors

But, just because decentralized finance is loved by the rich doesn’t mean it’s only for the rich. The best thing about DeFi is that anyone, no matter their class or geographical location, can enjoy these benefits.

How anyone can use DeFi to get richer

Being decentralized, DeFi is open to everyone. But not everyone in the space makes it. In fact, most traders end up taking a loss. The few that have gotten rich with DeFi do so because they take a different path.

Rather than gamble, as most traders do, they have figured out that success in the space is all about recognizing the right opportunities early.

What does this involve?

DeFi is full of investment opportunities. But not all these are legitimate. There are many scams and “rug pulls” in the market. So, finding a legitimate product is very important.

But, even more important is finding the opportunity early. The top 1% of investors in DeFi are so successful because they find legitimate investment products early in their life cycle. This allows them to make the most returns on the cheapest of investments before things become saturated.

How to get an Unfair Advantage over the crowd

Finding the right opportunities at the right time is impossible without specific resources. To this end, rich investors enjoy certain privileges that give them an edge over regular investors.

For one, they can easily access powerful research tools. They’re also able to network with major players in crypto. This has allowed them to form exclusive communities within which members secretly share lucrative DeFi investment opportunities and strategies that minimize risks and maximize returns.

Some may call this an unfair advantage, but given the chance, most DeFi investors would gladly take this advantage.

Fortunately, there are exclusive investment clubs, like Decentralized Masters, that open their doors to regular investors, educate them on DeFi, and share all their secrets with them in order to grow the hive mind. Of course, the success of such communities depends on their ability to stay highly curated and private.

So, the club only takes on a few new members a month. These lucky few go on to receive little-known investment tips and strategies from people who have made millions in the DeFi ecosystem.

The post How Decentralized Finance is Discretely Making the World’s Top 1% Richer appeared first on Coin Edition.

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