Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Decentralized Finance Currently Presents Higher Risk Than Return

Published 07/17/2019, 09:25 AM
Updated 07/17/2019, 10:41 AM
 Decentralized Finance Currently Presents Higher Risk Than Return

Yet another buzzword is making the rounds in the cryptocurrency space - DeFi, or decentralized finance. Roughly speaking, those are investment opportunities for the holders of crypto assets, often involving elaborate schemes of growth creation.

In 2019, the crypto space is mostly made up of insiders, who already own digital assets. Cashing out to fiat is still relatively difficult - and merely holding onto assets has proven to be less lucrative than in the early days of crypto. Altcoin holders may also find their assets illiquid and seek other sources of income.

One of the biggest DeFi organizations is Maker DAO (MKR), which creates returns by issuing the DAI stablecoin. But the DA...

This article appeared first on Cryptovest

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.