This recent guide serves as a comprehensive roadmap for both seasoned cryptocurrency users and novices, simplifying the world of decentralized finance (DeFi).
The world of cryptocurrency witnessed a dramatic surge during the 2021 DeFi boom coupled with a mounting fear of missing out (FOMO), propelling Bitcoin (BTC) and most cryptocurrencies to record-breaking highs. At that time, the total value locked (TVL) across DeFi soared to almost $180 billion before descending rapidly.
With Bitcoin’s price recently oscillating around the $30,000 mark, there are speculations about the market preparing for another surge. This scenario could potentially entice both experienced users and newcomers to delve into DeFi. Cointelegraph Research’s current report aims to offer useful insights to DeFi users of the past, present, and future.
“DeFi Investment: An In-depth Guide” offers beginners an understanding of blockchain technology and DeFi. The report contains valuable links and references to a range of resources and tools, empowering users to perform their own research before investing. Cointelegraph Research and Cointelegraph Markets Pro have jointly contributed to several aspects of the report, providing strategies for conducting fundamental analysis to mitigate cryptocurrency investment risks.
Is DeFi Growth Imminent?
Prior to investing in DeFi, understanding its potential growth trajectory is crucial, particularly if interest increases in the future. Reflecting on DeFi’s steep ascendance during the 2021 DeFi boom, it seems there’s ample room for growth, at least to the levels reached in the last bull cycle.
While there’s no certainty that crypto markets will emulate past performance, it’s clear there was once significant market demand for DeFi. Potential investors should ask: “Is the current adoption rate more or less than in the past?” and “Could future adoption rates exceed those of today?”
Navigating Through the Tools of Trade
The nascent days of cryptocurrency offered limited tools. However, DeFi users now have a plethora of tools and applications at their disposal. It’s unfeasible to chart every single solution that has been developed and launched.
The graphic below serves as a starting point for DeFi investors, guiding them through different protocols and potential investments in the cryptosphere. Cointelegraph Research’s latest report aims to simplify DeFi for novices.
Meet the Cointelegraph Research Team
Cointelegraph’s Research department unites some of the leading talents in the blockchain industry. Merging academic rigor with practical experience, the team strives to provide the most accurate, insightful content on the market.
Deputy Director of Research at Cointelegraph, Michael Tabone, leads the team, which consists of experts from finance, economics, and technology. The team leverages APIs from various sources to provide accurate, helpful information and analyses.
Possessing extensive experience in finance, business, engineering, technology, and research, the Cointelegraph Research team applies its collective expertise to its “Investing in DeFi” report.