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Ask HN: How much money can you make with DeFi and how long will it last?

1 pointsby arikrabout 3 years ago
Should I have fomo, or not really

2 comments

PaulHouleabout 3 years ago
No you should not have FOMO. Move on, nothing more to see here folks.
dylanhassingerabout 3 years ago
I fell into the trap this year, down overall but had a couple wins. Some thoughts:<p>Watch out for your downside. Reflection-generating coins pay out based on transaction volume, there&#x27;s always a lot of traffic at first but then they die out. Dead coins make no payouts!<p>Nodes are a little safer cuz they &quot;guarantee&quot; payout, but gotta watch for an ecosystem that has trustworthy players and wont collapse in a month. Also Nodes have transaction fees when you get the payout, so if you have a bunch of small nodes that translates into lots of fees. And ETH fees during the day are insane right now.<p>Staking seems the safest but that&#x27;s the lowest rewards<p>As always if the base coins crash (i.e. due to a european war) then the payouts are gonna crash too.<p>Nothing is as valuable as sitting on a pile of ETH that you can flip into a good deal when you see one.<p>Dont forget to calculate Buy and Sale taxes into your decision making. I made a lil spreadsheet I can plug values into, basically need at least 2X on the sticker price to make any overall profit. And forget about selling the top&#x2F;buying in after the crash, fees eat up all your margin.<p>Oh yeah, then there&#x27;s real world taxes. Conservative approach is to count payouts as income in the year it is earned.<p>Bottom line, treat it as entertainment and budget accordingly!