Everything is great when you’re in the bull market — the coins grow, new projects appear here and there, DeFi sector pumps like a madman. Everyone feels euphoric and pink glasses cover each face. However, people tend to forget that one should be as cautious as possible when dealing with crypto — there are too many grey areas and shady people out there looking to grab your coins and disappear in the sunset. So security is the first thing always to consider when working with crypto.
Follow simple rules to keep your funds safe: never share or store your seed phrase in places accessible by third parties, never login to unknown sites and give them any permissions, and avoid clicking malicious links. It’s essential to remember that there is no free money out there, and nobody wants to make you rich suddenly.
But security is one thing while there are still many risks in web3 space. For example, recent events showed that you need to think twice before putting your coins into different protocols — the higher rewards you’re offered in any given DeFi project, the higher the risk of receiving an impermanent loss or getting liquidated. On the other hand, proof-of-stake blockchains provide a stake in native coins which can be considered a low-risk investment.
Blockchains offer various annual percent yields with varying staking conditions — lock period, withdrawal times, etc. Therefore, when choosing your next investment, it’s crucial to do thorough research — the team, investors, projects, and community — this list can be pretty long, but your money is at stake. So one can’t be too cautious in such moments. Last but not least — the APY in the given blockchain. We have analyzed staking APYs in different blockchains; the data includes nominal staking percentage, the speed of emission (which affects the real APY as its inflation), and the presence or absence of lock periods.
After picking the coin for your next investment, you will need to exchange tokens you own for the ones you plan to stake. You can do this on CEXs and DEXs or move your tokens through bridges. Octus Bridge connects many blockchains, providing a fast and convenient way to transfer your tokens between BNB Chain, Fantom, Polygon, Cardano, Avalanche, Ethereum, Solana, and Everscale. The development of modern-day technologies can onboard more users to different projects as this process becomes more accessible with each new solution on the market.
In conclusion, we would like to repeat the essential points when dealing with crypto — always keep your data protected, conduct thorough research for your investments, and assess potential risks. And be careful with numbers — declared APRs might not include inflation, and lock periods can block your funds for extended periods. And let us all hope that the bull market will come quicker as expected.