I’m Ditching Forex for Defi

Disclaimer: I am not a financial advisor. The content for this weekly outlook is purely for educational/research purposes only and is merely based on my personal opinions.

Let's be honest, we have been chasing money for our entire life. When you come across something more lucrative, you will definitely dive into it. Grateful enough, I am very fortunate to be exposed to the decentralise finance (Defi) world, where there is an endless possibility of gaining more income. In this article, I will explain my reasons on why I'm ditching forex for defi, and perhaps my future plans for defi.

Just some personal backstory, my full-time job requires me to work from 9 am to 7.30 pm daily, after which I need to spend time with my side hustle and housework. Finally, at the end of the day, I am only left with about 1 hour for my investment/defi/forex trading.

Reason 1. Defi has a much higher income yield than forex.

Those who actively participate in defi project would know the defi can reap from 20% to 10,000% annualized yield. This is way higher than our traditional bank interest and also to some extent, higher than my Forex trading yield, which at most is a 40% yield. Imagine starting off with $500 for both forex and defi and by the end of the year, defi project could have increased 10 to 100x the initial capital while my forex would at best increase by 2x.

Definitely, there will be risks involved in participating in defi projects such as token value drops, Rug Pull or Ponzi scheme. But as long as you do your own research, I believe all these risks can be minimised and maximise your profit.

Reason 2. Defi requires lesser time to manage.

There are many ways to earn in the defi world. You can either stake, yield farm, lend your crypto out or even become a liquidity provider. However, before you participate in any defi project, it is highly recommended to conduct in-depth research. Although doing research requires more time but once you are done staking or yield farming, there is pretty nothing much for you to do except for checking in once in a while and/or withdrawing your money from the project.

As for forex, we always have to do conduct technical and fundamental analysis before every single trade. At the same time, we also have to constantly manage the trades like moving the stop loss to break even or/and taking a profit. On top of this, we always have to evaluate the trading strategy every now and then to properly fit the market and maximise the profit gains.

Personal Note

I understand some of you guys may take trading Forex as a full-time job while investing in Defi as a passive income stream. I respect you guys as that is my dream as well! However, because of my situation, I only have the time to either do research for defi or conduct technical analysis/execute trades for my forex. But as you already know, I have chosen defi over forex just because of the lucrative point.

Future Plans for defi.

My plan is rather simple. Research and find interesting Defi projects from Youtube, Medium, Twitter, and individual project's whitepaper. Using my full-time job to fund these projects until I am able to hit $1million. In the future medium post, I will be introducing projects that I planning to join or have already joined, and let's make money together!

If I cannot do great things, I can do small things in a great way.

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