#5 My 1,912% APY crypto investment
Or how to learn by doing
In September 2021, DeFi 2.0 was getting all the hype and I was curious to learn about decentralized finance and high-yield investments. Instead of staying on the sidelines, I wanted to get in on the action and make several investments as an experiment. I wanted to learn by doing more than just make money.
I started my journey with a course on DeFi investing by
I went with Tulip as my yield farming platform. In order to stake coins and earn yield, I needed to exchange my crypto to different pairs of coins that were available on the platform. I saw a pair of LARIX - USDC had a high yield of 1,912% so I decided to invest $42 into that. I made a note to check back on it a year later. It would either make me a lot of money or go to 0.
In November 2022, I checked back on my investment. Based on the APY at the time of my investment, I should have made $845. But instead, what I saw is a current value of $5. To be honest, I wasn't surprised. If in September 2021 the crypto markets were at its highs, by November 2022 we were in the middle of a crypto winter.
Although I lost some money on this experiment, I learned a lot about the DeFi space and how these products work. I learned that these sky high APYs are a myth. Yes I failed, but I learned more by doing than I would from just reading about it. If you ask me, that's just the best way to learn.