Crypto investing: a very short introduction

CeFi stands for Centralised Finance. Using these services means you're giving custody of your crypto to a company. If the company goes bust/gets shut down/your account gets blocked, you could lose your crypto. In that way it's similar to traditional banking.

DeFi stands for Decentralised Finance. These services are non-custodial i.e. through the magic of blockchain you retain custody of your crypto — no third party is looking after it. You don't have the risk of a company going bust/getting shut down, and no company/government can stop you from accessing your crypto. Just don't lose your private key!

Strategy CeFi option (platform risk) DeFi option (keep your private key safe!)
Just buy and hold BTC/ETH

Buy BTC/ETH from one of the platforms on the left, then send it to a wallet:

Buy an passive index

Metastrategy is my new strategy on ICONOMI. It's an automated strategy with daily rebalancing that is always an intelligent mix of the current top performing strategies, and is thus a great set-and-forget option.

You could also invest in 3-5 of the current top performing strategies. If you choose this option I recommend you manually rebalance every 3-6 months (i.e. move your money out of any strategies that are now no longer in the top 5 and into the current top 5).

Buy an actively managed portfolio/fund/strategy (read about active vs passive investing)

These are all early stage and I haven't yet used them myself.

You could of course pick a mix of these different options. For example,

If you do choose to invest, consider dollar-cost averaging (investing regular small amounts) rather than going all-in.

Want to go deeper? Join my next Introduction to Crypto & DeFi course

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