I’ve done so much research but I just can’t fully grasp it.
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That depends on your definition of “regular investing”. There are many investment vehicles defi, being one of them, and each has their own risk profile. Defi has a higher risk profile than others, as highlighted by wonderland, but that increased risk brings potential higher rewards. The important thing is to remember the golden rules of investing: do thoughrough research before investing, diversify your investments, and never invest more than you can afford to loose or keep locked up long term. The incident at wonderland does not make defi less worth it. The problem with wonderland is an issue of trust with the management of the project. This is one project and all projects are different with different leadership.
Normally when people talk about investing, they’re talking about buying an asset that generates income, like buying stocks in a company that generates income or real estate that you can rent out.
Crypto is really more speculation than investing. It doesn’t generate any income and you’re just speculating that the value will rise in the future. This is more similar to buying foreign currencies or gold or art.
The difference between these things and crypto is that the price of a crypto token can change very rapidly just based on a loss of confidence in that token. This can also happen with the things I mentioned, but it’s usually a lot less severe than with crypto. There are numerous of crypto currencies that went to basically zero over night.
Crypto you are buying into something not really backed by anything, it’s imaginary. With the stock market you are buying a share in an actual company that exists and you can assess the future success or failure of the company more realistically. These businesses can also pay dividends which can help create additional revenue for you,
The main difference is to do with the lack of regulations. The basics of investing in currencies is essentially the same as for cryptocurrencies.
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