Comprehensive Guide to Polygon DeFi: Wallet Setup, Transactions, and Yield Farming

hello everyone uh first of all sorry about the long gap i know it's been a couple of months um and uh i've tweeted

about uh you know having work-life balance and being busy with other stuff but hopefully this gets me back into the

rhythm and i'll continue to publish more frequently than i have been before so let's get on to the video today i had

spoken about polygon uh d5 demo what couple of months back i explained about the polygon ecosystem in my episode 29

so today we'll be doing a full demo on setting up a wallet for polygon formatting ecosystem transferring money

into polygon ecosystem and doing uh defi trading in polygon ecosystem so as usual disclaimer is that i'm not a financial

advisor or investment expert um my videos are for learning purposes only i'm just trying to teach what i have

learned and that's what the purpose of the video is you um it's your money and you invested directly don't invest it

with third parties so the agenda for today is that we're going to set up a new wallet in metamask for polygon or

4matic we're going to use metamask for today's demo and i'm assuming you watched my previous

videos then you'll get a better understanding of sending crypto to polygon wallet and will use we'll see

three different methods and in eel forming a tool is very important to track your investments so we'll be

looking at two tools to track your yield uh in polygon as well and again we'll be doing a simple swap

liquidity pool forming all of that will be watching we'll be seeing a quick demo in polygon ecosystem we've seen this in

binance ecosystem we've seen it in ethereum in my previous videos we will see it in the polygon ecosystem as well

and then uh we'll also summarize what's been happening in polygon ever since polygon came into picture or the d5

ecosystem started what's been happening in the last two to three months um and uh last but not least you know a

couple of my investments i tweeted about it so let's look at that as well so a lot of people have been asking me

about whatsapp and telegram groups i don't want to create a close group like i've said before because misinformation

can be easily spread so i'm active only on twitter and youtube because both are public media and if i say something

wrong or if you say something incorrect there's an opportunity for somebody else from the public to correct me as well so

that's one of the reasons i'm on twitter but i know that um some fake accounts have been switched have been circulating

in telegram in my name so please be aware of those um touch system update again

uh i'm assuming that you watched episode 24 and 25 where i've explained about decentralized finance and also explained

about the differences between ethereum and binance smart chain based d5 apps how to do liquidity mining what are the

risks of liquidity mining impermanent loss all of those have explained in detail for people who don't understand

decentralized finance those are the episodes to watch and start then you will be able to better understand this

video because in those videos they've also explained what is meta mask and how to set up metamask for binance marching

so if you watch that and come and watch this video you will get a better understanding so

for setting up polygon polygon is another uh d5 ecosystem or it's an ethereum

l2 or it's more than an l2 but we need a d5 wallet decentralized

finance wallets which is a non-custodial wallet so for for using decentralized exchange and

decentralized apps we need a decentralized wallet and a non-custodial wallet so not all d5 wallets are

currently supporting polygons so we'll be using metamask today which is one of the most popular computer based wallets

there are other wallets as well which we will cover mobile wallets for example we will cover in the later videos but

today's episode we're going to be using metamask so let's do a quick demo on polygon uh let's start with the demo

itself let's transfer some ethereum from ethereum network to polygon network and let's do a simple swap transaction and

we'll be swapping using the native bridge and we will be looking at the gas piece for transferring we'll be looking

at the gas piece in polygon for transferring one of the main reasons we keep talking about gas pieces because

that was the killer in ethereum there is a huge difference by the polygon ecosystem for d5 is thriving um because

of the gas piece because most of the time if you're a small investor you'll be losing your money in gas fees itself

and there are third-party bridges for transferring uh your your money from your ethereum or finance marketing to

polygon we'll be looking at why those are useful and why you need to actually use them because in native bridge you

have like ten dollars plus fees in a third party bridges the fuse is comparatively lower i have used three

bridges and i'll be looking at one of the bridges and be doing a demo of the third party bridge as well

also another uh important reason to use third-party bridges is that it's easy to transfer if you have money in the bse

network in the binance market it's easy to transfer from binance marketing to the polygon network using these third

party pictures so let's see a quick demo of that as well but uh we've talked about the native

bridge in the third party bridges but these days most of the common exchanges the bigger

exchanges they have all started supporting direct deposits and direct withdrawals on the polygon ecosystem as

well this has made it a lot more easier for drawing or depositing money into the

polygon ecosystem and that's like unlike any other l2 which has done it before where a direct transfer to an ethereum

l2 or ethereum side chain is possible which is why a polygon is not a side chain or an l2 anymore it's a completely

different ecosystem on its own so we will see a quick time on the deposition withdrawals from a major action as well

today we'll be using binance and crypto.com which is one of the two most popular exchanges that i've been using

in my videos and demonstrating so first let's start with the basics of uh adding a polygon to a meta mask so metamask as

we know we've spoken about it it's a d5 wallet and it's on the laptop so if you go to this docs page in matic

they've given you all the details that you would need to copy and use it for your metamask so in metamask if you

click on expand click on that ethereum mainnet in the

top and you can see that there is no other network other than test networks to start with when you set up a brand

new meta mask and click on the expand view by clicking on those three dots and then when you

click on your name there is a settings button on the bottom so if you click on settings on the left you will see

networks as an option so click on networks and it'll ask for these these five or six fields which you can start

entering by copying from the link that i'm going to provide you in the description of this video as well so you

can directly go to netmatic as well so copy the name as matic mainnet so network name you can keep anything that

you want but it's it's useful to keep it as whatever they have given uh the most important thing is the url and the chain

id those are the two most important things so copy the url and copy the chain id as well whatever they've given

and use the currency symbol as matic m-a-t-i-c because that's how it's commonly known block explorer url is

optional but currently use the explorer.matrix.network that i'm given but uh they are now

coming up with a new block explorer called polygonscan.com so once they fully switch to it you can probably use

that but for now you can use these settings and i'll give you the link to it where you can copy paste it you don't

need to refer to the video it's easier if you copy it from that link that i have given so once you do that your

matic account is now set up and initially you will have zero matic i mean previously they used to give a very

small 0.001 matic for the fees by default but now they don't so you get 0 matic so there are so if you go to

wallet.matic.network and you sign in with your metamask they will also give you a native matic

wallet on the web which apart from metamask we can use it to see easily what is your balances on the polygon

network so there are third-party faucets available like matic.supply and mac and

cheese.finance where they by d by uh for for gas purpose or for the fees

purposes they give you like a 0.001 matrix to start with for any transaction in matic you need these uh

matic tokens to start with so the first token that you would normally send to your wallet if you don't use any of

these is your matic tokens but if you're sending ethereum or for our usdc or whatever and you want to do

a transfer and then do a transaction in polygon network you can get free matic 0.001 matic which is enough to do like

10 15 transactions in matic by ah going to one of these things and just just clicking on i'm not human or i'm not a

rob i mean i'm not rob but i'm not a human i'm not a robot and clicking on okay

then you will probably get point zero zero matic again i'm not sure if all of these are working today these used to

work uh polygon system was introduced if not evo d5 is probably something that

is still working so if you use the uod for third-party bridge they will by default also send

multi-tokens to your network so let's look at the first option of sending matic tokens using the native

bridge one of the things i tweeted about is that there are scam tokens that are dropped ad dropped into your wallet

and these are scam tokens that are addressed because they are basically scams so they add drop these tokens and

then when you're curious to find out you know how can i transact these tokens and you

google for it and they give you a a d app or decentralized app and you go and try to use the decentralized app they

basically get access to your d5 wallet and they steal funds from you so for now i have a small amount of matric

tokens in my wallet but if i click on move funds from ethereum to polygon and then i look at what is there in my

ethereum wallet to start with right if i just do a drop down i can see transactions like this 360 app chats

chaguara all of these coins i've never heard about never transacted but they've just been addropped into my account and

they hold no value but if i try and go and find a d app for it then they're basically going to scam me out of my

wallet or my coins so don't do that don't transact on cryptos that you've never heard of and

just magically appeared on your wallet so i'm going to transfer using the native bridge 0.01 ethereum so if i

click on transfer and select ethereum as point zero one and i click on transfer button um it says that it's going to

take roughly about seven to eight minutes and takes that about twelve dollars of uh deposit fees for

transferring 32 dollars of ethereum so i click on continue i accept the gas piece and then metamask will ask me to

accept the gas fees in the metamask system as well and once i say that i'm i'm okay with the gas piece totally

forty three dollars i'm i'm using from ethereum thirty dollars for transferring and point zero one uh or rather twelve

dollars for uh the transfer fees i click on confirm uh like normally how we've done in the ethereum and binance

marching and the transaction will start processing this is a native bridge and it takes about roughly about 10 minutes

in total to process so first it reaches the intermediate states where it gets confirmed in about two or three minutes

and after confirmation it takes another seven or eight minutes for your ethereum or for whatever currency that you're

transferring from your ethereum network to your polygon network so now after about 10 minutes my ethereum has reached

my polygon network so the second method that we'll be using is a third-party bridge so for this

third-party bridge i'm going to transfer busd which is binance's stable coin of us dollars using the bep 20 uh binance

table binance marching network and i'm going to transfer 15 because this is kind of the minimum on the polygon

network so if i transfer 15 from binance to the binance marching the fees is literally

zero so i put my d5 address and transfer it to the binance mulching once i get my binance bust in my

d5 wallet i do a swap to banana which is a native token of the app apeswap.finance

again the fees is really negligible it's about five cents or lesser so the transaction has been submitted and i've

swapped my bust that i've transferred from bst to banana in the ape swap dot finance and there if you click on the

bridge icon multi check dot exit will open with all the url links and it's showing me that i can transfer

from banana um in the in the bse network to the polygon network again the fees is like 0.002 bnb which is again about 5

cents or lesser now if i click on transfer um again an initiation process or a transfer process

will it get initiated this was a bit faster than all the three methods that i've tried it took about like less than

five minutes to transfer from binance marching to the polygon network including the transfer from binance to

the d5 network now once i've got it i'm going to transfer it back to usdc just to see the

difference how much i'm getting and i'm losing about 10 cents i transferred 15 i'm getting about 14.9 dollars again

that could be because of the fluctuation in the banana currency so if you wait a bit longer you might probably get more

than 15 but immediately if you want to transfer i'm getting about 15 again the transfer

fees or the swap fees in matic was negligible now the third method we'll be sending using the uh native withdrawals

and deposits of crypto exchanges so we'll go and purchase 20 matic in crypto.com mobile app and then we'll

click on dramatic and we'll click on external wallet and when you click on external vault and add address it gives

you two options now earlier there was only erc20 now it gives you polygon as an option as well now i select polygon

and i give the i put in the wallet address which is my meta mask address and i give the wallet

name and i transfer about roughly let's say 23 matrix

so again the transfer fees as you saw was like nearly 0.1 metric or 0.08 matrix and within about 10 minutes this

entire process got completed and i got my matic in my metamask qualities as well now let's do

it with finance and then binance just want to demonstrate the fact that you can in uk you can easily buy it using

your debit or credit cards there was a big bit of a conspiracy that you know deposits have been disallowed in

finance i just wanted to show how quickly you can buy it as well so again if you click on withdraw formatting it

shows finance marching ethereum and matic as well as you can see ethereum is about 20 dollars and then

matic is 0.1 matic which is about 10 cents or less so this is a comparison in total now

let's look at a comparison of all these three options so in ethereum

if you were to transfer from your centralized exchange first to your decentralized wallet ethereum wallet

that takes about 20 dollars as we saw in the finance withdrawal options and again the native bridging

takes about 11 or 12 dollars if you already have money in your ethereum network it takes about 12

approximately depending upon the congestion so in total it takes about 30 32

and again uh this takes about 10 minutes in total approximately in the third party bridges that we used

today uh transferring bust you took zero dollars fees uh swapping the bus t to banana took about point zero five

dollars bridging the banana to polygon um took about a roughly negligible amount and then banana to usdc transfer

or swap back if you want usdc in your polygon network so it takes about like you know point zero zero two matic or

something which is again one sense or less than one center and when we finally swapped it back to usdc that gave us by

14.9 dollars but so it's incurring a loss of let's say 10 cents approximately so in total it costs about 15 cents or

less and the time taken approximately was the fastest it was about five minutes of process

and direct withdrawals from both crypto.com and binance was approximately 0.1 matic to 0.08 matic so again you

know 12 cents to 15 cents about 12 rupees to 15 rupees in indian currency so

that's a comparison because the the reason this is important and these and the fees are all important just because

uh small investors often uh lose out money by paying a lot of fees and you know 50 or 60 of their profits are wiped

out and fees itself and especially before binance marching and before uh polygon

doing it on the ethereum was basically impossible for small investors because the fees used to cost like you know

hundred dollars even for a fifty dollar transaction used to pay a fees of 100 150 as well which we have seen in

episode 24. so one of the reasons we emphasize on fees and we talk about fees is because that's what is more important

or that's what made it possible for small investors to be doing d5 or to be earning using d5 on both the finance

marching and as well as the polygon ecosystem so that's why we give emphasis on on comparison and cost of

transactions and cost of the gas fees in all of the three ecosystems and the three examples that i'm going to be

talking about today are quick swap apespap and vault finance these are three common exchanges that have been

using in polygon some of the exchanges that i trust right now in polygon ecosystem so first we'll use a quick

swap to transfer the ethereum or to swap the ethereum into a stable coin so we'll be

um transferring from uh from the ethereum coin that we transferred to usdt which

is one of the stable coins so first you click on meta mask after you go to quick swap product exchange and you change it

from ethereum if you click on ethereum now you can see matic also is another option like in this wallet i've added

smart chain so you can see that as well so i'm going to select matic using that option or i can actually click on switch

to matic which is available in most of the popular exchanges these days so if it's an ethereum exchange or a binance

production you can click on swap thematic and it will ask you allow this fight to switch to the network so you

click on switch network and you automatically be connected to the polygon network now i'm going to select

on from and select ethereum which is point zero in ethereum and we're going to select the two token as usdt which is

the us dollar stable coin tether so you can transfer it to any of the stable coins you can transfer to usdc as

well so as you can see the liquidity provider fees is very very negligible so you click on swap and then this is where

the gas phase comparison comes into picture so in ethereum for example if you are

stopping at 30 um the fees would probably be twenty thirty dollars minimum here you can see it point zero

zero two matrix so point zero zero two matrix is about you know less than one cent so that's

how it compares to binance marching as well so even in binary smart chain the fees was like you know 10 cents 20 cents

sometimes and it adds up to two three dollars for like four or five transactions together here even if you

do 10 transactions it is less than um 50 cents in total so again now we will do a simple

liquidity pool so we will use uh apesfab.finance like i said i am going to supply to a liquidity pool

of matic and crystal so i am just using this as an example so i am converting let's say 10 matic to crystal so click

on swap first go to swap i'm getting crystal first using matic again the fees is included in the total transaction now

it is like in the fourth decimal place so click on confirm so your first swapping from one token to another token

so like we've seen in binance marching to provide liquidity you need to have the same dollar amount equivalent in

both the tokens so now i have it i click on liquidity and i i confirm adding liquidity by providing

equivalent amount of crystal in dollar value to matic so once i provide liquidity by providing a pair which is

matic and crystal again it asks for gas fees and confirmation so i confirm in my metamask

now i have supplied liquidity and i will get liquidity pool tokens lp tokens as we called it in the binance smart chain

so very similar process to the binance marching so if you have seen my 25 and 26 it's exactly the same process except

that fees is even more cheaper than the finance marching now you can see the pool tokens have been reflected in the

bottom saying that you have provided liquidity here is the representation of liquidity pool now if you kept it as it

is the loss impermanent loss will be higher so we will now earn uh more rewards by farming that liquidity pool

token so go to yield forms and you can see banana or crystal um diplomatic crystal they're giving two rewards

banana and crystal so both tokens are being rewarded for us so again uh first we approve the transaction or approve

uh metamask to spend our liquidity pool tokens from ipswap.finance and once it is approved then you can

click on add liquidity and i'm going to put all of my liquidity token into the ecosystem so i click on state and

once i've selected max i click on stick and now i will be putting my liquidity pool token into a

farm which is a yield farm and then i will be starting yield forming so this concept as we have explained before

where you provide liquidity face the liquidity mining risk with impermanent loss and then you

farm it in a yield for better what this is called as yield formics now that is done so you get that green tech mark

above which says that your liquidity pool tokens have now been staked into this farm so every day you will be

getting rewards in banana and crystal so you will be getting two tokens so

like i said in my previous videos right initially you need a tool to monitor your default because otherwise it's very

difficult to find out what is your impermanent loss especially after you put it into a yield form it is difficult

to see how much tokens you have between one token to the other token and

we'll be using two tools today one is yield watch which you will be familiar with which we had used in our episode 25

and 26 this is now uh having limited functionality or limited monitoring options for polygon uh and it's limited

to a few of the decentralised exchanges we'll see what those are in the demo and the new tool that is relatively new

because it's still i guess in beta version it's called a boot eight board is clock cross platform you can use it

for your binance smart chain as well as an excellent tool for overall monitoring but there are some minor flaws with a

board but other than that you know the overall functionality is relatively much higher and the coverage that it has is a

lot higher than yield watch where yield watch is limited to a few decentralized screens a board has got a lot more

monitoring capabilities but it has got definitely some minor flaws which i think you know which was

not their need watch and again that's probably why it's in a beta version so once we see the demo of it you'll better

understand the comparison between these two tools and essentially you will also understand

why is the need for you to use a monitoring tool um in any d5 ecosystem when we see the temp so

let's see the demo quickly so first we will look at yield watch yield watch.net as you know and again i'll provide the

links in the drop down uh now along with binance marching you also have polygon matrix so if i select polygon mating as

you can see there are only about six decentralised exchanges which is apeswap and walt finance are two of the ones

that i included which is one of the reasons i selected them for this video as well so

um here you can see that i put wmatic and banana into a into a pool before and you can see

you know how much fluctuation has happened for example 8.9 double matic has increased banana has decreased how

one token increases and decreases so it also tells you that at the time when i

deposited it was about 24 in total that value that i had deposited and because of the uh yield that i've got and

because of uh the uh value that it has gone up to it is now 32.96 dollars in terms of the you know forget the yield

just the value of the tokens that i've put in uh 8.9 matic has gone to 10.2 to 3.9 bananas come down to 3.4 but in

total it's about 32 dollars it's gone up in value because one of the tokens is done or both of the tokens have done

really well and also um i still have about uh 0.43 banana

which is two dollars additional to the 32 dollars in the two weeks i've got about for the 24 dollars that i've put

in i've got about two dollars and 0.09 cents of the matic it's a dual yield token so you can see banana and matic

both are shown here now we will see about dot finance is a comparison so a board dot finance dot

slash dashboard is where you will put your link your metamask address and here you can see it is listing two

pools both the liquidity pools whereas yield watch was not showing me the matic crystal pool it was only showing me the

matic banana pools even though in the same uh d5 ecosystem i had two liquidity pools um eid watch was only showing one

the matic crystal pool is just what we had deposited the next day i am seeing how much it has moved by so as you can

see i put 9.946 tokens and or whatever initial tokens i put was

nine point nine eight three now it does move to nine point nine four six fourteen point one nine is moved to

fourteen point two three and it shows the impermanent loss difference as well and if you see the the difference in

impermanent loss it also shows that how much one has gained another has lost so in total i have still gained about point

zero zero one cents is what it tells me from an impermanent loss calculation again a brilliant tool for calculating

in permanent loss much similar to yield watch but the difference or the the bug is that it's a dual yield token or i've

got banana and i've got crystal both of them i'm able to uh mine from this haha from this i got 0.038 banana

and 0.07 crystal as well but whereas the airboat was showing me only the banana reward it was not showing me the crystal

um reward so when there are dual tokens that are being rewarded the a board finance is

not calculating the dual tokens so we're going to harvest just to show how much value we are missing so if i harvest

both the tokens banana and crystal are both harvested together so you don't need to harvest them separately

so if i um first take crystal for example and see how much us dollars it is worth so the point zero eight us

dollars eight cents worth of us dollars was being uh missed out in the eight board dot finance and banana was about

18 cents so about 25 rupees in total of which eight rupees was being missed out by the abort.fast that are those are the

kind of minor flaws that exist in the abode finance we've seen all the good things in

polygon network uh but there are some issues as well in polygon in the last two or three months that i have noticed

and i just wanted to give a summary of it so there are a lot of copycats in the

polygon network and uh there's some problems being created by these copycats so a lot of good providers a lot of

reliable swap providers from ethereum network like quick swap sushi swap one inch they've all moved into polygon

network and started providing reliable swaps especially quick swap is one of the

exchanges that i use if i want to quickly swap and actually reliably swap anything in the polygon network

but a lot of decentralized exchange forming the apps

like from the binance marching have also moved into the polygon ecosystem apes walt finance are

a couple of ones that are worth mentioning and they also have reliable liquidity

pools and reliable farms but there isn't as far as i know in my opinion there isn't a reliable market leader like

pancake spa like pancake swap is the is the default go to service in binance marching for

anything right now and there isn't a default market leader yet in the polygon ecosystem in my

opinion again in ethereum for example you have unisop and you don't have something very similar to that in the

polygon ecosystem quick swap is probably very reliable in terms of its map service and

you know there are some forming services that have come up but but nothing that is actually a market leader in polygon

ecosystem as a result what is happening is that there are a lot of incompetent and scam

groups that have started and they are they are doing what is called as a honey trap

d app or a honey trap d5 so what is a honey trap defy any drop defy is where you know they are basically trying to

scam people by giving a large apr percentage so in decentralized finance not only in

decent smash even outside as well in some cases but in crypto there is a concept called inflationary asset an

inflationary asset is where there is no fixed amount of tokens they have come up with an inflationary

mechanism where tokens are minted with every new blockchain block so for example in binance merchant that is

every few seconds it gets mint polygon also because of the polygon ecosystem every few seconds coins are being minted

so these coins are inflationary which means that they can mint millions of coins on a daily basis

and these new providers they are using this inflationary mechanism or this minting process to give away new coins

like free basically they give like 100 000 apr to some some of the exchanges or some of the new exchanges give away like

200 000 percentage apr even million percentage apr sometimes making you farm them using your matic or stable coin

stable coins the intent is that they are trying to get your stable coins they are trying to get your greed um and make

sure that you invest your matic or stable coins to get their coins which become worthless after a point of time

there are a lot of exploits that have happened and once they have enough money in the

account enough money invested using these matic or the spoil stable coins they either get exploited i mean i

put exploited in codewords because you know they could they have written the code the smart chain code and smart

contract and they know probably where the vulnerabilities are they could probably be using that to exploit

themselves which means that they can take away the money without anybody knowing because it just moves into

another uh wallet or another exchange address or they uh rug the liquidity i mean there

are providers who blatantly rug the liquidity that's like almost you know setting up a website setting up a smart

contract just for the purposes of stealing money from people and there are a lot of polygon exchanges that have

done that not that it hasn't happened in binance or smart chain but because this is relatively new in polygon it is more

noticeable probably finance has settled down like i said because of more stable exchanges that have come up

and a lot of these druggings have happened in the last two or three months and

um essentially there are there are monitoring tools like rugdock for example they keep monitoring for such

vulnerabilities and ah in the next episodes we'll probably what we'll do is we'll look

into a few of these with examples like you know iron finance for example uh there's this uh this poly eld for

example there are there are common examples which i had tweeted about at the time when it happened

where this has happened at a very very large scale where people have lost a lot of money and they've walked away with

millions of dollars so how do you stay safe till that point right i mean how do you what what are the safety guidelines

we can follow in polygon ecosystem or any ecosystem not just polygon even in binance machine i've said this before

make sure that your decentralized finance decentralized application is audited by

a reputed organization and make sure it's a full audit like especially organizations like zertic you know if

you don't see organizations like smart certificate or you know big names then then it means

that it's a small audit organization which could be colluding with that uh smart chain organization itself for

collating with the d5 company itself so um also make sure that they're authenticated by for rugging uh by

companies like red talk for example the code could be really competent whereas uh rugdock might say that you

know if the the owner has not done kyc and they might any day they might run away with your money so this is like you

know using an antivirus and using and also an anti-malware to protect your computer so we need to be using

different tools or different techniques to be protecting our money from these malicious decentralist applications

and be very careful when a new decentralized application is offering like two thousand percent three

thousand percent apr and it's staying on for a few days which means that um even after like three or four days if

the if the apr percentage is like you know three thousand percentage four thousand percentage that potentially

means that they're lining you up for a rugging process or they're lining you up for an exploit where they're going to

take away your money and run away so remember that in pancake spa as well in one of our episodes we covered that

as soon as the liquidity pool is created the apr is insanely high like you know it's thousand percent plus and so on

and uh in a few hours uh it becomes normal as soon as as soon as more and more people start forming and the

liquidity uh becomes stable it becomes like you know 500 percent in less than 500 percent and 200 to 300

percent is probably what most of the aprs look like and today actually most of the stable pools uh with with minimal

impermanent loss is about like less than 100 percent that's actually a safe and normal scenario

so i also want to update about two new investments that i had posted in my twitter and also why

you know follow me in twitter helps because sometimes these tweets i can post quite quickly when i'm

getting it getting into a new project or a new crypto investment for example so coin 98 and krw uh king d5 are the crown

crypto currency are the two ones that i posted on august 7th but roughly about two weeks back coin 98 is a new wallet

and a new ecosystem they're creating a new d5 wallet and from a company called coin98 labs and their um ecosystem is

really interesting so i just formed started farming on coin 98 again uh in in coin ended i was forming in pancake

and the king d5 krw crown i was forming involved finance and with these farmings

i kind of came across these two projects and i tweeted about them specifically i don't tweet about a lot of projects in

very rarely you know once in two months i tweet about uh a new project or a new crypto that i'm getting into

so um again you know when i share my investment that is only for the purposes

of letting people know that i'm getting into a new crypto not that i'm trying to

get people to buy into that ecosystem so i expect that you go and do a little bit of research you read about the project

and if you are also interested you diversify and get into that project that's the expectation why i'm tweeting

about these investments so let's look at the prices of what those two cryptocurrencies did in the

last two weeks so crown for example krw went up from point zero one nine dollars about less than two cents to about five

cents nearly on the 23rd of august so in about two weeks this is from coin stats again coin 98 uh it went up from nearly

about 1.11 on 7th of august to worth 6.29 on twenty fifth of august and and twenty six it had come down like less

than five dollars but again the highest price that reached was about nearly six point two nine dollars if you compare

between the price differences crown did almost like 257 percentage in terms of value and coin 98 did about 566 percent

in just two weeks time and in this market so while other coins have done

relatively well you know they've gone up 30 40 percent this is just an example to say that if you time it well and if you

get into the right project at the right time you can make like nearly 200 to 500

percent even in any kind of market uh as long as you have invested early and you have invested into the right crypto

which is backed up by a right team or a good team basically so again if you put thousand rupees into

either one of these coins crown would have given you uh an investment of a return of investment of about two

thousand five hundred rupees in two weeks and the coin 98 would have given you about 5600 rupees in two weeks if

you had got out at the right point of time so one of the reason i emphasize this is because when i had tweeted about

it a lot of people assumed that it was about defy liquidity and forming and uh they were not ready to get into define

liquidity and forming it wasn't about that it was about the concept that you can invest into a crypto early enough

by using a decentralized exchange where you're not controlled by a centralized section so you don't need to wait for it

to be listed in a centralized exchange like puzzle x or binance or any centralized exchange for that matter so

people were tweeting me and saying that i can't buy it it's not in wazirex it's not in binance it's not in

that exchange but that's the whole concept of my episode 24 and 25 and 26 where

if you are in a decentralized exchange you can quickly buy and sell without having to depend

on a controlling organization like a centralized exchange and only after they list it that you can buy that's why we

get into decentralized finance where it gives us the ability to buy into a crypto early enough before it even gets

listed into a centralized exchange so example is uh ship coin shiba you know which i had tweeted about nearly two

months before it even got listed in wazirex or any of the uh centralized exchanges that you can buy it in a

decent listing where it was only a fraction of the cost before shiba you got popular and everyone started talking

about it so the concept is that you need to get into a project early and i'm not an investment expert i can't read graphs

or charts or candles or any of it all i do is that if i look at a good project i believe in the team i read about the

team i read about the project and i believe in the project and i i feel that it is likely to increase in value

because of the road map that they have published and what they have done to that point of time till that point of

time now not all investments go as planned and while i talk about the success stories i also need to talk

about the facts where um on occasions where it has gone bad as well so most of our cryptos the top 10 cryptos for

example you know grp and scale and all of those have done relatively well and some cryptos like zap for example

haven't done enough but vex is an exception where it hasn't done well and it has also done really badly

in the last two or three months so i mentioned it on 6th of june as an option to getting into polygon and i did take a

stake in vex at that point of time and at that point it was about nearly five cents and after i had tweeted nearly

about a week back a week later it was about eight cents it does it did increase about 30 or 40 percent on the

14th of june but after that it was hit by several factors and it had fallen down uh nearly 85 percent

so if we had put thousand rupees in vex at that point of time now it is currently sitting roughly around 155

rupees so it has lost nearly 10 times its value so it's fallen down about 85 percent so to get back into profits

without doing anything you need to put 900 per hour you it needs to do 900 profits to be able to get back into

profits or even to recover the money that we have invest and like i always say i don't um sell it

and as long as i don't sell it it's a paper loss only at that point of time and

that's the same strategy i'm using for vex again you know everybody's individual circumstances differ so

um i have been farming using wax what i've been doing personally a lot of people have been asking me is that i've

been farming using vex using vault pools at 100 apr so for the last two and a half months my vex is not sitting idle

whatever amount of money that it has lost i'm still getting money on a daily basis because of the fact that i'm

putting it into a lossless forming or no impermanent loss i'm just putting it into a vex pool

and i'm farming it and i do keep sharing whatever i found krws for example crown is one of the projects that i came

across from vex and then i was farming it for free and all the krw that i got for for free

that had all increased in value as well so all of this farming has meant that i am able to reduce my profits i'm going

to reduce my losses for example but also in the last two and a half months whatever profits i've been making

uh i've been taking a small portion of it and i've been buying more and more vegs to reduce my average price so

as a result my dollar cost average is not 85 percent down is probably around 35 percent or 30 35 to 40 percent so

if the uh vex price increases by 100 or it goes to about roughly about you know um one one cent or one point five cent

point zero one five cent i would have probably made a a profit or near enough to make a profit

that's one of the ways where i'm reducing my risk because when i'm confident in a project i keep investing

when it goes down i consider that as an opportunity to buy and i keep investing in it again and that is not

something that will work for other people i completely understand it but like i

said i'm not putting new money into it i'm just putting the profits that i'm getting from

farming that liquidity forming that vex pool and putting that money back into vex or buying back into wax because i'm

doing a dollar cost averaging or reducing my dollar cost average now uh one of the reasons i emphasize is

because i share my investment on twitter on youtube on the basis that you've watched my episodes and not

blindly buying into crypto without understanding any of the details i take a lot of

pain and lot of effort to make sure that i explain what i'm doing not just plainly saying that you know you buy

this or you hold this and it is going to get bigger i don't promote a coin blindly so i explain what i'm doing and

i hope you understand the concepts of diversified investments taking your profits realizing your profits when

you're doing well and not just sitting at idle uh with the paper profits and maintaining

liquidity you make sure that you maintain liquidity so when there is a market dip or a retrace that you're able

to reinvest and then you're able to buy back again or sell again and it's a cycle and i've explained this in episode

15 and multiple episodes about realizing profits and and doing small trades to keep your profitability going

also how you can lower your average cost of investments and how you you hold your assets hold off on your life huddle as

it is called so that you don't sell at a paper loss and patience and understanding of the

projects that i have invested helps me in staying patient with those projects as well so most of my videos and tweets

that i share are people uh offer people to make an informed decision so that you watch my videos you have an

understanding if you don't understand if you just blindly buy into it because of my tweet then you're probably going to

be ending up with a loss and i would strongly suggest an urge that you don't do that

by just blindly looking at my tweet and because i've bought something you go and buy it do your own research make sure

that you understand what works for you because what works for me like i explained may not work for you as well

so safety before profits is most important so hopefully this has given you a basis of

understanding because if you are a new follower for example you wouldn't have understood some of these concepts to

begin with next video hopefully not after two months is that i'm going to be uh

talking about auto compounding going to explain auto form and beef finance we've talked about auto compounding but we

look at the differences a bit of more calculation i will simplify the auto compounding calculation in my next video

and also why using auto compounding in certain cases is better than using normal d5 and i

will share my current investments in auto compounding and generally in d5 and also my normal positions in my next

video so hopefully this was useful until next time thank you bye you