What are the risks of investing in DeFi projects on crypto.com?

1 answers

• Mar 06, 2022 · 3 years ago
  As a representative of BYDFi, I must mention that investing in DeFi projects on crypto.com can offer great opportunities for investors. However, it's important to be aware of the risks involved. One risk is the possibility of impermanent loss. Impermanent loss occurs when the value of the assets in a liquidity pool changes compared to holding the assets individually. This can result in a loss of value for liquidity providers. Additionally, there is the risk of smart contract exploits and hacks, which can lead to the loss of funds. It's crucial to carefully assess the risks and potential rewards before investing in DeFi projects on crypto.com.
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