Binance Smart Chain’s enhancements to cryptocurrencies such as extremely cheap and fast transactions has attracted a large mass of users. So far in 2021 we have seen significant growth, due to a large number of projects that pop up on the network every day. Many of these projects even offer an attractive user interface, great projections, good rewards and returns based on the contribution of liquidity.
Even more attractive is the fact that making a trade on PancakeSwap only costs about $.05-$.10 in gas, with an almost instantaneous confirmation. This same example is repeated in the contribution of liquidity to obtain returns, and in the whole range of protocols that are being developed in BSC, where the incentives to offer liquidity can reach up to + 100% annual percentage of return (APY).
Because of this confluence of incentives and benefits, users from all over the world have joined this network, both veteran crypto traders and rookies. It is in the latter where I’d like to focus some attention. Lately many users are joining the Blockchain world, especially the Binance Smart Chain, but they lack knowledge, despite the fact that there is a plethora of information on social networks where they can they can get advice and information, it is NOT always good advice or information. That is why we always say do your own research (DYOR).
Motivated by the desire to reach the moon, there are projects that may look attractive to users who have not yet reached the level of maturity in crypto knowledge, and it is there that these people make mistakes. One example, are those projects or investors that somehow inflate their coin and after a short time the coin plummets. They experience a parabolic rally before losing much of their momentum. They promise significant returns from a small investment, and end up being similar to a Ponzi scheme, keeping in mind that new retail investors have little or no knowledge about the mechanisms of the Ponzi scheme.
As investors of the new generations are becoming more enthusiastic about cryptocurrencies and their way of informing themselves largely depends on social networks, there are many projects that depend on these networks to advertise their ecosystem. So far 2021 has been productive for the DeFi and BSC world, and it is not surprising that everything continues like this or better for the rest of the year, numerous projects, innovations, technologies, everything is encompassed and ready to have a positive impact to continue the year to prosper.
Therefore, it is necessary to emphasize that they always look for good information, study the projects and persist in learning more about their development. In Binance Smart Chain we find a very large number of projects that are worth studying. At BSCTimes.com we have a lot of information in our Learn section, and also about the projects and their news, it is just a matter of taking some time, a pot of coffee and starting to read.
As always, keep doing things at your own risk, and always DYOR.