DeFi is the future of finance, but before any investment, the interested person needs to know the crypto market and their own profile – if they are a bolder investor, who allocates their resources in options more tied to risk, or if they are more conservative.
“Knowledge is essential, even more so in a market with so much volatility”, advises attorney Raquel Vieira, author of the book “Simplifying Cryptocurrencies” and responsible for the topic on the Top Gain channel.
“The crypto market is quite volatile. So before investing, people need to understand how it works, which projects are the most reliable, and also know how much they are willing to risk”, Raquel said. “It’s not that cryptocurrencies are not for everyone. I believe they are! However, in different doses”, she said.
Check out some excerpts of the interview with Raquel, with exclusivity to PanoramaCrypto.
Although you have a law degree, you have become an influential personality in the crypto universe. How did this happen?
Raquel Vieira – Interestingly, it was by chance. I took my bar exam in 2019, and my specialization is criminal law. I was in a frustrating period at the beginning of my career, with many moral issues, precisely because I work in this area.
On a particular occasion, I visited a friend who told me about her desire to buy bitcoin and its currency valuation. That struck my attention, and I did some research on the subject. I had heard of bitcoin but had no idea what it was about. However, once I started studying it, I never stopped. Today I believe that cryptocurrencies are the future of money.
Was it as a result of this experience that you wrote the book?
Raquel Vieira – Yes, I felt the need to explain how the market works, what some terms mean, and more technical issues in accessible language. The book follows a line of reasoning, bringing the history of money, the emotional relationship people have with it, and the perspectives for the future, with the growth of financial solutions based on decentralized finance and several innovations that are still to come.
One of the chapters of the book is written by the lawyer Thais Lamas, who also addresses the topic of fraud and scams in the market, such as pyramids and money laundering, and guidelines for people not to fall into this type of fraud, which, unfortunately, is still very common in Brazil.
In addition, we also brought more technical content, with simple language, explaining what cryptocurrencies are, what blockchain is, what bitcoin is and how it began, what benefits cryptocurrencies and decentralized finance brings to society, among other topics. We also talk about the Ethereum system and how smart contracts and daps work. The goal is to introduce the interested reader to investing in cryptocurrencies in the market with an accessible and more straightforward language.
Based on your experience, what are your recommendations for an investor just starting out?
Raquel Vieira – I see many people wanting to make Day Trade, even without understanding exactly what a cryptocurrency is, its fundamentals, and how the market works. I think this is a mistake because the first investment should be acquiring knowledge.
The market is highly volatile, so the person needs to know what he is investing in and learn about his investor profile, whether he is willing to take more or less risk. It does not mean that crypto investments are not for everyone, but there may be different doses depending on the profile.
One of the main recommendations is to get to know the projects better before investing and make investments incrementally, not all at once. But, of course, the ideal is to start with bitcoin, the first currency that appeared on the market, and we already have a history of studies. Besides, everything that happens with BTC ends up impacting other currencies.
After gaining more experience, the person can expose himself to other projects that make sense to him. We have a gigantic universe of options, such as DeFi applications, games, NFTs, smart contracts, and others. And innovations come up very quickly.
What is your guideline to identify a project that is considered reliable?
Raquel Vieira – After starting with bitcoin and understanding how the market works – and this can take some time – it is essential to study the currencies and their projects. A tip is to check who is behind it; it is more difficult to trust if it is an anonymous person. On the contrary, someone who already has recognition in the market tends to guarantee this credibility.
Another important aspect is to look at the market capitalization of the coin. A cryptocurrency with a higher capitalization has more investors and a community, making it safer.
Speaking of community, could you comment on your involvement in the Solana community?
Raquel Vieira – I got to know the project last year, in the first semester, and I believed in the proposal. As I always disclose my investments on social media, I told them I was buying. And we saw, in 2021, the currency hitting all-time highs. Because I believed and disclosed it, Solana ended up creating a bond with me.
In this moment of a market downturn, what are your tips for those who want to invest?
Raquel Vieira – When there is a downturn, it is time to buy cryptocurrencies – those with which we identify. We tend to want to buy what is behaving positively and sell when it’s the opposite; this is common. It’s part of human nature.
But when it comes to investments, especially when there is volatility, the reasoning must be the opposite. The fall is an opportunity. So you have to go against the herd. That is, when the price of a crypto has fallen, it is time to buy; when it rises, and everyone wants to buy, then it is time to sell.
And what is your view about the new emerging environments, such as games and DeFi applications?
Raquel Vieira – In my opinion, this type of investment has to be a second step. After all, it is still a reasonably new universe. When we have less history of studies, the market is more insecure. For example, I believe that DeFi is the future of finance, but I know that I run risks when investing in it. So you have to be aware of that before entering.
Is DeFi the future of finance?
Raquel Vieira – Yes, I believe that this market will grow a lot in the next five to 10 years, with many innovations. Therefore, knowledge about the sector and its technologies are increasingly relevant.