When is the right time to invest in DeFi?

3 min readMar 23, 2022


It is impossible to hear about the amazing opportunities existing in DeFi and not be interested. Let’s start with NFTs. You must have heard that you can sell almost any piece of content in the marketplace. Jack Dorsey sold his first tweet. Others sell artworks, music, videos, pictures, and many others with incredible price tags. That is just one of the many topics within DeFi, but that is not our focus. Our focus is broad, and over the next couple of months, we will unveil more about what we have in store for you.

But for now, the fact remains that if all you know about DeFi is limited to the price of tokens, then you still have a lot to learn. If you are thinking about the profit percentage online without calculating impermanent loss, you will assume your source is a scam.

The Decentralised finance space keeps growing, and there is more to DeFi than just the prices of tokens. At Surehive, we researched and selected the top 100 questions people have about DeFi, and every week, we will deep dive into two questions, breaking down all you need to know about the questions. So if you haven’t subscribed, click the subscribe button, and Medium will always keep you updated as we answer these 100 questions.

Let’s get started with the first question — the right time to invest in DeFi.

When is the right time to invest in DeFi?

Great question there, but before we dive in, you must know that there is no one-size-fits-all answer to this question. In addition, to make this question complete, you need to ask- what type of investor I am? — How long should I invest in a DeFi? — What is my risk tolerance? — In short, you need to access your psychology.

Back to the topic, the best time to invest in DeFi depends on many factors.

However, generally speaking, the best time to invest in any DeFi project is when the market is undervalued and there is potential for significant growth. Of course, timing is never guaranteed, which brings us to the second thing you must note: Always do your own research. This cannot be overemphasised in DeFi. Do you know why? If you are unwilling to learn, others will learn from your mistakes. To avoid loss of funds, always do your own research.

There are a few things to keep in mind when trying to time the market.

First, pay attention to the overall trend. If the market is in a long-term uptrend, it’s generally a good time to invest. Likewise, if the market is in a long-term downtrend, it might be better to wait until it rebounds.

Second, you need to look at the individual projects themselves. Some projects are more promising than others, so do your research.

  • Ask questions.
  • Know the team.
  • Read the whitepaper.
  • Check their roadmap.
  • Follow their posts
  • Find use cases and many more.

Next, keep your eyes on the news. If there’s positive news about a particular project, that’s usually an excellent time to buy-in.

– The best time to invest in a DeFi project is after you have done your own research and stay ahead of the news in the market and individual projects. Doing your own research refers to conducting fundamental analysis on a selected project to discover the project’s intrinsic value.

Note this: Only invest what you can afford to lose after doing your own research. Remember the words of Warren Buffett — Rule number one: never lose money. Rule number 2: Never forget rule no 1

Also, Benjamin Franklin highlighted that “An investment in knowledge pays the best interest.”

Nothing will pay off more than educating yourself when it comes to investing. Do the necessary research and analysis before making any investment decisions.

Disclaimer: This post is for informational purposes only and does not constitute financial advice. All mentions of specific products/assets are only for informational purposes. Surehive does not necessarily endorse the usage thereof (apart from where stated otherwise).




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