Trading vs. DeFi: Hard-Won Lessons from a Year in Crypto

I expected a blend of challenges and opportunities when I stepped into the crypto sphere a year ago, mainly through decentralized finance (DeFi) platforms like Elephant Money. The journey has not disappointed me

I've found a world where fortunes can be made—but not without a fair share of risk and volatility.

My traditional business experience provided me with stable cash flow, but my portfolio's rapid growth, to the tune of an additional $270,000, came from crypto investments.

Now, with net worth edging near $1 million (counting high-risk funds), here’s what the past year of navigating the peaks and valleys of DeFi has taught me.

DeFi’s Mixed Bag: Cash Flow and Losses

The results regarding Elephant Money and other DeFi investments were mixed. In Elephant Money Futures, I experienced a loss of $73,000; Elephant Money NFTs cost me another $40,000.

Additionally, my involvement with Trage, another project, resulted in a $78,000 setback. These investments underscore that not all DeFi platforms or products are bound for success.

But DeFi isn’t without its silver linings. Elephant Money still provides cash flow potential, and it’s clear that, with the right approach, certain DeFi ventures can deliver value over time.

However, the losses serve as a reminder that diversification and cautious optimism are vital in this field. No single platform will always offer returns, no matter how promising it looks.

Trading: The Real Wealth Driver

Interestingly, while DeFi investments provided mixed results, trading brought significant gains. My most lucrative ventures came from buying and selling more volatile assets: TRUNK from Elephant Money yielded a $130,000 profit, while SVNN brought in $100,000. Even a playful foray into meme coin GOAT generated an impressive $200,000. In comparison, blue-chip coins added a modest but steady $30,000.

This success with trading versus DeFi underlines a crucial takeaway: sometimes, trading in unconventional or high-volatility assets brings better returns than DeFi investments.

It’s not that DeFi isn’t valuable—it’s that trading has a rhythm of its own, and timing matters more than any “surefire” platform.

Reflecting on Crypto’s True Nature

If you’re pursuing similar paths in crypto, keep this in mind: DeFi holds potential, but it’s the high-risk, high-reward plays that drive the most significant growth.

Crypto, particularly DeFi, demands a level head and a willingness to adapt as markets shift.

My experience this past year reveals the importance of balancing cautious, diversified investments with more speculative moves, especially as no one platform or token will yield consistent gains.

With this perspective, perhaps others will find steadier footing in an inherently turbulent market.