I’ve spent 7 years in DeFi. I’ve lost money, made money, and learned more than I ever expected.

Here are 10 mistakes I’ll never make again (so you don’t have to):

1. Chasing unsustainable APYs
If the yield looks too good to be true, it probably is. I’ve learned to ask where the yield is actually coming from.

Engineering @Anchorage Digital | 

Crypto/blockchain tech enthusiast

7. FOMOing into tokens without understanding tokenomics
I used to buy the story. Now I break down emissions, lockups, and incentive structures. Most tokens lose value unless carefully designed.

8. Staying too long in ecosystems with fading developer activity
If builders are leaving, I’m already late. Developer engagement is one of the clearest signs of a healthy ecosystem.

9. Underestimating regulatory risk
I used to ignore it. Now I track legal exposure and jurisdictional risks before deploying capital.

10. Believing “this time is different”
Every cycle has the same emotional beats. I keep notes, revisit old mistakes, and remind myself that experience is expensive.

DeFi is still in its early days. The risks are real, but the innovation is too.

If you’re navigating this space, I hope these lessons help you avoid a few pitfalls.

What’s one DeFi mistake you’ll never repeat?

2. Overexposing to a single protocol or chain
Putting all your capital in one place is dangerous. Even the most hyped projects can collapse overnight.

3. Using unaudited smart contracts
I once trusted a sleek interface and lost funds to a basic exploit. Audits aren’t a guarantee, but no audit is a clear warning sign.

4. Not securing my keys properly
Hot wallets are convenient, but they’re not the place to store serious capital. Hardware wallets and multisigs are now non-negotiable for me.

5. Assuming stablecoins will always stay stable
I used to think stables were safe by default. I learned the hard way that understanding the mechanics behind the peg is essential.

6. Ignoring governance dynamics
Low voter participation and whale-controlled voting often make governance meaningless. Now I evaluate a protocol’s political health before getting involved.