I decided to profit from my DeFi investment a few days ago by buying and farming Mist. I took precisely $700.00 that is 10% of my initial investment, but I didn't remove any tokens from my LP farming or otherwise known as a self bank account.
Even when I took that amount of money, I haven't updated my portfolio tracker to reflect my profits on BCH or BTC. What I did was deduct the amount of fiat that I invested in it. This way, you understand me better. What I did was change my portfolio fiat value at $7000,00, and I deducted $700 from it, so my portfolio tracker will say that my total investment was $6300.00; that way, in fiat, my portfolio will show a profit.
Still, the same will happen on the cryptocurrency side if I decide to take profits on BCH in the future. If I take profits on BCH, my portfolio tracker will show that my account has less BCH, offering a different fiat value. It is pretty hard to explain, but I am trying to have a mental record of my profits on either BCH or USD, and to me, both profit takings are very different transactions. Leaving the portfolio tracking idea behind and the bookkeeping, now let's talk about the reasons.
I don't see the point of saving every single interest payment I receive from staking if I am not going to be happy or feel happy at all. After all, I am not a bean counter, and I am a crypto enthusiast. The first $300 was spent because I needed to onboard some people I know in the real world. For them to open exchange accounts, it would take them more time, and I wanted them to experience what I am already doing, which is farming, so I had to invest in them to understand why I am so excited about Mist. And the other $400.00 went into buying my personal computer.
I decided to buy my laptop using my credit card because regular purchases give me at least 25 days interest-free, so I purchased my computer yesterday. Still, money will arrive in my bank account at least three days from writing this article, so by utilizing my credit, I can enjoy my PC today and use and write about it today. Once my money arrives in my account, I will pay my credit card bill and pay off my debt. That transaction won't be wasted because after a few months, my credit card provider will increase my credit limit, and in a few months, my credit file will improve so that maybe I can take a loan to invest in DeFi.
To have the credit, you must use it first so that lenders see you as a trustworthy individual and grant you higher amounts in the future with lower interest rates, so I will continue to work on my credit if, in the end, I see an opportunity to invest, but don't get me wrong, I don't believe on getting in debt to buy cryptos, because cryptos are too risky, pretty much-utilizing credit will be if I see an opportunity that is too good to let go. I will write about it if I ever do take a loan for cryptocurrencies. In the meantime, I don't see any harm in improving it just in case I need it.s
Now my friends know the name Smart Bitcoin Cash, and they know that is a way to have decentralized finances and invest in protocols that work as financial tools of the traditional banking system. One of my friends only knows that he can buy and sell without asking for permission or other personal data. Still, he hasn't tried farming or yield farming or any other form of interest collection using SmartBCH DeFi. The other knows about LP farming but doesn't understand it entirely, but they are all learning as I write this article.
Many people I know have heard about cryptocurrencies because Bitcoin is a legal currency in El Salvador. Many of them know that Bitcoin is too expensive already. They believe in the idea of making yourself rich first instead of making someone else rich; pretty much to them, Bitcoin is too high in price. They don't like the price volatility if they buy at $60k, they don't mind investing a few dollars, but they think that BTC at the current price won't be their ticket to riches. They are not wrong on that, and now Bitcoin is Bitcoin, they want to invest in something with fewer issues.
My family and friends know about Ethereum and Bitcoin transaction fees because since El Salvador went live with the Bitcoin Law, they have been making their homework, so I think that eventually, they will understand that Bitcoin Cash and SmartBCH is the best of both worlds and that BCH can take ETH and BTC places and has a fighting chance thanks to the transaction fees and utility.
I may not write about my investment in the future because I don't want to DOX myself, know that at the moment I won't be selling my Mist and that I will wait a few months so that I can collect some sweet interest, and if in one year Mist is $10 you should know that I will be doing fantastic.
