4 Avoidable Mistakes For A Defi User

In this post we’ll be discussing 4 Common Defi mistakes that even an experienced user makes.

Decentralized Finance (DeFi) is a rapidly emerging blockchain-based movement that gives the traditional financial system the core benefits of transparency, security, immutability, and efficiency. The numerous profitable, high-interest earning opportunities accessible throughout DeFi loan and trading platforms are primarily responsible for this expansion.

At Umee, we consistently encourage and educate our community to avoid making defi mistakes. This blog serves as a short refresher for existing users and a helpful reference for new users looking to avoid these common mistakes that may end up losing funds.

Let’s deep dive into these mistakes.

1. Sending token to the wrong address

By definition, blockchain transactions are irreversible. While a bank may be able to refund cash to your account in the event of an error or fraud, all crypto transactions are irreversible. That implies users must send tokens to the right addresses and provide their addresses to others so that they can receive transactions.

While staking your funds, Make sure your wallet is compatible with the network you wish to interact with and that the right network is selected before performing any transaction.

2. Not Keeping Seed Phrase Safe

One of the most crucial aspects of your crypto wallet is the seed phrase. Even if your wallet has been lost or deleted, it allows you to access your crypto wallet and saved assets. To safeguard access to your crypto assets, you must keep your seed phrase private.

You should avoid:-

• Take a picture of your seed phrase.
• Saving seed phrase into Password Manager App or Cloud Storage.
• Emailing seed phrases to yourself.

A seed phrase, unlike a password, cannot be altered, therefore it must always be kept safe and accessible. Furthermore, if you have a big quantity of funds in your crypto wallet, missing or having your seed phrase stolen might result in a huge loss of funds.

For more information please read this detailed article about keeping seedpharase safe.

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Cross The Defi Waves: Umee

Umee is a cross chain DeFi hub that interconnects between blockchains. As a base layer blockchain, applications and money lego primitives can be built on top of Umee to access cross chain leverage and liquidity. The Umee Blockchain facilitates interoperability between the Cosmos ecosystem, Ethereum network, side chain architectures, layer two scaling solutions, and alternative base layer protocols.

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