This is an obvious take but DeFi is interesting & moving forward but the profit games have gotten quite cynical-inducing and the soul-less profiteers have infiltrated the idealist since many months back. Finding it increasingly hard to "invest" in DeFi around these valuations.

Now we're at the point where valuations for new projects spike up so fast the r/r is already unattractive from the get-go, given how new, competitive and changing the whole thing is. So it annoyingly starts to feel like the regular bull market game of coinflipping.

In 2017, the ICO market was a game and you felt a bit annoyed for not playing because of the gains (if you have a responsibility to return profits). DeFi is not quite as bad because the pseudo-equities are often valid products whereas "Bitcoin Diamond" and utility coins were not.

As such it seems to me that DeFi is both an investment game and and a coinflipping game at once now, but if you view it as the former, it's probably going to be quite a challenging environment to dip your toes in. It's like trying to read a book in a busy night club.

Hardest thing for me to decide right now is what level of allocation you'd want right now, at current valuations. I personally don't think more than 10% is very wise.

As a cryptocurrency investor you may have to withstand "missing out" on a lot of the over-enthusiastic activity right now. This is not a pleasant experience and you're going to feel awful about yourself.

The way to "cope" that I use is that I've learnt that the best way to be long-term profitable is to play a defensive strategy when you're uncertain, and wait for the truly amazing opportunities to be aggressive. There *will* be more of those. You may have to miss some busses.

I had to close a BTC long leverage position held from $16k at $32k even though I was still very bullish. The same way I feel about DeFi exposure now (fine to remain long-term bullish, but hold positions you can stomach some catastrophies for).

I know some of you are totally overwhelmed with excitement for DeFi and you feel like you're getting in on the groundfloor of something world-changing. But only a few of these tokens will remain in the longterm. Even if DeFi pushes on and breaks boundaries.

You have to separate general excitement and overarching bullishness from portfolio construction, they're entirely different things. Just look at the dotcom bubble.

Everyone was kinda right, almost everyone got kinda rekt.

Just my 2p anyway. In all honesty kind of grappling with the reasoning myself at the moment.

In some situations I feel like I have full clarity on market subjects, other times it's more cloudy. This is one of the cloudier times. But I don't see anybody else talking about it, so.

Need to point this out: by going defensive, I don't mean going into fiat. Defensive for me means 80BTC/20ETH. Never exit fully into fiat, unless you're finished. https://twitter.com/ercwl/status/1358394258919727105?s=19