Our concern is not for nothing, there is a powerful financial crisis on practically every continent at the moment, and physical money has never been so low as it is today.
For years the stock market has been suffering from increasingly violent falls, there is a war going on right now. The situation for the stock market could not be worse.
Unlike physical money, cryptocurrencies are experiencing one of their highest moments since their inception.
Cryptocurrencies are a kind of digital money, unlike physical money these currencies are decentralized. Which means that there is no government institution behind them.
Perhaps this is one of the reasons for their success, if so, there are obviously several other reasons for the successful life that Cryptocurrencies have.
There are huge amounts of money hanging around the crypto market, those who work with it deal with large fortunes on a daily basis.
For better returns on their investments, the way cryptocurrencies are handled changes from time to time, and new features are added every year.
There are several currencies to receive investment, and there is no shortage of incentives in this area.
Cryptocurrencies are a successful product of the capitalist way of life. There is nothing that screams Freedom of choice more than the existence of these currencies.
What does TVL mean
As mentioned earlier, novelties in the crypto system are a completely common thing to appear.
In a matter of months there is always a more interesting way of knowing whether a coin will be valued or not.
And this is one of the reasons why the cryptocurrency system is considered one of the most transparent of the entire financial system.
Truth is something that is hyper-valued in this field, there is no time to fool around, no time to get lost.
Currently as one of the novelties we have TVL, something that comes to assist us in our investments.
TVL stands for total blocked value, it is a kind of metric that shows us in dollars how much money has been blocked for investment in a DeFi network project.
These values show how much an investor can trust when investing in a project, the amount that is locked up is still to come in, so its official valuation is not happening at that moment.
What is TVL in crypto
In the crypto world, TVL is something totally significant to the investor experience.
It is a demonstration of how seriously the game takes the money that has been invested in these coins.
TVL practically makes the measure of value that is still locked up in the smart contracts of the DeFi network crypto projects.
This area grew dramatically in the year 2021, something that is here to stay and has a great influence on investors' decisions.
Is it legit
TVL is a totally legitimate and completely important practice for improving the return for those who decide to invest.
We have already mentioned how seriously those who make the rules of this game take investors' money, TVL is one of those practices that demonstrates this to players.
The way we invest money has changed in recent years, and Cryptocurrencies are the flagship of this change.
There is nothing to fear when researching TVL metrics, this is a very well paved path to a return on your investment.
Speaking of paved paths, this is something the cryptocurrency system knows how to do well.
We all know the volatility of these digital currencies, one hour they are at the top of the mountain, a few moments later they can fall dramatically.
Volatility is not such a bad thing, it shows how healthy a coin is, there is no such thing as a coin that is always at the top, either in or outside the crypto world.
Anything that comes along to help you decide where you will put your investment is a valid thing, so there is nothing to be wary of about TVL.
And another thing, nothing that is not valid will pass through the eyes of those who run the rules of the system that deals with cryptocurrencies.
Why is TVL important in DeFi
In easy-to-understand words, we can view DeFi as a subsystem of the Blockchain.
But don't be fooled by the word "subsystem". This doesn't mean that DeFi is something to be left out; on the contrary, it is a hand on the wheel for the investor.
TVL is something of extreme importance to this system, as its existence complements the reason for DeFi's existence.
DeFi does not decentralize cryptocurrencies, but it does decentralize financial services. Making the bank and customer relationship a person-to-person thing.
At DeFi you do not invest specifically in cryptocurrencies, but rather in project smart contracts made by financial organizations.
There is even the possibility of making and giving cryptocurrency loans.
To know how valuable the project to invest in is, you need to know how much locked up money there is, and that is where TVL comes in.
The existence of one is completely correlated to the other.
How to get legit signals
There are several news channels specifically focused on the world of cryptocurrencies.
But not all of them can be trusted, obviously. You have to choose one that will publish what you want published, based on reality, without any beating about the bush.
Fat Pig is one of the most renowned communities reporting on everything related to cryptocurrency finance.
Daily publication of news, documents, spreadsheets. All this in one place, the Fat Pig signal group.
Specialist crypto finance employees and expert economists are responsible for publishing the necessary signals for your investment.
Legitimate news is the favorite target of this community, make your money grow in a healthy way by updating yourself with the folks at Fat Pig.
To get to know and be part of this family, click here Fat Pig Signals . If you are already part of this great community, influence others to follow your path and join the Fat Pig group, leave your comment below.