Even if you’re an experienced cryptocurrency investor, there’s a lot you need to know about DeFi, the hot new digital asset everyone is talking about right now.
We’ll go over everything you need to know about DeFi, from its history to how you can get engaged to what tool you can use to keep track of it all.
DeFi was developed to provide an alternative to conventional financial services, just like cryptocurrency was.
Those who don’t have access to or have been disenfranchised by traditional banks can still acquire a loan through DeFi, for example, because it decentralizes lending.
Even if there are inherent dangers to such an innovative idea, DeFi is a solid foundation for a financial future that is more efficient, flexible, open, and, most importantly, fair for all.
Currently, nearly all DeFi protocols and applications are built on Ethereum.
Ethereum is an extension of the Bitcoin technology and concept. Ethereum is a global, decentralized (not owned or managed by a central body) technological network that powers smart contract-based protocols and applications. Similar to Bitcoin, Ether can be purchased on a cryptocurrency exchange or mined (for now).
Keep in mind that DeFi is currently mostly unregulated and not guaranteed by the FDIC in the same way that traditional banks are, therefore investors are urged to conduct research and contribute only funds they can afford to lose.
In the cryptocurrency community, DeFi coins and tokens are frequently used interchangeably. And while they are relatively similar, there are important distinctions between them.
A DeFi coin functions similarly to a digital counterpart of a fiat coin in that it transfers value during a financial transaction. DeFi tokens are based on and frequently called for their native blockchain networks. Maker, Compound, Uniswap, Aave, Chainlink, and Ankr are among the most popular DeFi currencies in the spring of 2021.
DeFi tokens also convey value, though not always in a monetary sense. Utility tokens can be used as passwords to enable access to a resource, asset tokens can be used to represent physical assets such as real estate, and there are also non-fungible tokens (NFTs) that represent unique “things” such as digital art (Nyan Cat was recently sold for $600,000). Additionally, DeFi tokens differ from currencies in that they can be created on current blockchain networks.
Using DeFi for lending and borrowing assets is one of the most prevalent uses of the platform.
Step 1: Set Up Your Crypto Wallet
Making a crypto wallet is the first step.
When it comes to storing and exchanging DeFi tokens, your wallet is the place to go. There are a wide variety of wallets available, some of them are linked to exchanges where you can buy DeFi coins.
MetaMask is a well-known wallet, exchange, and browser add-on all rolled into one package. It is commonly used by DeFi investors since it supports Ethereum and connects users to various DeFi protocols.
Step 2: Purchase Your DeFi coins
In order to participate in the DeFi protocol, you’ll need to invest in the coins that support it.
Ethereum is currently the platform of choice for most protocols, so you’ll almost certainly be purchasing Ether coins or ERC-20 tokens.
Step 3: Participate in Your Protocol of Choice
DeFi is just as dependent on lending and borrowing as our traditional financial system. However, one of the advantages of DeFi is that it allows its users to borrow and lend assets without losing their currencies.
There are a number of loan and borrowing protocols available, but we’ll utilize Compound as an example.
To lend or borrow tokens, go to Compound’s website, connect your wallet, and then use the protocol to engage with it. In Compound, you can earn interest on the money you lend. If you take out a loan, you’ll be required to put up the entire amount as collateral.
RoboFi (https://robofi.io/home/) is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.
VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.
Website | Twitter | Telegram| Telegram News | Reddit | Litepaper