Guide to Investing in Decentralized Finance (DeFi)
Dec 8, 2024 08:28:28 AM
There are stablecoins and exchanges that allow you to make trades with your cryptocurrency, as well as loans you can take out or put on the blockchain—all this and more has been made possible by decentralized finance.
What is Defi?
Defi is a decentralized financial system. It's a collection of financial applications that are built on top of the blockchain, which is the technology that makes it possible for you to use cryptocurrency in day-to-day life.
Decentralized finance is a new model of finance, based on a cryptographic monetary system such as Bitcoin. Decentralized finance is the revolution that will disrupt the financial industry, in which the traditional banking and investment sectors will be disintermediated with cryptocurrencies.
When you hear the term "decentralized finance" or "DeFi" the first thing that comes to mind is likely the idea of creating your own money. However, you can also turn your cryptocurrency into other cryptocurrencies. This is called trading pairs and it is a form of investing in DeFi. Trading pairs are when you trade coins for another coin or token. You can find trading pairs such as APTUSDT https://www.coinw.com/spot/aptusdt on exchanges, platforms like CoinCoinW, and even block explorers sometimes.
Earn Yield With DeFi: Lending
Lending is one of the most popular ways to earn a passive income on DeFi. The process of lending involves giving out money to people who need it, while you get paid back with interest. If you’re interested in lending, you can use an existing platform like Compound or Dharma, or you can create your own loan based on the protocols that are built into these platforms.
How do you get started with DEFI?
Decentralized Finance, also known as DeFi for short, is a new frontier for the finance industry. It’s been created by innovative applications that allow users to create financial products without the need for a centralized authority.
The first step in getting started with Decentralized Finance is to choose a wallet provider and buy cryptocurrency such as LUNC. You can do this by signing up in an exchange and buying some BTC or ETH. You can then transfer the LUNC crypto to your chosen wallet, either online or hardware wallet.