Borrowing money without a bank, trading stocks without brokers, raising money without venture capitalists, printing money without central banks and so much more.
We take a deeper look into Decentralized Finance – DeFi and how to access it?
In order to trade on DeFi, you need to Ethereum. There is (currently) no other way to get your hands on Ethereum besides going through a centralized exchange.
Visit our exchanges pages for more info. We recommend the following trusted exchange.
Transfer Ethereum – ETH to your new MetaMask wallet from your existing wallet on the exchange. You need this to purchase/swap your preferred tokens on a decentalized exchange – DEX.
The safest decentralized exchange to buy your preferred tokens on, is Uniswap. Visit Uniswap and click “connect wallet”. MetaMask will ask for your signature, this is completely safe.
Find your token in the Uniswap search bar and enter in the amount of ETH you would like to swap for your preferred token.
To make sure you are trading the right ERC-20 token be sure to check the official address that can be found on Coingecko.
Decentralized Finance, abbreviated DeFi, is a set of new financial instruments based on the decentralized systems. The main goal of DeFi is to create a new financial system that is self-contained and independent of centralized institutions.
DeFi platforms enable savings, loans, insurance and a host of other financial transactions to be carried out anywhere, anytime. All that is required is an Internet connection that provides access to the decentralized applications.
These decentralized applications make use of the so-called smart contracts. Through these it is possible to take care of all the above mentioned matters without using an intermediary. DeFi gives people without a bank access to financial services through blockchain technology.
Beware of the inherent risks of DeFi before entering the space! Learn more here!
In summary, the following elements are characteristic of DeFi protocols.