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A Guide to Help You Learn How to Invest in DeFi



Decentralized finance (Defi) is an industry that is quickly expanding. By 2020, the overall market capitalization will have surpassed $15 billion. The amount of money locked up in smart contracts has also surpassed $5 billion.

Anyone who wants to be a part of this wave is having difficulty grasping the concept and finding safe and dependable ways to invest in it.

What Exactly Is DeFi?

Decentralized Finance (DeFi) is a network of decentralized financial applications powered by cryptocurrency payments. In general, it is based on Blockchain Technology and Smart Contracts. DeFI’s applications include creating a decentralized alternative to traditional financial services such as loans, insurance, banking, lending, staking, and so on.


Investing in DeFi isn’t the same as buying a “DeFi token” or using a “DeFi wallet.” Rather, you’ll have to look for projects that use the Decentralized Financing model.

What Exactly Are DeFi Projects?

A DeFi Project is any commercial financial service given in a decentralized way.

Decentralized Wallets

Decentralized wallets are non-custodial (no access to others) device-based applications that facilitate the storing of numerous ERC-20 assets and are secured by private keys (12 seed phrases).

Furthermore, because DeFi projects are decentralized, the cash inside is stored and retrieved directly via these wallets. In DeFi projects, decentralized wallets are essential.

Here are some known decentralized wallets

Trust Wallet

The Trust wallet is an Ethereum and ERC20/ERC223 token mobile wallet. The program, which is available for both iOS and Android, offers the finest user experience and convenience.

MetaMask Wallet

Metamask is also a decentralized cryptocurrency wallet and a blockchain app gateway. It’s accessible from Chrome, Firefox, and Brave, and it’s also available for Android phones.

Decentralized Exchanges

Many of the difficulties that centralized exchanges encounter, such as hacking, mismanagement, and arbitrary fees, are solved by decentralized exchanges. However, it has its own concerns with liquidity, which refers to the lack of money flowing through the exchanges, allowing for quick and efficient trading.

One of them is Uniswap

Uniswap is a DEX-based exchange that allows users to trade ERC20 tokens with one another. Uniswap performs the process using a simple arithmetic equation, pools of tokens, and ETH, as opposed to most exchanges, which in their case, buyers and sellers set prices and execute deals.

By funding it with equivalent ETH and ERC20 tokens, any token can be added to Uniswap. To swap any altcoin or ERC20 token, for example, you would create a Uniswap smart contract for that ERC20 token.

How Can You Invest in DeFi Tokens?

*Participate in the project’s initial launch and receive prizes in the form of tokens; if you miss out in the early stages, you may purchase the token on decentralized exchanges.

*In this tutorial, we’ll look at buying Defi tokens through the Uniswap exchange and Trust Wallet. Install ‘Trust Wallet.’ If you already have a wallet, that’s great; otherwise, choose ‘Create a new wallet.’

*You must have Ethereum in your wallet to begin purchasing any Defi token.

* To purchase a token from any Defi project using ETH, we must go to a decentralized exchange using our trust wallet.

* Press the tab that is highlighted with an arrow.

* You will be taken to the Trust Wallet browser once you click. Type the website address for UniSwap Exchange.

* Within the trust wallet, you will be taken to the Uniswap website. The whole amount of ETH available is shown on the screen.

* To purchase any token, select LINK by choosing ‘Select a Token’ in this case. If you can’t locate the LINK token in the list, you can paste the contract address instead.

* Enter the quantity of ETH you want to exchange. The screen will reveal the LINK tokens that can be purchased using the entered ETH.  And then select ‘Swap’ button that can be seen easily.

* When prompted for confirmation, select ‘Confirm Swap.’

* A new screen emerges, this time displaying the transaction’s details. After you’ve double-checked everything, click ‘Approve.’

* Your transaction has now been completed, and you can see your updated ETH and LINK balances.

Why should you prefer DeFi?

After the creation of blockchain technology, access was restricted to a small group of people. Everyone in the globe has access to a limitless number of financial products and services thanks to Defi. As a result, an unbanked person can have access to all financial services without the need for permission from a central authority.

Because Defi does not use any middlemen, it has the potential to make certain products much more affordable. Defi allows investors to trade more effectively by buying or selling a piece of a high-value investment rather than the complete transaction.

The Defi data is accessible to the public, so you can check the Defi reserves, look for accurate loans, and track the platform’s transactions anytime you want.

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What Exactly Is Arbitrum?



Ethereum is a well-known platform for creating decentralized applications (DApps). However, due to a rapid increase of its users in recent years, the network has been pushed to its ultimate limits, causing transaction costs to skyrocket and widespread congestion.
Some believe that on-chain changes and improvements are the best approach to expand Ethereum, however, others are opting for second layer alternatives.

Although they differ widely in terms of appearance and purpose, one such option, known as Arbitrum, has begun to gain attention.

What Is Arbitrum?

It is one of the layer 2 solutions that enhances the capabilities of Ethereum smart contracts by increasing their speed and scalability while also providing extra privacy features.
The platform is meant to make it simple for developers to run unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions on a second layer and at the same time taking use of Ethereum’s superior layer 1 security.

It’s designed to address some of the current Ethereum-based smart contract’s problems, such as inefficiency and high execution costs, which have harmed the Ethereum experience for users and frequently make transactions costly.

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NFT Gas Prices: What Are They? Getting To Know Ethereum, Gas, And Gwei



What exactly is ETH Gas?

The Ethereum network uses the Gwei as a unit of gas. Miners need gas to process transactions, which is one of the main differences that seperates Ethereum from other cryptocurrencies such as Bitcoin.

“How much gas you’ll need depends on the size of the contract you’re aiming to complete and how quickly you want to complete it.” The price usually reduces if you’re patient enough to wait for a transaction to finish. Both NFT art makers and collectors benefit from understanding this idea.

If we want to have a look at the technical side, Ethereum’s native currency, ether (ETH), is used to pay gas fees. Gas costs are expressed in Gwei, which is an ETH denomination — one Gwei equals 0.000000001 ETH (10-9 ETH). Instead of claiming that your gas costs 0.000000001 Ether, you may say that it costs 1 Gwei.

Why is there Gas?

The gas in Ethereum is a crucial regulator that prohibits spamming the network. All Ethereum computations push the security measure to its limit. Gas limits, which are paid for with each computational execution, have the mission to ensure that bad individuals do not exploit unsorted amounts of processing power to become de-facto coders on the Ethereum network and corrupt the future they worked hard for creating.

Why Gas is so important for NFT arts and artists?

Gas has two sides to it. When gas costs are rising, it is difficult for uprising artists to generate, mint, and even purchase other works. Some artists try to include the cost of gas into their paintings (which indicates that they are ready to lower the cost of their art, to make their art easier to buy.) This creates a catch-22 because the art’s perceived “worth” is reduced when collectors are deciding whether or not to spend 25-57 percent of the overall purchase price on gas. Artists aiming to build a reputation for themselves face a difficult situation in this regard. On the other hand, artists might overcharge while selling their work (paying higher marketplace and gas costs) in order to get their work published before they have built a reputation for themselves to be able to charge that much.

Overwhelming and Absurd NFT Gas Cases

We’ve seen gas costs exceed the cost of a piece of art being created in some cases, leaving artist in a very difficult situation to put their work online. Actually, making it impossible for the artist.

Solutions for NFT Gas

Allow the NFT Artists to have more power when their work is minted. Many marketplaces only let artists to create something at the very moment they click mint. Artists should be able to choose how long they want to wait for network congestion to clear before publishing. This is already implemented in NFTGateway (As far as I know). The painting isn’t minted until it has been bought during a drop. The art might not appear in wallets instantly, the transaction might take 24 hours. While we haven’t experienced such a long wait, we have seen up to two-hour waits for costly drops expectations.

The User receives back any unused gas

Finally, it’s essential to emphasize that not all transactions use the total gas supply. This should be better stated, and we’ll need to undertake further studies to find out what proportion of gas is returned on average. However, you’re essentially accepting to a maximum amount of gas fees that you’ll pay to complete the deal.


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What is Play-To-Earn (Play2Earn) All About? Begginer’s Guide



The play-to-earn business model promotes the idea of an open economy by rewarding players who contribute to the metaverse’s value.

Play-To-Earn (Play2Earn) games are a type of gaming in which a platform allows players to earn any type of in-game property that can be transferred to the real world assets that has value like money.

Play-to-Earn Crypto Gaming: Begginer’s Guide

Video game business models have evolved to a whole new level as technology has become more widely accessible to the public. Before, people were able to play games only in certain gaming areas on arcade machines. With a bag full of quarters, gamers would compete for the highest score. But, as technology advanced, games were introduced to our smartphones, PCs, and gaming consoles such as the PS5, Xbox, and others.

What Is Play-to-Earn Gaming?

In the blockchain ecosystem, a new game paradigm known as play2earn is currently being seen around the world. It effectively allows participants to profit from their participation in games. By participating in the in-game ecosystem and earning assets for their contributions, players create value for other gamers and developers. Coins and accessories that have been tokenized on the blockchain are examples of digital assets. As a result, blockchain games and the play-to-earn business model support each other effectively.

Play to Earn Games

Axie Infinity is an excellent example of a play2earn game. Axies are charming animals that players buy, breed, and combat for rewards in this game. Each Axie is a non-fungible token (NFT), which means it’s a unique digital collectible. There is an entire economy within the game (There is a world known as Lunacia).

Users can use their in-game tokens, Smooth Love Potion (SLP), and Axie Infinity Shards (AXS) to buy land and breed Axies in Lunacia. In addition, these tokens are not just useful in the game, they are also useful in real life.

Play-to-earn games, such as Axie Infinity (AXS), are already assisting people all over the world (particularly those who live in countries affected by the current pandemic severely) earning a significant amount of money. People in the Philippines are making $1,500 to $2,000 per month playing Axie Infinity as a hobby, according to estimates. A good number of  people in Vietnam have also given up their full-time jobs as a result of these games, which pay well.

Lost Relics, Splinterlands, CryptoBlades, DogemonGo, and Sorare are some of the other NFT games.

In 2021, the NFT market will have topped $2.5 billion in revenues, and this figure is expected to rise rapidly as new NFT games hit the market. The rise of NFT is leading to a new era of revenue streams in the blockchain world, and it won’t be long before it overtakes every other major business.

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Disclaimer: ATHCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.