DeFi, sounds nice and catchy. Decentralized Finance. There. Now you know what DeFi is. Bye! (Reads as “Di-fay“)
For the ones who’d like to learn more about what DeFi is (and Yield-Farming), grab your beverage, and keep reading further.
If you are someone who is active in the crypto community, or even not that active, you have probably heard of DeFi.
DeFi can be a coin or a token based on Ethereum (ERC20), on the TRON network (TRC20), or any other blockchain that supports the creation of custom tokens, or as they professionally are called, “Contracts”.
Those contracts allow people to write their own code and deploy it on the blockchain of their preference. This way, we avoid middlemen. We avoid paying big percentages on transactions and other actions. All the tokens created are not equal. Every developer has a different vision, a different problem to solve.
In the last few months, a hype around DeFi started.
DeFi/Yield-Farming is the next big thing in cryptocurrencies.
The biggest trend currently around DeFi is “yield-farming“. Yeah, baby.
Yield-farming means that you give your money to a bank (in this case it’s a contract that exists to execute your investing plan) and in return, you get interested on top of your investment. This sounds freaking amazing, doesn’t it?
Let us know if you’d like to read more about the risks of Yield-Farming in another post and we’ll make sure your jaw drops.
Here is an example of how you probably could make money.
Let’s assume a coin/token launches and it gets distributed through an ICO (Initial Coin Offering), an Airdrop, or anyway it gets distributed.
You buy that token from an exchange. For example, Uniswap.
Those specific exchanges are made to be Decentralized, so they fall under the term “DeFi” as well. In order to trade on those DEX-es (Decentralized Exchanges), you need a plugin, such as Metamask. Oh, you might want to learn how to use PancakeSwap with MetaMask?
Now that you managed to login on to the exchange with your Metamask, it’s time to pick a token that promises you 1000% returns right after you buy it! yayyyyy!!11!
This is a little bit tricky, but always make sure you take advice from twitter people, because they want you to become rich overnight, but, right after they dump on you. (sell their tokens to you for at least x2 of the price they paid for it, initially.)
The opportunities in the crypto space have become countless, again.
New blood entering the markets, inexperienced traders (investors, as they call themselves) going after anything that gets promoted on Twitter, Facebook, and other social media platforms.
You are greedy. I am greedy, we all are greedy. For that reason, we FOMO (Fear Of Missing Out) tokens with market buy orders.
Imagine everyone trying to get rich overnight. What do they do?
They simply FOMO any new tokens that get listed on X and Y exchange and expect there’s going to be another fool of 10,000 fools who will do the same. It’s just that simple. Sounds familiar?
A Ponzi you say?
Are those tokens worth the price investors are paying? Who knows? Probably not, but they tend to make you money if you’re fast and smart enough to know when to pull out (your investment). No pun intended.
Yield-Farming. tl;dr. version because it’s time to get back to farming assets.
You put your money in a pool with other people. While more people add funds to that pool the price of your token rises. The more people invest, the more monies you cheeky investors get. Simple as that.
Ok, this was a really boring post to write, and I can imagine reading it too. We have to make posts so we can pay for the server and domain.
Here’s one more squirrel meme, because squirrel memes rock.
(REMEMBER, WE DO NOT MAKE ANY MONEY IF YOU BUY, SELL, TRADE COINS, TOKENS, OR WHATEVER YOU CALL THEM. WE MAKE MONEY FROM ADS AND WE AREN’T RESPONSIBLE FOR YOUR ACTIONS, even after we recommended you to grab that beverage. Drink responsibly.)
Thanks for reading this post. We will try to make more in the near future so we teach you in funny and entertaining ways.