Getting started with blockchain and cryptocurrencies
The banking services are some of the most important for people who want to grow at different levels, from careers to self-employment. You use the banking system to send money, get a loan, and pay for goods & services via debit cards. However, a closer look at the banking system reveals it has so many issues that people have been yearning to walk away from if only they had a reliable alternative.
If you want to send some money to a friend or relative in a different country, the process is long and complex. You need the right swift code, account number, and deep scrutiny through know-your-customer (KYC) procedures. By the time the receiver gets the money, it might be hours, days, or weeks later, and the details of both parties will be accessible to so many people in the entire chain. Now, you have an alternative that does not involve going into the bank: working with blockchains and decentralized finance (DeFi) platforms.
Keep reading as we delve deeper into cryptos and DeFi to demonstrate how they work and help you get started.
Blockchain and DeFi: How do they work?
Blockchains are decentralized public ledgers that are designed to record and store transaction information in participating computers. As decentralized networks, it means that they do not have controllers, such as banks or governments, and all the financial transactions are processed by computers/ nodes on their systems. The main advantage of blockchain technology is that it allows people to operate on a peer-to-peer basis.
Decentralized finance (DeFi) is based on blockchain networks. They are run as financial platform layers created on top of blockchains with the intention of offering banking services in a decentralized manner. This means that instead of going to a bank to take a loan or other service, you simply log in to a DeFi platform.
DeFi operates using smart contracts, which helps to automate the process of accessing different services. The smart contracts make it easy for anyone who meets specific conditions, such as having some crypto coins, to be able to access the targeted service. They also process transactions fast and you can count on them to access the offered banking services no matter the time of the day or night. You can even use DeFi on weekends and public holidays.
How to get started with DeFi
The primary goal of DeFi platforms is to provide people with alternatives they can rely on to get all the financial services they want. The use of DeFi platforms intensified in 2020 when people knocked the doors of banks, but most of them were reluctant to offer their services or their officers were not available. So, here is a demonstration of how to get started with DeFi and blockchain.
- Identify a good crypto wallet: To be able to use most services offered by DeFi platforms, you need to start by acquiring a good crypto wallet. This will help you to store the cryptocurrencies for paying different services on blockchain and DeFi platforms.
- Select the preferred crypto coins and buy them: These are digital currencies, and you need them to be able to work with blockchains. Good examples of crypto coins include Ethereum (ETH) and Bitcoin (BTC).
- Work with an appropriate DeFi platform: The DeFi platform you select determines the nature of services offered. The idea is to select the platform that offers the most banking services. For example, does the platform allow staking, offer crypto loans, and support yield farming? One of the best platforms that you should consider is hi.com.
In this post, we have demonstrated that DeFi platforms and blockchain technology are redefining banking services. They are making it easier for you to get most banking services more conveniently. Make sure to follow the three steps we have highlighted in this post to get started with DeFi.
