Welcome to the 4th in this 8-part Getting started in DeFi series. In the last lesson we covered what needs to be thought about when choosing a DeFi platform.
The getting-started-in-defi-part-4-basic-stepsfull series is as follows:
Introduction to DeFi: This lesson covers what DeFi is, why it's important, and how it's different from traditional finance.
Understanding DeFi risks: This covers the risks associated with DeFi, such as smart contract security, liquidity, and volatility.
Choosing a DeFi platform: This covers the different DeFi platforms available, and how to compare and choose the right one for your needs.
Wallets, Buying and More: This lesson covers the basic steps for getting started with DeFi, including setting up a wallet, buying cryptocurrency, and interacting with DeFi protocols.
DeFi projects and protocols: This lesson introduces some of the most popular DeFi projects and protocols, such as MakerDAO, Compound, and Uniswap, and explains how they work.
Advanced DeFi concepts: This lesson covers more advanced DeFi concepts, such as yield farming, liquidity mining, and composability.
DeFi best practices: This lesson covers best practices for using DeFi, including how to manage risk, protect your assets, and stay up to date with the latest developments in the DeFi space.
Conclusion: This lesson summarises the key takeaways from the course and provides resources for further learning and exploration.
Decentralized finance (DeFi) has become increasingly popular over the past few years, offering a new way for people to manage their financial assets and interact with financial markets. If you're new to DeFi, it can be overwhelming to know where to start. This article will provide a basic overview of the steps you need to take to get started with DeFi, including setting up a wallet, buying cryptocurrency, and interacting with DeFi protocols.
To get started with DeFi, the first thing you need is a wallet that supports cryptocurrency. There are many different wallets available, each with its own unique features and security measures. Some popular options include MetaMask, MyEtherWallet, and Coinbase Wallet.
Once you have a wallet, you'll need to buy some cryptocurrency to use on the DeFi platforms. You can buy cryptocurrency on a variety of exchanges, such as Coinbase, Binance, and Kraken. Be sure to do your research and compare different exchanges to find the one that best meets your needs.
Once you have your wallet and some cryptocurrency, you're ready to start interacting with DeFi protocols. DeFi protocols are decentralized applications (dApps) that are built on top of blockchain technology and allow users to access financial services in a trustless and transparent way. Some popular DeFi protocols include MakerDAO, Compound, and Uniswap.
To use a DeFi protocol, you'll need to connect your wallet to the protocol. This process will vary depending on the specific protocol you're using, but generally involves entering your wallet address and approving the connection. Once you're connected, you can start using the protocol's features, such as lending, borrowing, or trading.
In addition to using DeFi protocols, you may also want to explore decentralized exchanges (DEXs), which are platforms that allow users to trade cryptocurrency in a decentralized manner. DEXs are often integrated with DeFi protocols, allowing users to easily access financial services while maintaining control over their assets.
Here's a video from Whiteboard Crypto on the different types of DeFi wallets out there
Getting started with DeFi can seem daunting at first, but with a little research and patience, you can quickly become familiar with the basics and start taking advantage of the many benefits of decentralized finance. Whether you're interested in earning passive income through lending, trading cryptocurrency, or accessing new financial products, DeFi has something to offer for everyone.