I will take the bet that you have come across DeFi across your social media feeds or on your Google search and you are wondering what it is since you are a beginner in this space. I was like you and you need to read on to get the full concept as I described it in this write-up.

When Vitalik Buterin, the founder of Ethereum introduced smart contracts to the concept of Bitcoin, Ethereum was birthed and innovation in cryptocurrency was never the same again, it has given birth to different trends within the cryptocurrency world, and one of them is Decentralized Finance (DeFi).

The main concept of Ethereum is to let a contract run on the blockchain by itself, it is termed a Smart contract. Many innovators agreed to this concept and started building amazing solutions on Ethereum, we have seen many other blockchain networks rise up with similar concepts of smart contracts.

Andre Cronje decided to create DeFi(Decentralized Finance) in order to provide a new type of financial system that operates without traditional banks or brokers on the Ethereum network which has evolved over time.

Ng Gift

DeFi is built on the Ethereum blockchain and allows you to make transactions, borrow money, and do other financial activities directly with each other, without a middleman. 

This system is designed to be more transparent, cost-effective, and accessible to you than traditional finance. The goal of DeFi is to give you more control over your own money and create a more inclusive financial system.

In crypto, steps to create a DeFi account for yourself?

DeFi can be done via your wallet browser on your mobile devices or on your browser wallet extension on your laptop or desktop. for the purpose of this write-up, I will work you through the How-Tos of DeFi on your laptop browser:

1. You must install a wallet on your browser extension, such as Metamask, trust wallet, binance Smart chain, kepler, etc. These are all web3-enabled browser extension wallets. Some of these also have a mobile wallet.

2. In my instance, I am using metamask as an example. but after installing your choice of extension wallet, this wallet will be used to store your ERC-20 tokens for the Ethereum network, BEP20 tokens for Binance Smartchain, TRC20 tokens for Tron Network, and many other networks like that. To create your wallet, click on the metamask icon in your browser and follow the prompts to set up your account.

3. Add funds to your MetaMask wallet: Once you have created your wallet, you must add funds. You can do this by purchasing Ethereum( if you are interacting with Ethereum Network )from a cryptocurrency exchange or P2P platform and then transferring them to your MetaMask wallet.

4. Connect to a DeFi platform: After adding funds to your MetaMask wallet, you can connect to a DeFi platform. To do this, navigate to the DeFi platform’s website and click on the “Connect Wallet” button. This will prompt you to select your wallet and connect it to the platform.

5. Start using the DeFi platform: Once you have connected your wallet to the DeFi platform, you can start using its services. Each platform is different, so you will need to follow the platform’s instructions to use its features.

It’s important to note that DeFi platforms can be complex and risky. Before using any DeFi platform, make sure you understand the risks and do your research to ensure that the platform is reputable and secure.

Ng Gift

Check out this blog: using Coinmarketcap to fact-check crypto before you buy it.