Want to get into cryptocurrency trading but don’t know where to start? A decentralized exchange (or Defi) might be the place to start. In cryptocurrency exchange, instead of trading on a centralized peer-to-peer marketplace, you trade directly with other traders on a decentralized exchange. So, what’s the difference?
What is Crypto?
Cryptocurrency is quickly gaining popularity. Bitcoin has been the most talked about, but Ethereum, Litecoin, Monero, and Ripple are some of the others making waves in the investing world. So, what is crypto? Cryptocurrency is a decentralized digital currency that operates independently of a central bank. It uses encryption to regulate the generation of coins and verify the transfer of funds, making them extremely secure.
What is Defi?
Decentralized Finance (Defi) is changing the world of banking for the better by bringing financial power back to people where it belongs. The decentralized nature of crypto-currency means transactions are handled by a peer-to-peer network of computers instead of a centralized third party, such as a bank or payment processor. This means there are no delays and no hidden fees because you can settle your crypto-denominated transactions directly between other peers on the network.
But what exactly is DeFi? Well, it’s a lot like regular finance, only with a decentralized twist. Instead of going to a traditional bank, DeFi allows you to store your wealth in any of its many decentralized apps (DApps). There are certain blockchain development companies that provide a comprehensive ecosystem for various financial activities, and these DeFi Developers can help businesses tokenize their assets and build decentralized lending platforms. Some of these DApps offer cryptocurrency wallets, like smart contracts, which are often developed by specialized companies providing DeFi smart contract development services. Others offer lending services, like margin trading, facilitated by DeFi protocol development companies.
How does Defi work?
Users retain custody of their funds because decentralized exchanges are built on blockchain networks that support smart contracts, so each trade is subject to a transaction fee in addition to the trading fee. To put it another way, traders use Defi to interact with smart contracts running on the blockchain.
Defi aggregators, automated market makers, and order books are the three main types of decentralized exchanges. Through their smart contracts, all of them allow users to trade directly with each other. In the early days of decentralized exchanges, order books were similar to those used by central exchanges.
Buying Crypto on Defi
Investing in crypto can be tricky, and the soaring price of Bitcoin and other digital currencies has made it difficult even for the most seasoned of investors. Luckily, there are now some reputable cryptocurrency exchanges you can use to buy cryptocurrencies. One of these exchanges is Defi. The Defi exchange offers a variety of cryptocurrencies for purchase, including a Bitshares token that you can use to purchase other cryptos.
The first step is to get MetaMask or Trust Wallet
Defi Coin runs on the Binance Smart Chain, which means you’ll need a wallet that really can connect to it. MetaMask (a browser extension) and Trust Wallet are the best choices in this regard (mobile app).
In the second step, you’ll need to transfer BNB to your wallet
Defi Coin can only be purchased with BNB tokens. As a result, you will have to transfer BNB tokens to the wallet of your choice. Buying BNB directly on MetaMask or Trust Wallet is an option that you should be aware of.
Connecting to Defi Swap is the third and final step.
Choose MetaMask or WalletConnect from the ‘Connect Wallet’ button (for Trust Wallet). You’ll receive a pop-up notification on the device where you’ve installed your wallet. Make sure you’ve got permission to trade on the Defi Swap market.
Buy Defi Coin on the 4th step
To begin, DEFC will be selected as the receiving currency, and BNB as the payment method for your swap. Specify how many BNB tokens you want to trade in exchange for Defi Coin, and then hit the confirm trade button.
