When planning to get into the crypto and blockchain world, it can feel like you are jumping into a whole complex set of new and uncertain technologies. The blockchain technology is indeed advanced, but the world is moving rather fast, and you should not be left behind. The good thing about blockchain technology is that it has numerous applications today. It is just a matter of time before everyone starts using the coins and the technology.
To simplify the entire blockchain technology and cryptocurrencies applications, you should consider using decentralized finance (DeFi) platforms. DeFi is an umbrella term denoting different applications as well as projects in the blockchain niche. DeFi is meant to disrupt the finance industry and is inspired by blockchain-related technologies, especially smart contracts. Applications on DeFi platforms are peer-to-peer, implying that you do not require permission to borrow, trade financial assets, or stake your coins.
Before you can get started, it is important to appreciate that there are very many DeFi platforms today, and selecting the preferred one can be challenging. So, here are some useful tips to guide you:
Should Have a Wide Range of DeFi Services
The main reason why DeFi platforms have become so popular is that they offer a wide range of services under the same roof. This means that you do not need to deal with multiple organizations to buy crypto coins and then stake them. All are available from the same platform. Therefore, you should look for the DeFi platform that offers a wide range of blockchain services. Some items to check in a DeFi include:
● Crypto staking: If you target raking in some passive income, go for the DeFi platform that offers crypto staking. This is a method of locking your crypto coins so that they can be used to secure proof of stake (POS) blockchain networks. In return, you are rewarded with part of the fees paid by people using the network.
● Crypto Lending: This service involves taking loans from DeFi platforms instead of banks. The loans have low-interest rates and are issued with no background checks. All you need is to commit your coins as collateral, agree to repayment particulars, and receive the cash you want immediately.
● Allows Buying and Sending Cryptos: The process of buying and sending cryptocurrencies, especially in the exchanges, can be challenging. For example, some exchanges only support crypto to crypto transactions, implying that people with fiat currencies have to start elsewhere or get locked out. Therefore, pick a platform that allows people to use both fiat and crypto coins.
It is not uncommon to hear a DeFi platform that has been hacked and millions of coins siphoned by attackers. To avoid this or at least reduce the risk, it is paramount to look for the DeFi platform that is committed to offering maximum security to clients’
coins. Therefore, check the platform’s mission on their website to determine their commitment to customer value. Other features that indicate the platform is secure include:
● Well-designed website.
● Regular security updates.
● Use of cold wallets for client’s coins.
Easy to Use
If a DeFi platform is complicated, there is a risk of doing things wrong or being unable to take advantage of emerging opportunities. For example, if some news about to hit the headlines is expected to shoot the price of your selected coin, the DeFi platform should make it easy for you to buy and start trading them. An easy-to-use DeFi platform should have a good user interface, rich features, and professional support.
The field of decentralized finance is only getting started, and it is expected to continue growing as more people embrace blockchain technology. Therefore, use the tips we have listed above to identify the best DeFi platform. One such platform that ticks right in all the above attributes is hi.com. Visit them today to learn more about DeFi and start using the services.