How to make it in DeFi (pt.1) - Starting out in DeFi


This short article is the start of a series I will be writing about how to make it in DeFi or Decentralised Finance. The purpose of these articles is to get you from knowing nothing about DeFi to having a pretty good grasp on the sector and what is possible.


I know what you’re thinking, why get out of Coinbase and Binance where everything is safe and well-known? If you’re happy with buying or selling and trading tokens, this may be enough. But crypto is evolving into something so much bigger now, so I want to try and expand your knowledge just a little.


Why not explore all the golden opportunities that are out there? But, actually why care about DeFi at all?


Let me present some of the opportunities in DeFi (maybe you don't understand everything now, but hopefully over the course of these articles you will):


  1. Use any token or coin as collateral to borrow money.

  2. Stake your tokens or tokens (single-side staking) to earn APY, eg. stablecoins to achieve between 20% and 120% APY.

  3. Yield farm your tokens (two or several tokens in a Liquidity Pool (LP)-pair) to earn APY.

  4. Lend your tokens or coins to earn money.

  5. Buy NFT’s (which is way more than a jpeg), and you can stake your NFT to earn a passive income.

  6. Send money to anyone in your preferred currency without using a CEX (centralized exchange) as a middleman.

  7. Buy tokens at a lower price than the market price (liquidity protocols).

  8. Use stablecoins to buy stocks and commodities.

  9. Use self-repaying loans.

  10. Buy real estate (digital and physical).

I could probably continue this list forever with all the possibilities, but for now, let's