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HOW TO DEFI. THE BEGINNER’S GUIDE

By Bolide | Bolide Finance Blog | 12 Jul 2022


You may not know it, but there’s been a revolution underway in the global financial system since 2015. 

Right now, there’s a new kid in town, and his name is DeFi. And traditional financial institutions are looking over their shoulders nervously.

Because how we control our funds, make financial transactions, and earn interest on our investments have changed massively in the last few years.  

But, what exactly is DeFi, and how does it work?

DeFi in a nutshell

DeFi (decentralized finance ) is the new and emerging world of banking and financial services based on peer-to-peer payments through blockchain technology, sidestepping traditional financial middlemen such as banks or brokers.

DeFi allows investors to “become the bank” by giving them opportunities to lend money peer-to-peer and earn higher yields than traditional banks can give them. Investors can also send money quickly anywhere around the world and can access their funds via digital wallets without paying traditional banking fees.

Using blockchain technology and smart contracts, Blockchain is a kind of ledger technology that tracks all transactions on a financial platform.

DeFi disciples argue that this new financial technology will disrupt traditional banking wiping out the middleman and replacing them with networks of peers.

Risks For Investors

Regulatory Risk

At the moment, DeFi protocols are not regulated by governments. Everybody expects this situation to change, but it might be challenging to predict how any new government regulations could affect your DeFi investments.

Theft 

Like anywhere there is money to be made, the crypto space has its fair share of scammers, and some people have lost money, especially given the vulnerabilities of coding in some dApps. 

Cost 

With smart contracts comes something called a gas fee. Gas fees are payments made by users to pay for the computing energy needed to process and validate transactions on the Ethereum blockchain. And these costs can mount up, making it difficult for investors with modest resources.

The Benefits of DeFi

DeFi is disrupting the traditional banking sector big time and is already conducting a range of financial transactions. Payments, trading securities, and lending and borrowing are already happening with DeFi. Most importantly for many investors, DEXs are giving back control to the little guy, facilitating peer-to-peer financial transactions while letting users keep control of their money, taking away the traditional powerbase held by huge financial institutions.

Transparent transactions

Every transaction on the Ethereum blockchain, which makes up more than 90 percent of all DeFi traffic, is broadcast to and verified by other users on the network, meaning any user can view network activity. 

Stablecoins

While cryptocurrencies can be volatile, stablecoin values are pegged against hard currencies, tying them to non-crypto currencies, like the U.S. dollar, meaning it’s easier to protect your assets against fluctuating prices. 

Rocket-fuelled yields

Probably the biggest benefit of DeFi is the lucrative yields investors enjoy. Described as the “rocket fuel” of crypto, DeFi allows investors to lend their crypto coins and earn big yields in return. 

Staking and yield farming allow investors to help support a coin’s ecosystem and earn income by validating transactions and putting coins to work to earn passive income.

Even the lowest-risk yield farms can easily return interest rates several times those of savings accounts at banks, which is something every investor needs to think about with massive double-digit inflation part of our new reality. 

DeFi investment opportunities

The easiest and possibly one of the most cost-effective and profitable ways to build a crypto portfolio is through yield aggregators. 

Yield aggregators give you a way into portfolio investing and allow you to avoid many of the problems we saw above.

The benefits of yield aggregators and farming are pretty straightforward. If you already hold a cryptocurrency long-term, you may as well look to increase the return you can get on those holdings, and staking provides a low-risk way to generate extra returns. 

With companies such as Bolide.fi, you can start with any amount and invest in a vast range of staking and farming options while choosing a risk strategy that best suits your risk appetite. Even better, there’s no lock-up period, and you can get APYs of up to 30%!

Here are some of the benefits of investing with Bolide:

– A one-stop investment product, with access to leading protocols

– Automated, stablecoin investing producing maximum yields

– Low risk, market-leading yields of up to 30% APY

– Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming 

– Start investing with any amount

– Hands-off, passive automated investments using your stablecoins 

– No lock-up period access your funds and profits instantly

– No withdrawal limitations


Starting your yield farming and staking journey is easy with platforms like Bolide. Simply visit Bolide.fi, connect your crypto wallet, deposit either $USDT / $USDC / $DAI or $BUSD, and you’re good to go.

Start earning interest at the speed of light with Bolide today! 

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Bolide Finance Blog
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