Hi everyone,
This time I am creating a beginner's guide on how to use a DefiApp. The way, I am setting this up, I believe, will allow you to buy any crypto, use any wallet, and the most important, get exposed to the Defi ecosystem.
First of all, you need to buy your Cryptocurrency!
Probably you have heard about Bitcoin, a little bit about Ethereum, and you have probably read about Binance Coin somewhere.
There are lots of Defi dapps in different blockchains, but we will focus on Binance Coin for the sake of simplicity. Ethereum would be the main choice; however, the transaction fees are very high, and no beginner would want to spend dozens of dollars simply moving their crypto around.
Words used in this guide:
Defi
DeFi is short for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
https://www.coindesk.com/what-is-defi
Binance
Binance is a cryptocurrency exchange
BNB
Binance was created as a utility token for discounted trading fees in 2017. But since then, its uses have expanded to numerous applications on a wide number of platforms. It is used to pay for transaction fees on Binance.com, Binance DEX, and Binance Chain.
https://www.investopedia.com/terms/b/binance-coin-bnb.asp
Wallet
Crypto wallets store your private keys, keeping your crypto safe and accessible. They also allow you to send, receive, and spend cryptocurrencies like Bitcoin and Ethereum.
https://www.coinbase.com/learn/crypto-basics/what-is-a-crypto-wallet
How to buy BNB (Binance coin)
So focusing on Binance.
Probably the best way to buy BNB (Binance coin, which we will be used to pay the transactions fees and to trade it for other cryptocurrencies that we want to "invest" in Defi Dapps).
My advice is to go to
and create a new account ( if you use my URL above, you will get 10% back on fees).
On Binance, you will buy BNB. How to buy BNB on Binance.
After buying your BNB ( you can use a bank transfer, credit card, or even trade it with another coin), we will hold it in finance for a few minutes while we set up a wallet.
How to set up your first wallet.
The easiest wallet and probably the most used around is Metamask.
Metamask offers this amazing guide on how to set up their wallet:
After setting up your wallet, you will notice that it comes ready to use in the ethereum network. The Defi dapps we are using are on the BSC (Binance chain Network). We need to tell our wallet which network we want to use, so we need to add the BSC to metamask.
For this, you can use this Binance guide:
How to put BNB on my metamask.
As we now have a wallet connected with the BSC, moving our BNB from Binance to our wallet is time.
For the next step, remember to get your address from metamask:
So we go back to Binance, and you can follow this easy guide on how to withdrawal crypto from Binance,
If you could get this far, you would now have BNB on your metamask, and you are ready to explore de Defi's world!
How to use your first defi dapp Pancakeswap
Pancakeswap dominates the defi on BSC, and it is also the place I recommend you start your journey!.
First, you go to :
(always check if the URL is the real one, I recommend you to bookmark it so that you don't get tricked)
What we are going to do on pancakeswap consists of 3 simple steps:
- Connect your metamask to pancakeswap
- Swap some BNB for CAKE (pancakeswap token)
- Stake the CAKE in a pool to get some yield
Connect your metamask to pancakeswap
On the top right corner, you will click connect
And on the popup, you will select Metamask
After selecting metamask, a small Metamask popup will require you to sign and allow pancakeswap and your wallet to interact.
Swap some BNB for CAKE
On the menu, you will select Exchange under the trade tab
On the exchange page, you will select BNB as the "from" token and Cake as the "To" token, which will allow you to swap from BNB to cake.
Don't forget to leave a few BNB on your wallet to pays the necessary transaction fees.
First, you will need to approve this contract, which will basically permit this contract to be used by your wallet. After that, press swap and confirm on the metamask popup, and you will now have CAKE available on your wallet.
Stake the CAKE in a pool to get some yield
We have finally arrived at the final step! We will put our cake, generating consistent yield for us.
For this last step, I recommend you follow the guide from pancakeswap as they have already done a great job explaining how to do this step by step!
https://docs.pancakeswap.finance/products/syrup-pool/syrup-pool-guide
And that's it you have converted your money in crypto and put it to generate yield for you!
I hope this tutorial helps you unleash the potential of defi!
