Cryptocurrencies were the first step and DeFi or Decentralized Finance was the next link in the chain of decentralization of the economy. They have even surpassed the market capitalizations of the main cryptocurrencies in the market.
Thanks to them and smart contracts, the usual intermediaries in loans or exchanges are eliminated. It is a new way of providing financing away from the traditional guidelines of the big banks.
But not everything is rosy, but since the ICO Boom in 2017 there have been many scammers looking for unsuspecting investors. Any blockchain could be a feasible project with just a White Paper, a website, and, of course, an ICO.
What are the opportunities?
DeFi came with the proposal to bring financial tools to everyone without major difficulties, in an open and decentralized way. Until then, everything has been fulfilled and today cryptocurrencies can be used more than for HODL (Hold On For Dear Life). Which brings new opportunities and increases their value.
The value of Bitcoin and Ethereum has flown in tandem with the DeFi boom.
In addition, they are an excellent opportunity to promote blockchain technology beyond its initial functions.
What are your risks?
This growing interest has also been the niche for multiple scams around this promising financial technology. Hackers have taken advantage of the vulnerabilities of smart contracts, blockchains, or libraries, dressing under the guise of being DeFi revolutionaries to catch the unwary.
But it is not only the risk of digital criminals but also that we are dealing with new experimental techniques and that they can fail. Remember that cryptocurrencies have been around for just over 10 years and are still under construction.
Best DeFi apps to make money:
If you are going to use DeFi for investment, the best applications are Compound, Nexo, and AAVE. To use it, you only have to register on its page, make a deposit in cryptocurrencies and you can immediately use them. They are easy to manipulate and the risks of loss are incredibly low, but not non-existent. So, keep it present.
If, on the other hand, you decide to use the betting method, one of the safest platforms is Augur. Contrary to what you may think, it is very easy to use, the profit is obtained through commissions and they can be very large or small. Other applications that have gained positioning are Helena and Gnosis.
If you want to use the DEX method, then the best application for this type of method is PrimeXBT, Bisq, and Changelly. They are the most popular within DeFi because they not only allow the exchange of different types of cryptocurrencies but also other types of benefits that can be generated without many complications.
On the other hand, if you want to use a slightly more traditional platform, then you should use DAO, it is one of the first existing within DeFi and works through smart contracts to increase the value of the cryptocurrency.
Is there security when investing in DeFi?
Although participating in any of these platforms to earn money is simple, there are a lot of risks, so before venturing into the world of cryptocurrencies, we recommend that you inform yourself as much as you can.
Now, if you have basic knowledge and just needed to know what method to use to earn money through them, then go ahead and good luck. Always taking into account that the risk exists.
Earning money through various methods on the platforms that are within DeFi is possible, fortunately as you could see, there are different methods that you can select so that you can enter the world of investments, and cryptocurrencies and start having more income.
However, you should keep in mind that there are many risks, whether or not you know investments and cryptocurrencies. However, it also has many benefits that can ensure and multiply income. Another thing that must be taken into account is that profits are not generated overnight and that you have to be patient to see profits.