Ethereum is mooning, It's once again on the move the volume and search trends for Eth are starting to go up.
One area of crypto that's the most affected by the ethereum movements
is decentralized finance over the summer of 2020. We saw projects absolutely pumped based on their associations with ethereum then in early 2021 we saw the same thing
a renaissance there's been a lull recently in the world of DEFI though and it looks now like it could be bouncing back.
We're going to be taking a look at some of the projects that could be poised to make you the most money
in a DEFI resurgence.
Let's talk about decentralized finance you may hear this crypto buzzword DEFI quite often and it can be a little confusing because cryptocurrency is financed to some extent its money.
Am i right??
Well decentralized finance is the
intersection of traditional and digital finance.
The idea of DEFI is that anything you
can do with a bank credit union or
lender should be able to be done digitally in a decentralized manner,
meaning there's no need for a third
party we've been so used to the way
things have always been done before
that we believe this lie that it must be done that way.
We don't need credit card processors we don't need banks to keep our money safe we don't need third parties to hold our money hostage for us
through crypto and decentralization.
We as individuals are empowered to do any and everything that traditional finance and banks do for us
It is time that people wake up to this fact aside from the removal of third partiesBall up in our business
DEFI also allows us more opportunities to make money specifically through crypto investing
lending staking and yield farming.
These are ways where individuals can make big returns on their own money instead of big institutions making the big money.
BANK V/S DEFI WORKING
Let's talk about the way a bank works
with interest
for example
When you put your money into a savings account you earn and
settle down because it's a lot a whole point zero one percent
so earn one/ one hundredth of one percent on your money.
Wow but here's the thing that money that you're earning point zero one percent on the banks are stealing from your account To lend us somewhere else or they're charging them anywhere from three to thirty six percent
It's highway robbery we put up with it because It's a bank
Now imagine if you were able to make
that 36 percent on your own money instead of the bank using your money and robbing you
It's a pretty smart business model for them but one that we definitely should bust up because I don't know about you but I hate being robbed
So the upside to device should be
extremely apparent the thing is
DEFI pumps tend to happen in waves and we've been at the bottom of the most recent wave for a while but things are starting to ramp up again
you can feel the water flowing back in from the beach getting ready to create a totally surfable gigantic wave hang 10.
The only question is
How are we going to take advantage of it and which project should we be looking at??
Well first the easiest way to find
great device projects is on www.coinmarketcap.com They actually have a really sweet sorted list of device projects on their website, Here all the work is done for you so
Let's start going down this list and
looking at the prospects of each
1. UNISWAP
We have uniswap this is considered
to be the number one overall crypto divide project this is the top decentralized exchange in the
world and has a ton of upside there are also talks that uni-swap like
one inch before it could branch out to other chains like binance smart chain that happens watch out the fact is I believe uniswap is still a very
profitable project has more room to go the top centralized exchange finance has the number one exchange coin. it's number three overall currently uniswap in my opinion has more current potential and upside.
2. CHAINLINK
We have chainlink coming at
number 10 overall in the number two DEFI project chain link is an oracle project and it has partnerships with a ton of projects and chains.
I still believe chain link has the potential to find
itself in the number three overall
crypto by the end of this year but it's been stagnant lately like ethereum but it is getting ready to break out again.
3. Wrraped bitcoin
Honestly no reason to invest in this one it's basically bitcoin on the ethereum network and you might as well just invest in bitcoin
itself.
4. Terra (Lunna)
We have an interesting one terra with the ticker symbol luna really liked tara and it was one of our picks for the month of march it blasted off returning 200 gains so here's the thing. While Luna
crushed it in march got a little toppy at least in the short use term LUNA is what i'm looking to add to
my portfolio after a further correction great
potential but i wouldn't fomo in at the moment.
5. AAVE
At one time was the top project but has dropped somewhat had crazy 68000 returns for the last year or so but it's had a major correction dropping from over 500 dollars per coin all the way to the 350ish dollar range back at a little over 400 i believe ave is primed to move closer to the 1000 mark during this next DEFI resurgence.