What is DeFi?
DeFi is an abbreviation for decentralized finance which is one of the categories of dapps (decentralized applications). DeFi usually consists of dapps related to cryptocurrency lending, trading, stablecoins etc.
According to the data provided by State of the DApps, DeFi is one of the most active dapp categories. And, in terms of transaction volume, DeFi apps are leading decentralized applications in the ecosystem along with gambling dapps.
DeFi applications involve smart contracts which allow people to use the apps without trusting third parties. Smart contracts can be verified by the users and are usually audited by different developers before going live.
Anyone around the world, regardless of his or her residence, citizenship etc. can use DeFi apps and access to various financial services.
In short, DeFi is a new growing space in the crypto which revolutionizes the traditional finance with decentralized, transparent, efficient and open financial services.
The best DeFi apps – Decentralized finance applications
DeFi applications might be seen as complex at first, though they are at backend, it is usually very easy to use DeFi apps thanks to user-friendly interfaces and straightforward guides.
Cryptocurrency lending apps and decentralized exchanges are currently the most popular DeFi apps. Users can lend and borrow cryptocurrencies and enjoy margin trading while they are in control of their funds.
How to use DeFi apps?
Choosing a cryptocurrency wallet to interact with dapps
To start using DeFi apps, you need a secure wallet that allows you to interact with dapps on your browser or mobile device.
If you will use DeFi apps with large amount of funds in your wallet, it better be a hardware wallet. Ledger hardware wallets isolate private keys in the secure chip, so there will be no possibility of exposure of private keys to the internet.
By using dapps with a hardware wallet like Ledger, you can be sure about the security of your cryptocurrencies anytime.
Other cryptocurrency wallets like MetaMask and Coinbase Wallet are also secure enough but such ”software wallets” are usually not recommended for storing and transacting large amount of coins.
Before getting a cryptocurrency wallet to interact with DeFi apps and other dapps, you can check out the guides below:
Which DeFi app to use?
If you are new to DeFi and don’t know how to get started, there is a great dapp for beginners who want to get involved in DeFi which is called DeFiZap.
DeFiZap basically allows its users to use various DeFi products in a very simple way. It deploys your Ethereum or ERC-20 token across multiple DeFi protocols with just one transaction.
There are many ”Zaps” on the platform which you can choose and ”Zap In” based on your investment goals. If you are not sure about which one to choose, you can take a quick survey on DeFiZap to see which one might be a better choice for you.