Getting Started With Defi Starting At The Bitcoin ATM
Posted on: 28 July 2021
You might have heard a lot about Defi. Now, maybe you want to get started but are not sure where to go. First, you will need some Bitcoin, which can be obtained from a special ATM. There is a lot more to getting the Bitcoin and starting with Defi than just that, though:
Get a Wallet
Before going to the Bitcoin ATM, you need a wallet. Today, there are several types of cryptocurrency wallets. These are either software or hardware wallets. A hardware wallet is the most secure, but you can start with something like a Coinbase wallet to get started. Make sure the wallet you use is reputable and secure. Later, you can buy a hardware wallet for the safer storage of your cryptocurrencies and Defi tokens.
Go to a Bitcoin ATM
The Bitcoin ATM is the most important step in the process. This is where you will be able to get the cryptocurrency and send it to your wallet. Most modern Bitcoin ATMs will have several cryptocurrencies that you can buy or sell. It is usually better to start with Bitcoin because it can be used on almost any exchange.
Buy Your Crypto
If stable coins like USDC are available at the ATM, these are pegged to the dollar and hold value. Most Defi projects are smart contracts on the Ethereum platform, so you might want to buy Ethereum, but network fees can be costly. Therefore, you might want to choose alternatives and side-chain projects because Ethereum fees can be costly. Some of these alternatives include Polkadot, Skale network, Polygon, ChainLink, and Cardano once the smart contracts go live in August (2021).
Choose a Defi Platform
After getting the cryptocurrencies you want to use, it is time to find a Defi platform. Some of the biggest platforms include Aave, Maker, and Compound. There are also swap Defi platforms where you can trade, stake (invest) and borrow against your assets. These swapping protocols include Uniswap, 1inch, Shapeshift, and Synthetix Network Token. 1inch is an interesting project because a former supercar engineer is one of the co-founders.
Invest or Borrow
You connect your wallet on all of these platforms and then select your options from a user-friendly interface. You will be able to deposit coins to earn interest, trade for other assets, or borrow against the assets you own. Sending assets (cryptocurrency coins or tokens) to the platform will allow you to stake and receive interest from the liquidity that you provide. This works in reverse if you need to borrow because you will have to repay the loan you took with interest in order to take your assets from the platform.
You will have to start your investment by obtaining cryptocurrency. After you have a secure wallet, go visit your nearest Bitcoin ATM to get started with Defi.
For more information, contact a Bitcoin ATM company.
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