Decentralized Finance (DeFi) Guide

Decentralized Finance (DeFi) Guide

This guide covers the most important categories of the DeFi sphere that promises to change the financial world as we know it.

  1. Introduction to DeFi
  2. Stablecoins
  3. Payment Services
  4. Decentralized Borrowing and Lending
  5. Staking
  6. Decentralized Insurance
  7. Decentralized Exchanges (DEXes)
  8. Decentralized Identity
  9. Top DeFi Blockchain platforms

 

What is Decentralized Finance (DeFi)?

DeFi stands for Decentralized Finance and refers to a financial ecosystem that is built on top of blockchain technology. Most DeFi applications are built on top of Ethereum, but other protocols are used as well.

Vision:

DeFi aims to create a permissionless and transparent financial environment that is open-source and available to everyone without centralized control. DeFi includes a wide variety of financial applications such as payments, lending and borrowing money, insurance, and trading via decentralized exchanges. These applications are available to everyone through the use of decentralized blockchain networks and smart contracts.

"Trading the Decentralization of the Financial System"  

Author: George M. Protonotarios

PREFACE

"A decade ago, the issue, exchange, and use of digital money without the intervention of a centralized bank was a dream for the financial industry. That dream came true faster than anyone could have predicted. The global penetration of the Internet works as an accelerator to the acceptance of every new technology that aims to serve the emerging needs of people. This is the ultimate goal of every technology, to better meet the needs of people, and nothing else matters."

Crypto Trading Tutorial

Estimating the Fair Market Value of Bitcoin

Attempting to estimate the Bitcoin's Fair Market Value is tricky, as there are no hard fundamentals or hard assets backing BTC. Nevertheless, based on network activity and price, there are a few metrics that can help investors understand the price cycles of Bitcoin. This analysis covers the folloiwng metrics:

  1. Hashrate
  2. Bitcoin Net Unrealized Profit/Loss
  3. MVRV & MVRV-Z Score
  4. BTC Addresses with Balance ≥ $1M USD
  5. Bitcoin Miner's Rolling Inventory (MRI)
  6. Mayer Multiple
  7. Stock to Flow (S2F) Model
  8. A Strategic Approach to Bitcoin's Valuation

 

Hashrate

The more hashing power in the BTC network, the better its security and resistance to a potential attack. The BTC network hashrate is measured in hashes per second (H/s). The calculation involves mining difficulty and the average Bitcoin block time. These are some basic conclusions regarding the impact of hashrate:

  • The more BTC mining the higher the hashrate
  • If the difficulty of the Bitcoin network increases, the hashrate also increases
  • The higher the hashrate, the more secure the Bitcoin network
  • The higher the hashrate, the higher the 'fair' value of BTC

» https://www.blockchain.com/charts/hash-rate

Tutorial -How to Select and then Buy Cryptocurrencies

How to Buy Cryptocurrencies

Nowadays, there are more than 800 different altcoins and 600 different tokens. All coins and tokens are regarded as cryptocurrencies.

Explaining Coins and Tokens

Alternative coins (altcoins) refer to coins alternative to Bitcoin. The great majority of these coins is based on Bitcoin’s protocol and are often called as Bitcoin forks. A fork means a change in the underlying software protocol which can lead to the split of the original block-chain. Tokens are not coins and represent a particular asset or utility. A token can represent any tradeable asset, such as services and tangible/intangible commodities. Investors can trade Coins and Tokens using the same account on a crypto exchange.

This tutorial includes:

(i) How to Choose Cryptocurrencies

(ii) How to Choose a Cryptocurrency Exchange

(iii) How to Buy Cryptocurrencies using Cash

(iv) Cryptocurrency Exchanges that Accept Cash