Getting Started in DeFi
Let’s get that APY
The first thing you need to do is create a DeFi wallet. Before writing this piece, I relied on CoinBase or Binance to hold my Crypto. Both of these exchanges are called central exchanges or CEXs. CEXs are responsible for the custody of your crypto assets. This means if you get hacked or lose your password, there is a responsible body. For DeFi, you will need to create an actual wallet. You are the custodian of your crypto assets.
I researched a few different wallet options and tried two of them out: MetaMask and Argent. MetaMask is a google chrome extension, meaning you will primarily use your browser to trade. MetaMask is solely a wallet. Argent is a slick mobile application, which reminds me of RobinHood. I initially downloaded Argent and paid a small gas fee to get the wallet. Not only is Argent a wallet, but it also acts as an aggregator for the different pools. I used apple pay to transfer $100 into my wallet and the “invest” tab. I wanted to exchange my cash for some Sushi. I went ahead and proceeded to the next screen to move forward with the transaction. On a side note, Argent acts as an aggregator across the different exchanges. The application will give you the best rate across any DEX. I almost dropped my phone when I saw the Network (gas) fees were nearly $30…so 30% fee. Argent uses more gas than traditional wallets because of its on-chain security model. Although a cool application, I could not afford a 30% fee. I decided to try MetaMask.
I chose MetaMask over other browser wallets because of the integration with so many decentralized applications (dApps). When you sign up for MetaMask, you will need to transfer money into your account. The process is not smooth. First, you will select Wyre to transfer money into your wallet. Wyre is an API that will connect your traditional bank account to your wallet. Wyre will make a one-time pending transaction and then have you verify the transaction. The digits used for verification will be the last four in your pending transaction. Something like Wyre- 5746 will show you. Those last four digits are what is needed to verify the account. Once you confirm, you are good to go.
Most importantly, your private key and key phrases should never be shared with anyone, like ever. Throughout your DeFi journey, always remember that. I tried a traditional bank, then revolut. Finally, I was able to see the pending transaction by using a Chase Credit card.
Okay, so you have your wallet; where to begin? I would recommend checking out Sushi, UniSwap, Aave, YEARN, and one-inch to start. One-inch and YEARN are aggregators which will give you the best rate to swap tokens. I will cover each of these protocols in other articles to compare and contrast. But welcome to DeFi, and the wild west of digital finance.
