Bitcoin is up over 160% since the beginning of the year and Ethereum over 370% since the first day of 2020. But that’s expected and we expect even more growth in the following years.
The biggest craze of the year is actually Decentralized Finance which strives to make traditional finance obsolete or at least upgrade it by not relying on intermediaries like brokerages, exchanges, or banks.
People from all over the world invested over 14 Billion Dollars in DeFi, most of it in the past 5 months alone. Many got richer, others lost everything. I personally didn’t get too involved because of the high fees required for every transaction. The network was so congested because of all the craze that a single transaction fee could cost well above 100$. And usually, several transactions were necessary.
Besides, how can I know which is the best DeFi project to invest in? The largest functions of DeFi are:
- creating monetary banking services, for example, the issuance of stablecoins
- providing peer-to-peer or pooled lending and borrowing platforms
- and enabling advanced financial instruments such as Decentralized exchanges, tokenization platforms, derivatives, and prediction markets
You might say: ‘That’s Greek to me’, but don’t leave just yet.
I found which could be the easiest solution to invest in DeFi, with minimum risks, and in the following minutes, I’m going to show step by step, exactly how to use it.
The DeFi Pulse Index is a blockchain financial product that makes investing in DeFi effortless and provides exposure to DeFi through one single asset.
If you are familiar with the S&P500 Index from the traditional stock market, it’s similar to that.
The DeFi Pulse Index tracks the performance of the top 11 projects in Decentralized Finance that have significant usage and show a commitment to ongoing maintenance and development. All you have to do is to buy the DeFi Pulse Index token and by doing that, you are exposed to the performance of all these assets.
Looking at the Smart Contract on the Ethereum network you can see that the DPI token is actually backed by and owns these assets. You can see Uniswap, Aave, yearn.finance and all the rest.
Looking at the token itself you can see that there are currently 2887 addresses holding the DPI token. Also, the volume in the past 24h is significant, almost 4 million dollars worth.
For me, the biggest benefit of buying the DeFi Pulse Index is that I can easly get exposure to the best-performing assets, in one single transaction. Otherwise, I would have to go on decentralized exchanges like Uniswap and buy all these assets myself, track their performance, and decide when to sell and rebalance.
The DeFi Pulse Index does all that for me, with one single purchase.
So let me show you how easy it is to do that.
If you want to know more about the index, you can come here to the tokensets.com website or leave your question in the comment section below.
To buy the DPI token you have a few options. If you are familiar and comfortable with UniSwap, you can use that. There’s also some volume on Bilaxy exchange, but in this video, I’m going to show you how to buy the token from the TokenSets website since that’s the easiest option.
The first thing you’ll have to do is come to tokensets.com and sign in. Of course, you don’t have an account yet so you’ll create one.
You can create an account with your email address. This will create your own Ethereum wallet on the website, which is not the best option because you’ll have to send your funds to this wallet and then withdraw them back to your safe wallet.
The other option is to signup using your phone number. Again, not my favorite option either – I don’t like sharing personal information with any sites that ask for it, especially when there are better options.
I recommend using the next 4 options, depending on which crypto wallet you are using. Coinbase Wallet, Ledger, and Metamask are straightforward – if you own coins in any of these wallets you can use that as an option. Wallet Connect allows you to connect your crypto wallet that supports this protocol. For example, Atomic Wallet or Crypto.com DeFi Wallet – which should not be mistaken with the Crypto app, they are different applications. But these and other mobile wallets support Wallet Connect, so just check your wallet settings.
The benefit of these options is that the transaction is made straight on your wallet. You buy with the funds available on your wallet and the DPI token is stored directly there, without other intermediate transactions.
The biggest risk that I see with this DeFi Index is that it’s centralized by the owners of the TokenSets website. They decide which tokens go in the index and the weight of each asset within. So if they screw it up, if something happens with the company or they decide to discontinue the index, your funds might lose their value. So don’t take my word for it, do your own due diligence, and don’t invest more than you can afford to lose.
Having exposure to DeFi is great, but Bitcoin is still number one. Now that the price of Bitcoin is almost reaching its all-time high again, should you buy more Bitcoin or wait? Be sure to check this video that appears on the screen right now to see my answer. It’s a few months old, but the passing of time just confirms my conviction. I’ll see you there!