Dive Into DeFi: A Beginners Guide to Buy, Hold, Earn, and Compound. Welcome to DeFi (Part 1)

One of my personal goals is to always have a fairly simplified yield farming strategy that compounds the positions that I am bullish on while not taking unnecessary risk.

By
Ben Antes
on
March 14, 2021
Category:
Dive Into DeFi

Introduction

I was talking with an old college buddy this morning about crypto, and he mentioned that he is a buy-and-hold kinda guy. He asked my thoughts on Blockfi and we talked a bit about decentralized finance (De-Fi). I began to realize during the brief conversation how absolutely complex DeFi sounds to someone who traditionally dollar-cost averages into crypto on an exchange. I decided to write a series about how to implement a buy and hold strategy while utilizing DeFi protocols to boost returns.

This article will focus on getting yourself set up for the BSC onboarding process.

Enter the Off-Exchange World

The first step to entering DeFi is to take the leap from exchange-custody to self-custody. Rather than provide tutorials, here are some tutorials about how to do just that:

First, you will need to install Metamask on your computer: https://medium.com/@mark.lasia/how-to-set-up-an-erc20-compatible-ethereum-wallet-cda8dabc4b89

Once that is completed, connecting to Binance Smart Chain is fairly simple, just follow the tutorial here:

https://www.bsc.news/post/connecting-metamask-wallet-to-the-binance-smart-chain

Now, you have a wallet ready to receive BNB BEP-20 and other BEP-20 tokens.

Buying BNB?

You can exchange for BNB on Binance.com, and US users can use Binance.us. It’s important to note that the BNB you purchase on these exchanges is BNB Bep2, so it is not compatible with your newly created Metamask Wallet.

You can convert your BNB Bep2 tokens to Bep20 in a couple of different ways. A fairly easy and effective way is via Binance Bridge, found here: https://www.binance.org/en/bridge.

You can also send your BNB token to Trust Wallet (an app found in both the Apple Store and Google Play store), and complete your conversion there. Once the conversion is completed, send your Smart Chain BNB to your BSC-connected Metamask wallet and you are ready to interact with BSC DeFi Dapps.

Take Your Time

The first time you go through this process will seem intimidating. Make sure to take your time when setting everything up, and follow the tutorials provided here. When sending crypto from wallet to wallet, I always recommend a small test transfer. This will ensure what you send is received on the other end, which is particularly important when moving from blockchain to blockchain. There is limited room for error when completing this process. You won’t be upset spending a little extra time to make sure everything is correct.

Next week I will discuss ways to implement a buy, hodl, earn, and compound strategy that requires little time or management. One of my personal goals is to always have a fairly simplified yield farming strategy that compounds the positions that I am bullish on while not taking unnecessary risk.

Tags:
No items found.
Ben Antes

KCrypto is BSC News' Financial manager and one of the four founding team members. KCrypto self-proclaims himself as a yield farming "guru" who finds himself researching the latest De-Fi projects.

Text Link

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.