DEFI - What is DEFI? Well, it is decentralized finance. What does this mean? It means you can trade currencies between people without a middle man essentially (a bank, or service provider). There is no gatekeeper, no centralized company like an exchange or government that can stop you from transacting with other people. The line of connection between you and the final destination for your funds is a direct route to their digital wallet. No more wire transfers that take weeks; no more banks shutting down your ability to transact; no more banking fees for storing money. The ability in some protocols to earn interest on your holdings. Its best to avoid centralized platforms that give you interest as these often go out of business and your funds with them, examples like (Celcius, Blockfi, and more). I'll show you safer ways to earn interest later in the course if you want to increase risk. The safest approach would be to just buy and hold Bitcoin for 5-10 years in cold storage. The blue text is a link to a Nano ledger, the most popular cold storage wallet that is a must have if you will be buying Crypto and holding for years.
So an exchange like Coinbase or Binance is a centralized exchange because you buy coins through their platform and your exchange wallet on the platform is not really owned by you but belongs to your account which they can control. Its gate kept by them and your ability to withdraw your coins is allowed only if Binance or Coinbase allows it. (They rarely do freeze your account, but they could if they had to.) Other lesser known exchanges pose higher risk of losing funds and is always recommended to be googled for reviews.
So how do you trade DEFI (Decentrazlied Finance)
If your plan is to buy Bitcoin or Ethereum in lump sums and hold it for 6 months or years, then I recommend skipping the next step where I teach you how to install Metamask and can skip the sections about Metamask in the course as you see them. In long term storage, just use the Ledger.
This is the next step you can skip if you are doing the "relaxed" course.
Well this is where I recommend you install a Metamask if you plan to more actively trade Crypto or NFT's. The website for Metamask is metamask.io but you can google it. When you've entered the website, use your Similarweb extension tool you downloaded earlier to validate that it has high visitor count. Once you downloaded Metamask, you can later hook up your Ledger to it use it as a shield from hackers. Hackers can enter your Metamask if you they know your login details, but they cannot access your funds if you use a Ledger.
Governance token, what is it? A governance token is a token that usually is attached to a protocol or think a company, an exchange, or yield farming platform (platforms to get earn interest on coins) and and any other protocol. Having a Governance Tokens, means you get a certain amount of power to vote for what happens in that protocol in the future. The amounts of tokens needed for certain voting powers is decided by that platform. This isn't always important if you are investing in a platform, but can be a nice bonus as you can help decide the future of the protocol. If you are investing in Bitcoin, you don't need governance, and that's kind of the beauty of it because its decentralized and its use case is simple, store of value or currency with a capped supply with no one controlling the flow of exchange.
So an exchange like Coinbase or Binance is a centralized exchange because you buy coins through their platform and your exchange wallet on the platform is not really owned by you but belongs to your account which they can control. Its gate kept by them and your ability to withdraw your coins is allowed only if Binance or Coinbase allows it. (They rarely do freeze your account, but they could if they had to.) Other lesser known exchanges pose higher risk of losing funds and is always recommended to be googled for reviews.
So how do you trade DEFI (Decentrazlied Finance)
If your plan is to buy Bitcoin or Ethereum in lump sums and hold it for 6 months or years, then I recommend skipping the next step where I teach you how to install Metamask and can skip the sections about Metamask in the course as you see them. In long term storage, just use the Ledger.
This is the next step you can skip if you are doing the "relaxed" course.
Well this is where I recommend you install a Metamask if you plan to more actively trade Crypto or NFT's. The website for Metamask is metamask.io but you can google it. When you've entered the website, use your Similarweb extension tool you downloaded earlier to validate that it has high visitor count. Once you downloaded Metamask, you can later hook up your Ledger to it use it as a shield from hackers. Hackers can enter your Metamask if you they know your login details, but they cannot access your funds if you use a Ledger.
Governance token, what is it? A governance token is a token that usually is attached to a protocol or think a company, an exchange, or yield farming platform (platforms to get earn interest on coins) and and any other protocol. Having a Governance Tokens, means you get a certain amount of power to vote for what happens in that protocol in the future. The amounts of tokens needed for certain voting powers is decided by that platform. This isn't always important if you are investing in a platform, but can be a nice bonus as you can help decide the future of the protocol. If you are investing in Bitcoin, you don't need governance, and that's kind of the beauty of it because its decentralized and its use case is simple, store of value or currency with a capped supply with no one controlling the flow of exchange.