{"id":23950,"date":"2023-06-23T07:04:28","date_gmt":"2023-06-23T07:04:28","guid":{"rendered":"https:\/\/zebpay.com\/in\/?p=23950"},"modified":"2023-06-23T07:04:29","modified_gmt":"2023-06-23T07:04:29","slug":"how-to-invest-in-defi-crypto","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto","title":{"rendered":"How to Invest in DeFi: Introduction to Investing in DeFi"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Getting_Started_with_DeFi_Investments\" title=\"Getting Started with DeFi Investments\">Getting Started with DeFi Investments<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Set_up_a_Crypto_Wallet\" title=\"Set up a Crypto Wallet\">Set up a Crypto Wallet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Acquire_Crypto_Coins\" title=\"Acquire Crypto Coins\">Acquire Crypto Coins<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#How_to_Identify_DeFi_Investment_Opportunities\" title=\"How to Identify DeFi Investment Opportunities?\">How to Identify DeFi Investment Opportunities?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Staking\" title=\"Staking\">Staking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#DeFi_Lending\" title=\"DeFi Lending\">DeFi Lending<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#DeFi_Trading\" title=\"DeFi Trading\">DeFi Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Interest_in_Savings_Accounts\" title=\"Interest in Savings Accounts\">Interest in Savings Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#DeFi_Yield_Farming\" title=\"DeFi Yield Farming\">DeFi Yield Farming<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#What_are_the_Risks_and_Mitigation_Challenges_in_DeFi_Investment\" title=\"What are the Risks and Mitigation Challenges in DeFi Investment?\">What are the Risks and Mitigation Challenges in DeFi Investment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Steps_to_Invest_in_DeFi_A_Step-by-Step_Guide\" title=\"Steps to Invest in DeFi: A Step-by-Step Guide\">Steps to Invest in DeFi: A Step-by-Step Guide<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Create_a_Wallet\" title=\"Create a Wallet\">Create a Wallet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Choose_a_Blockchain_Network\" title=\"Choose a Blockchain Network\">Choose a Blockchain Network<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Fund_your_Crypto_Wallet\" title=\"Fund your Crypto Wallet&nbsp;\">Fund your Crypto Wallet&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Choose_a_DeFi_Protocol\" title=\"Choose a DeFi Protocol&nbsp;\">Choose a DeFi Protocol&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/zebpay.com\/in\/blog\/how-to-invest-in-defi-crypto\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Decentralised finance, or DeFi, consists of many financial products and services easily accessible to anyone from anywhere in the world. DeFi allows crypto users greater control over their funds. New Decentralised projects are added weekly, making it a hotbed for innovation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Getting_Started_with_DeFi_Investments\"><\/span>Getting Started with DeFi Investments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is vital to do your due diligence and research about the various aspects of a DeFi protocol. It is essential to educate yourself about DeFi as there are several risks associated with it. Risks such as rug pull scams, fake projects, exit scams, and others, so do your research before investing in any DeFi protocol. It is best to invest in DeFi projects that have already been audited. Here are some of the steps to get started with DeFi:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Set_up_a_Crypto_Wallet\"><\/span>Set up a Crypto Wallet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Crypto wallets are digital wallets that allow you to store crypto and interact with various DeFi protocols. Usually, there are two types of digital wallets: cold and hot wallets. <a href=\"https:\/\/zebpay.com\/in\/blog\/how-to-choose-a-crypto-wallet\" target=\"_blank\" rel=\"noreferrer noopener\">Choose a crypto wallet<\/a> that best serves your financial interests and goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Acquire_Crypto_Coins\"><\/span>Acquire Crypto Coins<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Similar to stocks, where you need cash to invest, you need to acquire crypto coins to participate in and interact with various DeFi protocols. Some wallets are on crypto exchanges, where you can purchase crypto coins. Most protocols are built on the Ethereum platform, so it is advisable to start with <a href=\"https:\/\/zebpay.com\/in\/blog\/what-is-erc-20\" target=\"_blank\" rel=\"noreferrer noopener\">ERC-20 tokens<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Identify_DeFi_Investment_Opportunities\"><\/span>How to Identify DeFi Investment Opportunities?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now that we know the first steps to getting started with DeFi, let\u2019s look at some protocols that make it popular for investments.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Staking\"><\/span>Staking<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One of the most common crypto investment options is staking. It is essentially a buy-and-stake investment strategy to earn profits in the long run. It involves locking up crypto tokens to validate transactions in the DeFi protocol. You can earn profits from transactions made within the protocol you help validate. Some <a href=\"https:\/\/zebpay.com\/in\/blog\/what-is-staking-crypto\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto staking<\/a> options can make you more money than traditional savings accounts. It is a good option if you have a large amount of crypto sitting in your wallet and want to put it to good use. Most popular crypto exchanges offer staking services, which can prove profitable, especially now as millions of dollars are being put into new blockchain protocols.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DeFi_Lending\"><\/span>DeFi Lending<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Similar to traditional lending, crypto users can earn interest by lending their crypto to borrowers. Decentralised applications, or dApps, connect borrowers to lenders based on loan size and crypto collateral.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/in\/blog\/how-does-defi-lending-work\" target=\"_blank\" rel=\"noreferrer noopener\">How Does DeFi Lending Work<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DeFi_Trading\"><\/span>DeFi Trading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can also earn by trading various Defi related crypto on popular crypto exchanges like ZebPay, Binance, and Coinbase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_in_Savings_Accounts\"><\/span>Interest in Savings Accounts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Another investment option in DeFi is to create a crypto savings account. You can earn interest by transferring crypto sitting idle in your wallets to a crypto savings account. DeFi savings accounts can offer higher yields compared to traditional savings accounts. For example, Aqru, a crypto savings account provider, offers flexibility to users by not putting conditions on locking their crypto and allowing them to withdraw whenever they wish.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"DeFi_Yield_Farming\"><\/span>DeFi Yield Farming<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/zebpay.com\/in\/blog\/what-is-crypto-yield-farming\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto yield farming<\/a> is a more complex version of staking, and the term comes from how farmers maximize their yield by switching from one crop to another. Similarly, DeFi yield farming is about rotating your crypto investments to different yield farms. This DeFi protocol uses smart contracts to lock crypto tokens and pay interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Risks_and_Mitigation_Challenges_in_DeFi_Investment\"><\/span>What are the Risks and Mitigation Challenges in DeFi Investment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Failure among start-ups is common, so new companies using <a href=\"https:\/\/zebpay.com\/in\/blog\/an-introduction-to-defi\" target=\"_blank\" rel=\"noreferrer noopener\">DeFi<\/a> technology may not succeed, resulting in a loss of funds. Additionally, DeFi protocols do not provide insurance like traditional institutions in case of theft or if you become a victim of a crypto scam.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_to_Invest_in_DeFi_A_Step-by-Step_Guide\"><\/span>Steps to Invest in DeFi: A Step-by-Step Guide<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"384\" src=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/06\/Steps-to-Invest-in-DeFi-1024x384.jpg\" alt=\"Steps to Invest in DeFi\" class=\"wp-image-23952\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/06\/Steps-to-Invest-in-DeFi-1024x384.jpg 1024w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/06\/Steps-to-Invest-in-DeFi-300x113.jpg 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/06\/Steps-to-Invest-in-DeFi-768x288.jpg 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/06\/Steps-to-Invest-in-DeFi-150x56.jpg 150w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/06\/Steps-to-Invest-in-DeFi.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Create_a_Wallet\"><\/span>Create a Wallet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You have to create a <a href=\"https:\/\/zebpay.com\/in\/blog\/what-is-a-crypto-wallet\" target=\"_blank\" rel=\"noreferrer noopener\">crypto wallet<\/a> to start investing in various DeFi protocols. Hot and cold wallets are the two main types of crypto wallets. Choose a crypto wallet that best suits your financial interests and goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_a_Blockchain_Network\"><\/span>Choose a Blockchain Network<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Choose a primary network for your DeFi investment after you have set up your crypto wallet. For example, Ethereum is the leading blockchain for DeFi protocols.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fund_your_Crypto_Wallet\"><\/span>Fund your Crypto Wallet&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Next, purchase native crypto tokens of the blockchain of your choice, such as ETH for Ethereum. You can buy crypto tokens from either a centralised or Decentralised crypto exchange.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Choose_a_DeFi_Protocol\"><\/span>Choose a DeFi Protocol&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Choose a protocol to start your DeFi investment journey by staking or lending crypto tokens. You can also invest in liquidity pools to diversify your crypto portfolio.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>DeFi protocols offer similar services as conventional financial institutes, such as lending, savings accounts, and trading, but they are Decentralised and enable users to have better control over their funds. This article lists ways to get started with DeFi investments. There are several investment opportunities in DeFi, such as yield farming, staking, and savings accounts. DeFi has become a popular method to invest in crypto. However, there are some risks, just like any other investments. So it is vital to do your research and understand the various aspects of a DeFi protocols before investing.<\/p>\n\n\n\n<p>You can buy popular Defi related crypto on ZebPay India! Click on the button below and begin trading.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color wp-element-button\" href=\"https:\/\/zebpay.com\/exchange\/BTC-INR\" target=\"_blank\" rel=\"noreferrer noopener\">trade now<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Decentralised finance, or DeFi, consists of many financial products and services easily accessible to anyone from anywhere in the world. DeFi allows crypto users greater control over their funds. New Decentralised projects are added weekly, making it a hotbed for innovation. Getting Started with DeFi Investments It is vital to do your due diligence and [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":23951,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[16],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/23950"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=23950"}],"version-history":[{"count":1,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/23950\/revisions"}],"predecessor-version":[{"id":23953,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/23950\/revisions\/23953"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/23951"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=23950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=23950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=23950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}