How to get started with DeFi

When we talk about the crypto revolution, some people say that it is just around the corner. However, what we are seeing is that it has already begun. We can now trade, invest, buy goods and services, both virtual and physical, using cryptocurrencies and tokens.

In fact, even nations are adopting cryptocurrencies as official currencies and so many others using blockchain technology to tokenize their official currencies. In order to help you understand and participate in this new world, I am writing this article. Let’s go!

Blockchain: The technology that changed the game

For many years, we have depended on banks to store value. It was from these centralized institutions that we hoped to deposit money and withdraw or transfer it later on.

However, reality proved this hope is fragile. Just because you have money deposited in any bank does not necessarily mean that you have the right to withdraw it whenever you want. This became very clear in the financial crisis of 2008.

In that same year, however, something incredible happened. Satoshi Nakamoto, someone whose true identity is unknown to this day, using advanced concepts of cryptography created a transaction system that was much more secure than any bank had ever dreamed of.

In short, blockchain is a decentralized open ledger that is tamper-, fraud-, and error-proof. You can confirm every transaction ever made using a blockchain explorer. Furthermore, no government in the world can bring it down, no matter how hard they try.

This was the birth of Bitcoin, a completely decentralized way to send and receive currency securely, without intermediaries. Since then, a real revolution has taken place. Today we have amazing decentralized projects, such as Empire Token, taking this concept to the next level.

What is a Crypto Wallet

To start making your first crypto purchases and transactions, you need to use a tool that enables you to “talk” to the blockchain. A crypto wallet is a platform used to store encrypted information, allowing you to receive and send cryptocurrencies.

In addition, your wallet also stores the address where your cryptocurrencies and crypto assets are located on a particular blockchain. So to start interacting with a blockchain you need to create a wallet, that is what you will learn now.

Creating your first crypto wallet

First of all, you need to know that there are two types of wallets: hot wallets and cold wallets. Hot wallets are those that are connected to a device with internet access, such as your computer. Cold wallets, on the other hand, are kept offline, similar to a flash drive or external hard drive.

To perform any operation such as buying, selling or trading crypto assets, you must have your wallet connected to the Internet, thus using a hot wallet.

There are several types of crypto wallets available, but in this article, I recommend one of the easiest and safest to use: MetaMask. MetaMask can be used as an extension in your browser, and it is also possible to install the app on your smartphone.

MetaMask comes with default access to the Ethereum blockchain, but it is possible to add other networks, such as the Binance Smart Chain, one of the most used today. Now let’s create your wallet and add the Binance Smart Chain network to it.

1. Go to https://metamask.io/download/ and install the extension for your browser.
2. When the installation is complete, a MetaMask page will open in a new tab. If it doesn’t, click on the MetaMask extension icon in your browser. Now click the “Get Started” button
3. Select the “Create a New Wallet” button and accept the terms to proceed.
4. Create a password. This password will be used to authenticate your MetaMask login.
5. Write your Secret Backup Phrase on a piece of paper and keep it safe. This is used to recover your account and should not be shared. Confirm it and click the “Next” button

Congratulations! You have just created your first crypto wallet. Now you need to know a few things. First of all, your wallet has two keys: a public key and a private key.

Your public key is used to prove that a transaction was indeed signed by you. It can be shared in order to receive crypto assets, it is like your bank account number.

Your private key is analogous to your signature or fingerprint. It is used to sign transactions cryptographically and should not be shared.

Connecting your Wallet to the Binance Smart Chain

In the cryptoverse there are several blockchains, each of them with their own native tokens. In general, blockchains are closed systems, so it would be impossible to buy a native token from the Binance Smart Chain, one of the most popular networks today, on the Ethereum blockchain.

However, it is possible to buy representations of a cryptocurrency on a blockchain that can be easily exchanged to the original blockchain native token. These tokens are known as “wrapped tokens” and can be easily purchased on the Binance Smart Chain.

Furthermore, the Binance Smart Chain is the network on which the most interesting and scalable tokens emerge, due to the relative ease of implementing a token on this blockchain. Therefore, it is essential for a good navigation in the cryptoverse that your wallet is connected to it.

Now that you have just created your first wallet, let’s connect it to the BSC network. By default, MetaMask comes with access to the Ethereum network, but it is easy to add the Binance Smart Chain to it as well. Just follow these steps:

1. Click on your profile icon in the top-right corner of the page. This will open the “My Accounts” navigation menu.
2. Click on the “Settings” option at the bottom of the menu. Now click on “Networks” to open your Network Settings.
3. Click on the “Add Network” button on the top navigation bar.
4. Adding Binance Smart Chain network:

After clicking “Add Network” you will need to fill in the fields with the data provided below to connect Binance Smart Chain to MetaMask. To do this, simply copy and paste the following information into the fields:

Mainnet

Network Name: Smart Chain

New RPC URL: https://bsc-dataseed.binance.org/

Chain ID: 56

Currency Symbol (optional): BNB

Block Explorer URL (optional): https://bscscan.com

Once you have filled out the fields correctly, click on “Save”. You have now connected BSC Mainnet to MetaMask and can now trade on the Binance Smart Chain!

With your crypto wallet properly connected to BSC Mainnet, it’s time to purchase your first cryptocurrency/token.

In order to purchase a cryptocurrency/token you generally must make use of a crypto exchange. There are basically two types of crypto exchanges: DEX and CEX.

DEX stands for Decentralized Exchange, meaning that they do not have an owner and all transactions are performed directly from user to user. Centralized Exchanges (CEX), on the other hand, are staffed by a CEO.

Both ways of buying tokens are very secure and simple to use. In this article, we will buy our first Empire Token with a credit card at one of the world’s easiest-to-use crypto exchanges: Indacoin. Just follow the steps below to buy your first token:

1. Visit Indacoin.com
2. Choose the pair USD/Empire and insert the amount of Empire you desire to purchase. Enter your email and your wallet address (public key). Confirm that you agree to the Privacy Policy and Terms of use, as well, confirm that you aren’t using your funds for dubious purposes.
3. Click “Continue”
4. Type your residential address.
5. Enter your full name and phone number for verification.
6. Enter your Credit or Debit card information. Once again, click on continue.
7. Enter the 3DS verification code you received on your phone. This provides an extra layer of protection for payment card transactions in card-not-present scenarios.
8. Now, Indacoin will verify your purchase by sending, again, another verification code to your phone. Just type that in.

Easy as that, now your FIAT money has been converted into EMPIRE. Indacoin is a Cryptocurrency exchange headquartered in the United Kingdom and trusted by thousands of users.

If you prefer to buy Empire Token from some other crypto exchange, we have several posts about this on our blog. I will leave a couple of them below, so you can get better informed:

• How to Buy Empire at Gate.io: https://empire.blog/how-to-buy-empire-at-gate-io/
• How to Buy Empire on LBank with Credit Card: https://empire.blog/how-to-buy-empire-on-lbank-with-credit-card/

Once you have purchased your first Empire Tokens, you can choose to let them remain in your native crypto exchange wallet or transfer them to your MetaMask. Transferring your tokens to your MetaMask wallet is necessary to interact with the DeFi environment.

A good example of this is if you want to buy or mint an NFT on the Empire NFT Marketplace. When entering the Empire NFT Marketplace, you can easily connect your MetaMask wallet and start minting, buying and selling NFTs.

Another good reason for you to transfer tokens to your MetaMask wallet is to be able to interact with DEXs like PancakeSwap.

PancakeSwap is a DEX that uses Staking Pools, meaning that users of the platform can add liquidity to a particular pair, for example EMPIRE/BNB and profit on fees.

In fact, there is a multitude of possibilities to profit with crypto, from trading operations to less risky options such as staking. We will do a detailed article later on the various ways to profit with crypto.

One of them you have already done by buying Empire Token, the most promising, secure and committed to improvement token running on Binance Smart Chain!

How to use a Blockchain Explorer

We know that blockchains are public databases that contain all the information regarding the transactions performed on them.

As such, anyone can search and see all the transactions that have occurred on a certain wallet if they know its public key (wallet adress.)

Similarly, all transactions have a unique code, Transaction Hash ID, which acts as the transaction identity.

Searching the TXID of a transaction in a blockchain explorer will show you which wallets were involved, the amount of the transaction, when it occurred, and which wallet sent or received the assets.

One of the most popular blockchain explorers is CoinMarketCap, enabling you to track all important information on blockchains such as Bitcoin, Ethereum, Litecoin, and Binance.

Access CoinMarketCap’s Blockchain Explorer: https://blockchain.coinmarketcap.com/

Select the blockchain you want to explore and paste the walled address or TXID you want to search. It’s easy as that, now you have all the information about the latest transactions, how many tokens that wallet holds, etc.

There are also several other Blockchain Explorers, I will list some of them below for you to check out.

• BSCScan (Binance Smart Chain Explorer): https://www.bscscan.com/
• TokenView (Ethereum, Monero, Litecoin, Ontology, NEO, ZCash, TRON, and many other cryptocurrencies): https://tokenview.com/
• BlockCypher (Bitcoin, Ethereum, Grin, Litecoin, Dogecoin, Dash): https://live.blockcypher.com/

Conclusion

The crypto world is full of fascinating opportunities. Learning how to make the right use of its tools and how to interact with it is a skill that becomes more and more necessary not only for enthusiasts or investors, but for everyone.

The more knowledge you gain about crypto and DeFi, the freer you will be from any tyranny. Moreover, more profit and wealth opportunities emerge.

I hope we helped you at least a little to understand and become involved in this new world. If you want articles on specific topics, such as the science behind blockchain technology, or more practical ones, let us know. Also, if you have any questions, please leave us a comment. Empire Team is always available to help you.