Before delving into the various platforms and protocols, each has its own functioning and indispensable tools, which may be different but which ultimately all have the same concept at the base. blockchain In fact, all the projects that we are going to analyze are d and as such they interface through an entry point, which in all cases is always represented by the wallet, possibly decentralized and , in the sense that there are no third parties that manage the wallet, so as to ensure the security that no one can recover their private keys. ecentralized platforms non-custodial wallet In most of the examples we are going to analyze, as regards this blockchain, it will be the and specifically the browser extension, in this case we will use the . MetaMask wallet Brave browser If, on the other hand, we wanted to operate via our smartphone and then do all the operations comfortably with our terminal then one of the applications that can be used will be that of , which not only acts as a wallet but also has a browser inside that allows you to manage the platforms that are based on the , but there are also other solutions and the important thing that they have a browser inside them that allows you to manage the various blockchains, moreover there are also multi blockchain wallets and therefore manage several with a single wallet / program and in this case a good solution is , and in each of these wallets it will be enough to either create a new address or directly import our private key. Trust Wallet Ethereum blockchain Token Pocket After we have chosen our wallet, we must also have another fundamental thing, which are obviously cryptocurrencies, in this case , both to be able to interact and then convert this crypto with other cryptocurrencies and tokens of the various protocols and both to cover the fees of the various transactions. Ethereum (ETH) As regards the cost of the fees, this is variable and is not determined a priori, for simple operations the cost is lower, therefore less than 1 dollar, while for complex ones even several tens of dollars. Another aspect that affects the cost of fees is that of the value of Ethereum (ETH) itself, because if it is true that a simple transaction costs less than $1 but if the price of the asset has a 4 or 5-digit value, then the same transaction will have a higher value, although the gas used is the same. Although it is true that we can adjust the level of gas used to carry out a transaction and therefore lower it and make it slower, this is a slightly complex procedure and which could instead cause a higher cost if the parameters are not set correctly, so when there will be to confirm the transaction, then to avoid problems leave the relative default settings and everything will run smoothly. As we said, it is difficult to determine in advance how many ETHs we will need, but one piece of advice I can give, and in order not to have any kind of gas side problem, is to reserve at least 1 ETH as a cost to pay all the fees, so in this way we can operate without problems, also because these fees must be paid for each individual transaction, except that some platforms bear the cost of the related transaction, but this depends on the protocol and not all use this type of system. So as regards the Ethereum blockchain, then we see that we need to have at least a part of ETH that will be consumed to carry out the operations, and this means that if we have to interact with a protocol we first consider and estimate how much to invest so then we will not have to do 10 different operations and pay the fees 10 times, it is better to group the operations into one and make only one rather than several. Finally, in addition to having that ETH aside, we should also have the resources that we are going to invest and use in the various protocols, and since we think about the Ethereum blockchain, it is always advisable to start from ETH, so then we can exchange them at the moment and for a token or stablecoin which will require that type of protocol, bearing in mind what was previously said about the stablecoin issue. As for the initial investment with which to start, it is necessary to remember what we said at the beginning, that is to say that we must invest only what we are willing to lose, neither more nor less, this means that with little capital we will have little advantage and vice versa, but at least try to use enough to cover the cost of the related fee, because if we want to invest $1 and the fee is $5 then it is not convenient or as they say "the game is not worth the candle", and I advise have at least a ratio 10 times higher than the cost of the fee so at least it makes sense proportionate to the investment made, just multiply the cost of the fee and see the result and then use that as a starting point and increase it if necessary. Another tool that can help and assist us in the choice and understanding of a specific token linked to a project, is to use platforms of analysts and statistics to better understand both the volume that generates that token and how much it is worth, because let's not forget that the value of a token also affects the choice whether to invest or not or whether it has a pattern that could be interesting and therefore focus on one or the other, even if we cannot analyze them all and also because others will be created, but at the base having a little knowledge of what is on the market can be useful to start moving. In this sector there are several platforms that provide data both as regards the various tokens and as regards the different dApps that exploit that token and therefore summarily understand if there are movements and by how much, because with greater movement and volumes then we will have greater ease and reliability of that platform or protocol, as well as which is the amount of the value, expressed in dollars and in tokens of that protocol, and therefore already determining whether it is convenient or not. TVL (Total Value Lock) Several platforms must be reported, all with some interesting features, and here we find , which gives us an estimate of the protocols and total dollars blocked, and which includes several blockchains, then there is the DeFi section of which examines the various tokens in this sector and sorts them by market capitalization, excellent if we want to understand the trend of a token, as regards the platforms and therefore the most used dApps, here we find both that , while if we want to have a numerical estimate on the reliability of a given token then the choice falls on . DeFi Review CoinMarketCap Dapp Radar Dapp DeFi Score These listed above are only part of the options that we can take into consideration, but they are certainly not the only ones and in the future we will be able to witness the birth of others and more complete ones, but with these tools we have at least a general picture of what is happening both on the Ethereum blockchain than the others, therefore important to save and check for more details on a platform or token, but as mentioned there are also others, not too many, as regards the other blockchains, because precisely from the combination of these tools we can evaluate whether to bet or not but also to use a certain protocol or not. Last but not least, it is necessary to keep in mind both the entry and exit points, in fact when working with , in addition to having a budget that we have set ourselves, it is also appropriate to evaluate the different prices of the various tokens and crypto for understand if and when to convert for a stablecoin and vice versa, because in this sector the volatility is quite high and therefore to have an advantage it is better to know how to enter when the market is low and prices are unfavorable and sell when the first signs of recovery begin, because with particular exceptions, after a sudden surge, these will inevitably fall, and this is where we must get the maximum advantage, but if you do not have clear ideas a priori then it is difficult to determine when to exit or not. decentralized finance (DeFi) In summary, we will need: - ; A wallet, MetaMask, Trust Wallet, or similar - ; 1 ETH to cover all fees - ; X crypto or token or stablecoin -  An and also one for the profit we want to obtain. entry price, an exit price So, now what? Now is time to interact with Your favorite protocol, and if You don't know how to start, than begin with this book that explains the various topics in detail, which takes the name of " ", important because it not only explains the basics of this sector and the various steps of the various protocols, over 30, but it is also the only one that examines 3 different blockchains such as ( ), and ( ). Mastering DeFi - A practical guide for beginners and the advanced Ethereum ETH EOS Tron TRX A that analyzes the which are: book macro-categories of decentralized finance Lending and Borrowing Payments Decentralized Exchange Asset management Derivatives All organized into and also divided by blockchain so as to have a complete picture of what we find on the various blockchains and also make the relative comparisons to leave maximum freedom for anyone to use the blockchain they prefer without closing the door to others. 8 chapters analyzed in detail and details, with relative fundamental steps, an indication of the various costs incurred to carry out the various transactions, so as to make the reader aware before he can interact with him. Over 30 protocols Translated into , , , , , , , , and , so as not to exclude anyone from this revolution that is underway and will continue in the years to come. 8 different languages Italian English German French Spanish Portuguese Dutch Japanese

TRON

Dapp

fees

How to solve the energy inefficiency of Bitcoin and Ethereum?

Decentralized domains on the EOS blockchain: An Overview

Check my free book Mastering EOS

Read My Stories

All my books (over 100)

My StartUp

1 NFT = 1 Book 

A must-read book

Invest in my StartUp

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Trading

Nominated for 2022 - HackerNoon Contributor of the Year - Tokenization

Nominated for 2022 - HackerNoon Contributor of the Year - Crypto Adoption

Too Long; Didn't Read

DeFi Tips - Useful tools for Ethereum blockchain

DeFi Tips - Useful tools for Ethereum blockchain

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

1 Book = 1 NFT

About That Fake Beeple NFT...

An Italian Walks Into the NFT Awards 2020

Bitcoin - where is it cheaper to transfer them?

Can the NFT Save the Digital Magazine?

1 Book = 1 NFT

About That Fake Beeple NFT...

An Italian Walks Into the NFT Awards 2020

Bitcoin - where is it cheaper to transfer them?

Can the NFT Save the Digital Magazine?

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps