How to Become Your Own Bank Using DeFi Cryptocurrency
In my last blog, I went over what cryptocurrency was, how to buy it, and how to store it.
I also went over a few different platforms you can use.
Last weekend I joined my good friend Gven ‘Swami Crypto’ Sairol for a fantastic webinar geared for helping people not only get into crypto, but credit stacking as well.
On the second day of that webinar event, we went over DeFi, so I wanted to get a little into what that is and how you can become your own bank.
Credit Stacking Reveals How to Become Your Own Bank
Before we begin, let’s do a quick run-down on what crypto is – cryptocurrency is any form of currency that exists in digital or virtual form.
The reason crypto is growing in popularity is the fact that it doesn’t rely on banks, instead using a decentralized system to record and encrypt transactions.
DeFi takes this a step further.
So what is DeFi?
Decentralized finance (DeFi) removes the intermediary – the bank and financial institutions – that are between you and financial freedom.
DeFi applications typically use blockchain technologies to help with transactions.
Traditionally, banks take a percentage of your money when you make deposits or withdrawals; that doesn’t even mention the interest you may also be charged.
Using DeFi, you make almost 100% of the fees because you are the bank; and when you’re the bank, your gains explode when the market goes up.
How does this compare to using an actual bank?
With a traditional bank, you borrow or invest, and if you need to get a loan, you have to fill out the paperwork; in some cases, you may be required to go into the bank to do that.
DeFi is similar, except that YOU are in charge of your money.
Another thing with DeFi is that you aren’t reliant on humans – for instance, your bank has rules, regulations, and laws they follow in regard to deposits and fees.
With DeFi, you aren’t interacting with humans; it’s technology.
A major reason people get into DeFi, and cryptocurrency in general, is to build up a passive income stream.
Just like traditional investments, crypto and DeFi allows you to build up income growth for other purposes, such as investing in a business.
Another thing is doing crypto-backed lending, which is similar to tapping into your home’s equity you’ve built up.
With crypto-backed lending, you basically ‘tap into’ the value of your crypto without having to sell it.
How Do I Know if DeFi is For Me?
If you’re already into crypto, DeFi is something that you can add onto what you’re doing now.
If you’re new to crypto, then it’s a possible opportunity once you’ve gotten further in.
Like with crypto, DeFi is fairly easy to get started with, its transparency helps to create a secure environment, and there are no credit checks that would keep you from starting.
Guys, crypto in itself is such a game changer when it comes to finance, especially to start financial freedom.
This is a perfect combination with using business credit to grow business and investments.
If you want to learn more about crypto, then check out Gven’s course and if you want to go further with your credit, then come join our community.