<aside> 📈 This process will take around 10-20 minutes
</aside>
DeFi (decentralised finance, pronounced 'dee-fi') apps are financial services that run on the blockchain. They are 'decentralised' because the money is managed by code on the blockchain instead of by banks. This results in lower fees, better rates of return and even some totally new types of products for the end users.
But how do you actually use it?
Your wallet is your account for all blockchain apps. Unlike with normal apps, any transactions that you make are stored on the blockchain (a public database) instead of the app's own private database.
Follow this guide to get a wallet.
If it's your first time you will have to submit a proof of ID and proof of address.
You can follow this guide if you need help with buying on Transak.
Go to Compound and 'supply' your ETH. By doing this you are lending the ETH to other users in a fully collateralised loan.
Learn more about how this works here:
That's it! You are officially a DeFi investor! Congrats 🎉
Let's recap what just happened. You created a blockchain wallet and then used Transak to buy ETH tokens directly to that wallet. Those tokens automatically invest you in an app called Compound. It's like a decentralised bank where people lend and borrow assets. It's safe because the money you lend is backed up by collateral from the borrower.
Tasks: