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How to invest in bitcoin and cryptocurrencies? Despite the volatility, cryptocurrency is considered one of the most popular types of investments, and thanks to its rapid growth, many investors have a chance to make good money. The value of cryptocurrencies like Bitcoin and Ethereum can fall and then rise again. Thus, experienced investors and traders speculate on the value of cryptocurrencies and make high profits, but what if you are a beginner and you do not have enough experience in the crypto market? In this article, we will tell you in detail how to invest in cryptocurrency and what you need to pay attention to. What is a cryptocurrency? Cryptocurrency is digital coins that are created and transferred using cryptographic methods. This type of currency is developed mainly on blockchain technology. Blockchain is a decentralized database that is simultaneously stored on various computers connected to each other on the Internet. Digital coins are issued by performing mathematical calculations. In other words, a cryptocurrency is an analog of real money, which has an official rate. Types of cryptocurrencies All digital coins can be divided into different categories. Bitcoin is the first digital coin, so it is separated from other digital coins. The remaining blockchain projects are divided into several types. Let’s take a closer look at each. Altcoins Altcoins are a type of cryptocurrency that operates on its own blockchain and was developed as an alternative to Bitcoin. The first altcoins were issued in 2011. The purpose of creating such digital coins was to eliminate such disadvantages of bitcoin as long transactions, lack of anonymity, expensive mining, and much more. Among the most popular altcoins can be highlighted the following: Ethereum, Litecoin, Dash, Ripple, etc. Tokens Tokens are digital assets that, unlike bitcoins and altcoins, do not have their own blockchain. Thus, the tokens function on the blockchains of other digital coins, such as Ethereum or Tron. Companies issue such coins to raise funds for the development of their projects or to ensure the performance of their products. For investors, this is a guarantee that the company will fulfill its obligations to them. Stablecoins Stablecoins are digital coins whose value is pegged to real money, gold, oil, etc. The rate of BTC and other cryptocurrencies can change within an hour, day, week, or month. The cost of stablecoins, on the contrary, is extremely stable. There may be fluctuations in the value of this coin, but they are insignificant compared to other cryptocurrencies. Stablecoins are suitable for those who intend to invest in digital assets with minimal risk. NFT NFT – this abbreviation stands for a non-fungible token or it is also called a unique token. This token cannot be replaced, counterfeited, or exchanged. Owing to blockchain technology, the owner of such a token has the right to own this unique asset. Any object can become a non-fungible token, for example, works of art, music, a computer game, etc. NFTs are especially popular in the collector community. The most promising cryptocurrencies to invest in 2022 Bitcoin (BTC) Ethereum (ETH) Cosmos (ATOM) Solana (SOL) Polkadot (DOT) Binance (BNB) Cardano (ADA) Fundamental and technical analysis Before investing in cryptocurrency, every investor needs to study the market well. This will help you avoid certain risks and invest in the right asset. In this case, investors need to conduct technical or fundamental analysis. Any investment decision requires deep analysis as you need to understand the state of the market and which digital asset to invest in. The type of analysis depends on the type of investment in cryptocurrency. For example, if you are going to buy and hold a coin for some time, you do not need information about short-term and medium-term changes in the value of the asset. Therefore, in this case, you need to use fundamental analysis. With the help of fundamental analysis (FA), investors can assess the potential of an asset based on the project as a whole, including its utility, team, white paper, development, marketing, management, reputation, long-term goals, and other factors. Technical analysis (TA) allows studying of the previous data on prices and trading volumes, thus the investor receives information about the future price movement. All of this data can be obtained using candlestick charts and TA indicators such as moving averages and trend lines. What should you know before investing in cryptocurrency? If an investor invests his funds, he must study in detail the digital asset in which he is going to invest. When choosing a digital asset, it is important to understand its perspective and how reliable this digital asset is. Today there are a huge number of digital coins, however, if you are still new to the cryptocurrency market, you are better to invest in a cryptocurrency that has established itself as a reliable asset and has been on the market for a long time. To obtain a stable income, crypto investors need to pay attention to the following factors before investing their funds in a particular asset: White Paper. Before investing in a digital asset, it is necessary to check if there is a white paper on the development of the cryptocurrency, platform, or another asset that is being offered for investment. Team. Here you should pay attention to the developers, whether they are real people, the experience of the team, and the resources that the project has. There are cases when the whole project turns out to be fraudulent, and the whole team is non-existent. Roadmap. It is also very important that the project has its own development plan, which would describe what exactly and when the developers are planning to implement, what actions they will perform to increase the value of their cryptocurrency. Asset volatility. If a digital coin has too high volatility, then, investors shouldn’t invest in such a coin. It is better to choose a less volatile digital asset that has stable growth to avoid possible risks. Technical specification of the project. When choosing a cryptocurrency for investment, it is necessary to

Top 7 promising cryptocurrencies in 2022 Despite the fact that by the end of last year the cost of the main cryptocurrency dropped, 2021 as a whole turned out to be successful for the crypto market. During this time, Bitcoin has grown by 64%. At the same time, the coin set a historical maximum value at $69,000, and the capitalization of the entire sector for the first time exceeded $2 trillion in November. But does this mean that digital assets will continue to grow in value compared to fiat money this year? What dynamics to expect from the crypto market this year, and which crypto to invest in. Bitcoin (BTC) Despite the drawdown of Bitcoin at the end of 2021, this digital coin remains the leader in the world of cryptocurrencies. Bitcoin has existed in the crypto market since 2009 and has already proven its worth. It is one of the reliable cryptos to invest in. It is no longer possible to buy this cryptocurrency at a low price, so any drawdown in the value of BTC can be considered by investors as an opportunity to buy this digital coin at a lower price. BTC is currently valued at $43,914.39, Bitcoin’s market cap is $828,005,485,118, and the trading volume is $27,993,754,952 during 24 hours. Ethereum (ETH) Ethereum is one of the best cryptos to invest in and the second cryptocurrency in terms of capitalization after Bitcoin. The market cap of this digital coin is $377,855,502,904 and the trading volume is $28,207,246,654. Technologically, this cryptocurrency offers a wide range of applications. The main function is to automate the exchange. Ethereum smart contracts allow two parties to make a fast and secure transaction without intermediaries and also limit bureaucracy as much as possible. With this contract, you can both buy real estate and pay for dinner at a restaurant. The creation of new business models and decentralized applications further strengthens the long-term growth potential of this cryptocurrency. It is noted that due to the fundamental nature of the project and the excellent roadmap for 2022, as well as the important update of Ethereum to version 2.0, growth will continue next year. According to experts, the forecast values ​​of the Ethereum cryptocurrency by the end of 2022 could be $8,000–10,000. Cosmos (ATOM) If you want to invest in crypto, Cosmos (ATOM) is considered one of the reasonable solutions. This blockchain is rightfully called “blockchain 3.0”. Cosmos is a cross-chain solution that allows all blockchains launched in the Cosmos ecosystem to interact both with each other and with external networks like Ethereum and Bitcoin. Today, the project is in the top 50, and its capitalization is more than $5 billion. More than 250 decentralized applications have already been launched on the Cosmos network. The capitalization of these applications exceeds $70 billion. Its infrastructure is used by Binance Smart Chain, Qredo, OKExChain. The Cosmos cryptocurrency has no analogs, so it cannot be compared with anything else. The closest exception is Polkadot, which offers the creation of parachains on its own. Experts believe that this ecosystem has excellent growth in the future, as the leading cryptocurrencies are already using this technology offered by the Cosmos project. Until the end of 2022, the price is projected to rise to the range of $40–50.  Solana (SOL) Solana was designed to maintain the DeFi, Dapps as well as smart contracts. Solana runs on a unique hybrid proof of stake (PoS) and proof of history (PoH) protocols that simplify the entire process of transactions and make them fast and secure. SOL is a token that was created to operate on Solana’s platform. The growth in the value of SOL began after participating in the first initial offering of coins (IСO) of the project in 2018. Then, Solana sold almost 80 million tokens. One token cost 4 cents. Now the value of the coin is $117.39. The market cap is $38,010,676,434 and trading volume is $2,500,219,132 for 24 hours. SOL tokens give access to the Solana blockchain, which allows you to create decentralized programs – the so-called Dapps. Solana is faster than its well-known competitor Ethereum. It processes about 3187 transactions per second, and during peak periods – more than 65,000.  Ethereum processes only 15 transactions per second, Bitcoin – five to seven. Solana creates one block of information in the network in 0.4 seconds, Ethereum in 10 seconds, and Bitcoin in 10 minutes. The commission that miners pay depends on the speed of work. Solana has a much lower price – less than one cent per transaction, Ethereum – $25-53, depending on the price of electricity. On Solana’s blockchain, developers built the Audius streaming service, the DeFi Land simulation game, the Saber cryptocurrency exchange, and about 900 other programs. There are almost 3,000 such programs in Ethereum, according to the State of the Dapps tracker. Polkadot (DOT) Polka (DOT) is considered one of the promising cryptos to invest in 2022. It became popular due to providing different solutions to investors by using several blockchains from a single network efficiently. It is estimated that crypto investors can obtain higher returns from Polkadot as a huge number of experts believe that with the consistent launch of parachains, the value of the Polkadot cryptocurrency will increase significantly. An achievable target for 2022 is a price range of $40-60. The cost of DOT is $22.73, its market capitalization – $22,536,546,667 and the trading volume – $1,529,062,811 during 24 hours. Binance (BNB) Binance Coin is used worldwide and is developed for minimizing trading fees and providing its users with fast and safe transactions. Many experts predict that users who purchase this token now, will receive a huge profit as the price of the coin can reach $1000 in 2022. Binance is a popular cryptocurrency exchange where Binance Coin is designed to pay fees for its services. The market cap of BNB is $70,972,186,832. Its price was just $0.10 in 2017. It grew to $428.63 on February 9, 2022. So, if you want to invest

What is VeChain(VET)? VeChain is a project that provides blockchain solutions to various companies. It allows companies to develop and run decentralized applications to ensure the quality and authenticity of their products. Therefore, VeChain’s goal is to ensure better electronic consensus involving enterprises by providing them with new tools for efficient data transfer and supply chain management. This fact helps eliminate fakes and counterfeit products. Let’s take a closer look at what VeChain is and how it works. What is VeChain? VeChain is a blockchain-based governance platform. It digitizes real people, products, or events by linking the API to the application layer of the system, connecting the blockchain with real information. The project focuses on supply chain management and combating the counterfeiting of luxury goods by recording components in a tamper-proof distributed ledger.  VeChain is based on smart contracts focused on real production operations.  Thus, VeChain is creating a completely new and fair business model that provides reliable services to all customers and companies. History of creation and team Work on the VeChain project started in 2015, and the official release came in June 2016. The creator of VeChain is Sunny Lu, who previously served as CIO of Louis Vuitton China. Sunny Lu is well-known in the cryptocurrency industry, owing largely to bringing attention to the ability of blockchain technology to solve the problem of transparency. The second co-founder of VeChain is Jay Zhang. He leads the global corporate structure, management, and finance of the project. Zhang previously worked for companies such as Deloitte and PriceWaterhouseCoopers in finance and risk management. VeChain was originally aimed at the development of the logistics supply chain, but over time it has evolved into a full-fledged platform for dApps (decentralized applications). Nowadays, VeChain is one of the oldest blockchain platforms providing logistics services. How does VeChain (VET) work? VeChain runs on its own public blockchain that is called  VeChainThor.  The VeChainThor blockchain operates like other blockchain platforms that focus on business. Companies use VeChain’s full-featured Blockchain-as-a-Service (BaaS) product referred to as ToolChain to build their blockchain solutions. VeChainThor also supports smart contracts. Each transaction on the VeChainThor blockchain can perform multiple tasks. In addition, VeChain’s users do not need to hold a cryptocurrency to complete transactions. It is held by the owners of the application to make the user experience even more convenient. The VeChainThor blockchain utilizes Proof of Authority (PoA) consensus which transfers the power to certain nodes on the blockchain to validate transactions. This means that it only transmits transaction blocks via governance masternodes, which must hold at least 25,000,000 VET. What are VET and VTHO? VET and VTHO are the own tokens of VeChain. VET (VeChain Token) is intended for financial transactions on the VeChainThor blockchain as well as for market speculation. VTHO (VeThor Token) is an “energy token” that is designed to carry out transactions on the VeChainThor blockchain. VET holders can create VTHO for utilization on the VeChainThor blockchain. How to store VeChain (VET)? You can store VET and VTHO, as well as several other crypto assets, in the official VeChainThor wallet on iOS or Android. The company also offers a VeChain Sync desktop wallet that can be used with Ledger for cold storage. In addition, VET and VTHO can be stored in the following wallets: Trust Wallet, Ellipal, Atomic Wallet, MySafeWallet, Cobo Wallet, Arkane Wallet, Guarda Wallet, and Exodus. In what areas can VeChain(VET) be used? Let’s take a look at some of the most common use cases for VeChain technology. Although, this is not a list. More examples can be found in the Dapps VechainWorld library. Food safety Blockchain-based solutions can result in a more transparent food economy worldwide. Internet of Things (IoT) devices with VeChain support can be deployed across the supply chain – products, vehicles, etc. Then, the environment and location data from these devices are downloaded, verified, and stored in a decentralized manner on the VeChainThor blockchain. Similar solutions are already in place at several companies, including Shenzhen Yuhongtai Foods. Fight against counterfeit products Counterfeits are a major problem in the luxury goods market. Owners can be assured of the authenticity of items due to using the encrypted chip along with the chip to register and track logistics, warehousing, maintenance, and resale. This method has already been used to track expensive wines for Shanghai Waigaoqiao Direct Imported Goods, as well as parts of Renault cars as part of testing. Health records Existing health records systems are outdated. Instead of using inefficient and insecure systems for recording lab results, this data can be stored on the blockchain and only patients and authorized individuals can access it.  Tracking carbon emissions This solution allows customers to participate in reducing carbon emissions into the atmosphere.  If smart devices such as cars or appliances detect that the owner emits less carbon, they can be rewarded for use in energy services. BYD, a Chinese electric vehicle brand, is already using this Vechain solution. What big companies use VeChain? Here is a list of companies that have already used the  VeChain solution: Bayer China, Shanghai Gas, BYD Auto, PICC, H&M Group, BMW, LVMH, Walmart China, FoodGates, Reebonz, etc. Conclusion VeChain is a highly ambitious company with an already strong presence in the Chinese market. Due to the projects for large companies that have switched to the VeChainThor blockchain, the company has proven the effectiveness of its products in creating blockchain applications. READ MORE: How to short crypto 2022?

Cryptocurrency trading has become so popular that developers decide to simplify the trading process by creating different tools for algorithmic trading. Thus, traders who even have no experience can get income from this type of activity. One of the best algorithmic trading tools is considered crypto signals. The aim of this function is to make crypto trading more effective and help traders enter the trades while minimizing risk.

Cryptocurrency trading has become so popular that developers decide to simplify the trading process by creating different tools for algorithmic trading. Thus, traders who even have no experience can get income from this type of activity. One of the best algorithmic trading tools is considered crypto signals. The aim of this function is to make crypto trading more effective and help traders enter the trades while minimizing risk.

Cryptocurrency trading has become so popular that developers decide to simplify the trading process by creating different tools for algorithmic trading. Thus, traders who even have no experience can get income from this type of activity. One of the best algorithmic trading tools is considered crypto signals. The aim of this function is to make crypto trading more effective and help traders enter the trades while minimizing risk.

Cryptocurrency trading has become so popular that developers decide to simplify the trading process by creating different tools for algorithmic trading. Thus, traders who even have no experience can get income from this type of activity. One of the best algorithmic trading tools is considered crypto signals. The aim of this function is to make crypto trading more effective and help traders enter the trades while minimizing risk.

What is PancakeSwap? PancakeSwap is a decentralized cryptocurrency exchange (DEX) that is developed on the Binance Smart Chain (BSC) and is designed for exchange, Yield Farming using digital assets of the BEP-20 standard. This platform acts as an alternative to exchanges that operate on the Ethereum blockchain. Unlike crypto exchanges that are based on the Ethereum blockchain, PancakeSwap provides users with faster transactions and lower fees.  In order to service trading operations, the exchange uses an automated market maker (AMM) model. This means that PancakeSwap lacks the order book that most cryptocurrency exchanges have. Instead, trading on this exchange is carried out using a liquidity pool that is filled with user funds. In return, they receive a reward in the form of liquidity provider (LP) tokens, which are designed to profit from trading fees, farming, and other types of cryptocurrency trading.  The exchange has its own internal CAKE token, which bears similarities to Uniswap and SushiSwap. With this token, users can pay fees and receive rewards from the exchange. History of the creation of PancakeSwap The platform was launched on 20 September 2020, with the support of Binance. The founders of the project are still unknown. In February 2021, PancakeSwap became one of the largest crypto exchanges in the DeFi sector in terms of trading volume. In March 2021, it surpassed the Uniswap trading exchange by more than $1 billion on the total number of coins locked (TVL).  According to Coinmarketcap, PancakeSwap is ranked 2nd in terms of trading volume, which is $988,680,276. How to use PancakeSwap? In order to start using the exchange, you should connect a Web3 wallet. To do this, the user needs to follow these steps:   Go to the official website of PancakeSwap. Press the Connect icon. Then, a drop-down menu will open, where you will have to select one of the crypto wallets. Currently, the following wallets are available on the PancakeSwap exchange: TokenPocket, MetaMask, MathWallet, Binance Chain Wallet, TrustWallet, SafePal Wallet, WalletConnect, and Coin98 Wallet. After you select the wallet, another window will appear where it is necessary to confirm authorization. What features does PancakeSwap provide? PancakeSwap exchange allows its users to make a profit using various tools and ways of earning money. Let’s take a closer look at each of them. Exchange. To purchase and trade digital coins on the platform, you need to use BNB. These tokens can be purchased on PancakeSwap or Binance, and then transferred to your crypto wallet. You can start trading digital coins on the exchange in the Trade section of the Exchange tab. There are more than 1000 crypto trading pairs available on the PancakeSwap exchange.  It is worth noting that when trading tokens, traders should pay 0.25% fees per transaction. These fees are distributed in the following manner: 0.03% is intended to grow the fund, 0.17% is divided among liquidity providers, and 0.05% is burned.  Liquidity. In the Trade section, you can also get LP tokens and become a liquidity provider. In this case, you need to click on the Trade button, and then Liquidity and Add Liquidity. When the window appears, you must select two digital coins to fund the corresponding liquidity pool. But before that, it is recommended to study what Impermanent Loss is to be aware of the potential risks. Farms. Farms on PancakeSwap are liquidity pools through which exchange and trading operations are carried out. In order to start making money on farming, users need to purchase LP tokens. These tokens can be invested in one of the farms to get a percentage of income. To start farming, the user must go to the Farms section and select the farm that corresponds to his LP tokens in the Liquidity section. For example, if you have selected CAKE-BNB LP trading pairs, then you need to select the CAKE-BNB farm. After completing these steps, you will be able to start the yield farming and receive rewards in the CAKE token. It is possible to get this token whenever by clicking the Harvest button.  Pools. In this section, users have an opportunity to invest CAKE in syrup pools and in a manner to receive staking income. The staking reward will be the cryptocurrency of the project, in the pool of which you will invest your funds. For example, if you invest in the Earn SPS pool, you will receive the SPS digital asset accordingly. Users can get the reward after paying the transaction fee. Prediction. You can use this feature in the beta version. It allows receiving income by predicting the BNB / USDT rate. In practice, this type of earnings is analogous to binary options with a round of 5 minutes. Predictions are a very risky investment since it is quite difficult to accurately predict the future value of a digital asset in such a short period. Before placing a bet, the user must carefully study the rules and instructions. Lottery. The PancakeSwap also allows its users to earn money by participating in the lottery, which takes place every 6 hours. If you want to participate in it, then you need to go to the Lottery section and purchase a ticket for 10 CAKE tokens. Then, you will receive a combination of four random numbers from 1 to 14. In order to win the jackpot (50% of the whole lottery pool), all 4 numbers on your lottery ticket must match four numbers in the same sequence as in the winning ticket.  If you only match 3 or 2 numbers, you will also receive a reward:  You will receive a reward if you can match the following numbers: 4 numbers in exact order (get a prize or divide 50% of the pot if there are several winners). 3 numbers in exact order (get a prize or divide 20% of the pot if there are several winners). 2 numbers in exact order (get a prize or divide 10% of the pot if there are several winners). Please note: if none of the participants can

What is NFT? NFT is a fairly new phenomenon that has made a splash in the cryptocurrency world and often appears in news headlines. In 2021, the Hermitage was planning to hold an exhibition of NFT collections. Prior to that, Twitter co-founder Jack Dorsey managed to sell his first NFT tweet for $2.9 million, and artist Mike Winkelmann sold his NFT picture for a record $69 million. Let’s see what does NFT stand for and why is everyone talking about it?  An NFT or non-fungible token is a unique digital item whose originality can be proven using blockchain technology. Each NFT token is authentic. Unlike bitcoin, which is divided into satoshi, non-fungible tokens cannot be faked or replaced with another coin of the same value. Usually, you can buy or sell NFT through the Ethereum blockchain cryptocurrency. Like other tokens, NFTs are also created on the blockchain system, which is the database storing all transaction information. The blockchain is responsible for the uniqueness of non-fungible tokens. In other words, any user can check the origin and history of a specific NFT token through blockchain technology. When buying an NFT token, the user purchases a certificate for the work. In this case, the work itself is stored in IPFS. This certificate is a line of code that proves the owner of the original digital artwork. NFTs are created and issued based on the ERC-20 standard, as well as ERC-223, ERC-721, ERC-777, and ERC-1155. Each new standard improves, becomes faster and safer to use, and also allows users to utilize new functions. History of the creation of NFT Work on the development of NFT tokens has been carried out since 2010. In 2012, there were experiments with Colored Coins. Colored Coins are the base units of bitcoins that were used as coupons, company assets, access tokens, or just collectibles. In 2017, NFT smart contracts were created on the Ethereum blockchain, and the first NFT projects were presented, including the CryptoPunks pixel art. What can become an NFT token? Almost any digital item can become an NFT token. This can be a picture, music, photography, animated GIF, movie, and various virtual game items. Such digital artworks are unique and exist in a single copy, therefore they are valuable for collectors.  How does NFT work? NFT can work on the Ethereum, Harmony ONE, Polygon, Solana, BNB Smart Chain, Near, Tron, Cardano, PolkaDot blockchains, and many others. All the necessary information of NFT is stored in the blockchain. With this information, these tokens can take the form of images, music, videos, and other digital items that users save in JPEG, MP3, or GIF format. Like any kind of art, NFT has value. Therefore, the people who purchase these tokens can resell them at a higher price and receive financial gain. NFT price depends on the demand of the user and the market. As with any other art market, you can find copies of NFT. But they don’t have value. For example, if you find a sold NFT picture on the net and decide just to save a JPG image to the disk, it will not allow you to become the owner of that digital item. Since this type of file will not contain information that you are the owner of this token. You can only become the owner of an NFT token if you buy this token on one of the special NFT art marketplaces. Where can people buy NFT? Among NFT collectors, the OpenSea site is most in demand. On the site, users can purchase rights to real estate, a domain name, some collectibles, programs, and even crypto cats. Transactions are carried out in digital coins using the MetaMask crypto wallet. Also, there are other sites. For example, one of these sites is SuperRare, where you can buy the most expensive and original digital artwork.   Among the active platforms, in turn, one can single out Rarible, which is aimed at fans of virtual art. On this platform, you can purchase digital artworks from over 20,000 creators. If one of the users has a desire to create virtual artwork on their own, they can use the Async Art platform.  We can also note the Nifty Gateway site, which is currently gaining popularity and is considered one of the most promising for the sale of NFT. The owners of this platform are representatives of the well-known crypto exchange Gemini. In addition to all of the above trading platforms, users can also purchase NFT collections directly on the websites of the developers of these projects. The Best NFT collections According to CoinMarketCap, the top 10 best NFT collections include the following projects: Advantages and Disadvantages of NFT  Advantage The most important advantage of NFT is the tokenization of various types of tangible and intangible assets. This token is non-fungible and safe thanks to the blockchain. It is blockchain technologies that guarantee the owners of NFT tokens the right to own unique assets, including their sale for fiat money. Users have the ability to create an NFT by themselves, reliably linking it to a unique item. The use of this type of token is absolutely safe since the personal data of their owners are reliably protected. Thus, users can digitize any important information. It is also worth noting that copyright remains with the creator. Disadvantages  As for the shortcomings, the following points can be highlighted:  Risk of buying a digital item that is not valuable. Low liquidity of collectible items. The high threshold to enter the market, as the initial cost of these digital art collections can be started at thousands and millions of dollars. What’s coming next for NFT?  At the moment, it is very difficult to predict the future of NFT, since it appeared relatively recently. However, it is safe to say that NFTs are spreading rather quickly in various spheres of activity, including the gaming industry. Social networks are also interested in NFT technology. There was news recently that Instagram is looking at the

What is Yearn.Finance (YFI) in DeFi and how does it work? Today, digital currencies and various blockchain projects are becoming more and more popular among users. One such project is Yearn.Finance that better known as YFI. Yearn.Finance is one of the ERC-20 tokens that cost approximately $20,226. Despite the fact that the project was launched relatively recently, it is in great demand. The high cost of the token also speaks of its popularity. Let’s take a look at what Yearn.Finance is and why this project is attracting the attention of investors. What is Yearn.Finance? Yearn.Finance is a protocol that runs on the Ethereum blockchain and is designed to use decentralized financial services (DeFi), including lending, interest earnings, and trading. The goal of the decentralized ecosystem of the platform is to maximize the invested funds of investors due to the fact that the main protocol of the ecosystem automatically moves investors’ digital coins between credit pools (Dydx, Aave, Compound). Yearn is currently considered one of the most sought-after decentralized projects in the DeFi world. YFI is an internal token of Yearn.Finance that has a self-contained protocol. This means that investors can vote on the platform for the protocol direction that best suits their goals. Today, the YFI crypto is one of the largest digital assets based on the Ethereum blockchain, the priority of which is yield farming. The History of creation of Yearn.Finance Yearn.Finance was created by Andre Cronje in 2020 and was a protocol based on Ethereum. The purpose of this protocol was to give users the opportunity to increase profits from deposits of ether, stablecoins, and altcoins. Andre Cronje is a South African IT developer of financial technology who made the decision to develop the Yearn.Finance platform after noticing a mismatch in the yield of different DeFi applications. It was hacked, soon after the protocol was launched. Then, it was significantly improved to provide users with the opportunity to use new, more quality products of the platform. Yearn.Finance Products Yearn.Finance is considered one of the fastest-growing DeFi projects that uses only code to deliver their services, completely eliminating the need for intermediaries like a bank. To that end, an automated reward system was created on the platform, which is based on the own cryptocurrency of the YFI platform. Yearn.Finance platform includes several products: APY is a data table that shows interest rates for different lending protocols. Earn – provides information to users about the highest interest rates they can earn by borrowing a digital asset. To do this, it interacts with protocols such as Compound, Dydx, Aave and allows users to receive passive income from stablecoins (sUSD, USDT, DAI, USDC, TUSD) and wBTC. Vaults are a series of investment strategies that are used to maximize profits from other DeFi projects. Zap – provides users with the ability to make multiple investments with a single click of the computer mouse, saves the user time, and minimizes opportunity costs and transaction fees. Basically, all these Yearn.Finance’s services were developed so that users can borrow a coin or use their funds in trading. Thus, the project made investing in DeFi and yield farming more accessible to users. How does Yearn.Finance work? As we mentioned above, Yearn.Finance operates through the autonomous movement of investors’ funds to the most profitable projects. That is, it finds the protocol that offers the best Annual Percentage Return (APR). This platform is considered a very profitable solution in the DeFi sector, as it allows its users to generate high income by blocking ERC-20 stablecoins (USDT, DAI, USDC, TUSD, or SUSD) in the protocol. In return, investors receive an equal amount of yToken. Thus, the YFI coin is no different from any other ERC-20 digital asset from a technical point of view. The Yearn.Finance platform automatically switches deposited digital assets to the protocol with the highest profitability to maximize investor returns. Unlike other tokens, YFI has better automation and flexibility that has never been seen in blockchain before. Another notable advantage of using Yearn.Finance is that the network collects a small fee that was contributed to the platform’s pool. Then, it is distributed among holders of YFI token as dividends. Where can you buy a YFI token? There are various ways to purchase YFI crypto. Let’s take a closer look at each of them: One of the easiest ways to get a YFI token is by purchasing it on exchanges such as Binance, OKEx, FTX, Huobi Global, and LocalTrade. The next way is to put the yCRV token into the yGov pool. This strategy is considered one of the easiest and fastest. More advanced users can obtain a YFI token by depositing tokens in the balancer protocol in exchange for digital assets BPT or BAL, and then depositing these tokens in yGov in exchange for YFI. How can you purchase Yearn.Finance through the Cryptorobotics platform? If you want to buy YFI through the Cryptorobotics trading terminal, you need to follow these steps: Go to the trading terminal. Go through the registration process. Create an account on one of the available crypto exchanges in the terminal. Link your account to the Cryptorobotics terminal (you can find all detailed instructions here). After you complete this procedure, you can buy YFI. Is it worth buying Yearn.Finance in 2022? Despite the popularity and all the advantages of the project, investing in a management token carries certain risks, since Yearn.Finance price has shown both a sharp rise and a rapid decline. On the other hand, this fact also makes this cryptocurrency interesting for traders who can use various strategies in their trading. In the long term, Yearn.Finance may become a profitable investment for investors if the project continues to gain popularity. READ MORE: How to create passive income using crypto trading bots in 2022?