Blockchain Technology: How to Optimize its Benefits

We are in a new financial era where people no longer need to go to banks to get financial services. In its place, blockchain technology is rapidly taking over to ensure that no matter where or who you are, you can easily access banking services. 

Today, people are making their lives better by using decentralized finance (DeFi) platforms for sending money and other finance-related services. Can you imagine being able to access loans within minutes without any background checks or filling dozens of applications? That is now possible with blockchain-based services.

This post digs deeper into blockchain technology to demonstrate how it works and strategies you can use to optimize the benefits. Why stick to the brick-and-mortar/ traditional banking system when DeFi platforms have all that you need?

Understand How Blockchain Works 

 

 

To optimize the benefits of blockchain technology, it is crucial to have some basics of how it works. Blockchain is a decentralized public ledger used to store information about transactions in the respective networks. Instead of having a centralized system of management like a traditional bank, transactions on the public ledger are confirmed by nodes (users) on the platform. These nodes also help to forge new blocks that are added to the fast-growing blockchain.

There are two other important things that you need to have: a crypto wallet and crypto coins. Crypto coins are the native currencies that drive blockchain networks. For example, ETH is the native coin for the Ethereum blockchain. For you to access any service or optimize related benefits, you must have some crypto coins.

On the other hand, crypto wallets are services, devices, or programs for storing your coins. They make it possible for you to hold, send, or trade crypto coins safely. You can opt for hot/online wallets, cold wallets, or desktop wallets.

How to Optimize Benefits of Blockchain Services 

 

There are so many things that you can do with crypto coins through the decentralized finance (DeFi) platform. Here are some of them and how to optimize the resultant benefits.

●        Buy Cryptocurrencies and Wait for their Value to Grow

This is a common strategy that people use, and it can result in a huge growth of your investment. For example, if you bought just one BTC in 2009 when it was worth less than a dollar and held it to the start of December 2021, the value would have risen to about USD 47,000. However, this method requires you to be focused on long-term growth.

●        Use Crypto Staking to Generate Passive Income

If you have some crypto coins, especially those based on the proof-of-stake (POS) consensus protocol, it is possible to stake them and earn rewards. Staking is the process of locking your coins in their respective networks to help with confirming transactions. In return, you are rewarded with part of the transaction fees paid by users on the network. Note that you are not selling your coins because they are returned to your wallet at the end of the staking period.

●        Trade Cryptocurrencies

Like forex, you can also trade crypto coins and rake in some rewards. If you are able to predict the price movement of the crypto coins, it is possible to optimize the returns. Fundamental trading, which predicts the price movement of crypto coins after major news, can be an excellent method to grow your profits.

These are only a few of the methods that you can use to optimize the benefits of crypto coins. Others include using crypto coins to send value and crypto lending as opposed to traditional banks. To enjoy all of these financial services and take advantage of the emerging blockchain-based services, visit hi.com. They have a lot more, and you will even earn rewards for signing up. 

Coin Shark is not responsible for any content, accuracy, quality, advertising, products or other content posted on the site. The review is for informational purposes only, reflects only the opinion of the author and does not constitute a proposal for action. The financial market is dangerous and full of risks, investments in cryptocurrencies can lead to losses. Users should conduct their own research before taking any action.

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