Hey everyone, I hope you all are healthy and safe, which is the most important factor during this crisis. During these challenging times and uncertainty, we all need to start planning financially for our well being! Since nobody knows what the future has to offer (unless you’re from the future), we must learn to adapt and adopt to new financial instruments to grow our wealth.
Technologies, such as blocckchain and FinTech empowers us at our finger tips to access powerful apps on our mobile phones or computer devices to protect and grow our assets. I will show you (in three easy steps) how you can “stake” cryptocurrencies from your Coinbase Wallet using a dApp (decentralized application) called Compound!
If you are a current Coinbase user and have been purchasing cryptocurrencies and not utilizing them, then why not put them to work and earn interest?
First, create a Coinbase account if you haven’t already (takes a couple minutes), then download and install the Coinbase Wallet to integrate the two. Once setup and configured, you will be able to connect both apps to transfer and integrate many features with a couple of clicks.
Linking your Coinbase account within your wallet will provide you with all the access and tools to harness the power of DeFi (decentralized finance) and benefits of other future dApps. Under the “Settings” table, click the WalletLink “Connections” to link your Coinbase account. You’ll need to authenticate and upon success, you will be able to interact between your Coinbase account and wallet freely!
Next, launch the Compound dApp from the tab (see first screenshot) to familiarize yourself with the environment. The first thing you need to review and identify are the cryptocurrencies available. Also, you’ll notice not only can you supply assets to earn (stake), but you can borrow (take collateral) in order to take a loan and spend the funds however you need with low interest!
In this example, I will fund Basic Attention tokens (BAT) to earn interest on the assets. I simple click to load the menu and choose if I am supplying or withdrawing. Depending on the action you take, you’ll need to confirm the transaction and pay a small gas fee (the dApp runs on Ethereum and will use the current asset as a fee if applicable if you don’t have ETH) to execute.
When the transaction is completed (takes a few minutes), you’ll be able to view your balances and see the interest in real-time as they appreciate!
This is a powerful tool that empowers the individual to quickly have access to their money without banks or other 3rd party intermediaries that continue nickle and dimming as along the way. As the blockchain and cryptocurrency space matures, especially with FinTech; the world is going to realize how economics and finance can be leveraged by anyone and anywhere!
Please leave a comment below if you have any comments and questions.
Enjoy taking back your financial freedom!