Cryptocurrency: DeFi, Farming, and Staking Megathread

Chee-to

Michael Peterson status
Jan 11, 2002
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Should be more insulated, but is it ? If I may add sir 100 x leverage trading has not been around forever. No one questioned Madoff paying 12 percent a year but hey thats what makes markets.
It has been around in crypto for a good 5+ years, which is basically forever in this space.

Look, here's the deal. Let's say leveraged speculation wipes the market out and it drops another 50% like it did in May. What happens to the value of the stablecoins you're holding? Nothing. Some algo stables might lose peg temporarily - UST dropped to 94 cents in May before reverting - but the backed deposit stables like USDC won't.

The lending protocols I'm referring to are overcollateralized, not undercollateralized. Cascading liquidations won't sink them.
 
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tsenn

Billy Hamilton status
Feb 11, 2004
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Getting Started - Wallets and Wallet Clients.

To get started, you need a method of getting fiat into crypto and wallets on the chains you want to use. For Americans, I suggest Coinbase Pro as a fiat onramp. For everybody, I suggest a Ledger hardware wallet [https://www.ledger.com/] to interact with the wallet clients. Buy two and back them up with the same seed phrase. Buy them ONLY from Ledger directly and ONLY new.

Ledger is a hardware wallet that holds your seed phrases (account codes) and signs transactions for you. To use Ledger, you need to connect it to a wallet client on each chain.

You can use the wallet clients directly without a hardware wallet, but it is not as secure. If you do this, you will need to back up the wallet client's seed phrase instead of the Ledger's.

There are several wallet clients for each chain, but here are my recommendations based on use.

Wallet Clients

All EVM Chains (ETH, BSC, MATIC, etc.) - Metamask https://metamask.io/
Solana - Phantom https://phantom.app/
Terra - Terra Station (not great, but I haven't seen a better option yet) https://station.terra.money/wallet
Tezos - Temple https://templewallet.com/

Download the browser extensions for each wallet. Plug in your Ledger, hit connect hardware wallet, and you have access to your hardware wallet addresses through the wallet client extension. For EVM chains, you will need to look up how to add the specific chain in Metamask for all the non-ETH chains. It's easy to do and find.
I'm on Coinbase, do I need Con
Getting Started - Wallets and Wallet Clients.

To get started, you need a method of getting fiat into crypto and wallets on the chains you want to use. For Americans, I suggest Coinbase Pro as a fiat onramp. For everybody, I suggest a Ledger hardware wallet [https://www.ledger.com/] to interact with the wallet clients. Buy two and back them up with the same seed phrase. Buy them ONLY from Ledger directly and ONLY new.

Ledger is a hardware wallet that holds your seed phrases (account codes) and signs transactions for you. To use Ledger, you need to connect it to a wallet client on each chain.

You can use the wallet clients directly without a hardware wallet, but it is not as secure. If you do this, you will need to back up the wallet client's seed phrase instead of the Ledger's.

There are several wallet clients for each chain, but here are my recommendations based on use.

Wallet Clients

All EVM Chains (ETH, BSC, MATIC, etc.) - Metamask https://metamask.io/
Solana - Phantom https://phantom.app/
Terra - Terra Station (not great, but I haven't seen a better option yet) https://station.terra.money/wallet
Tezos - Temple https://templewallet.com/

Download the browser extensions for each wallet. Plug in your Ledger, hit connect hardware wallet, and you have access to your hardware wallet addresses through the wallet client extension. For EVM chains, you will need to look up how to add the specific chain in Metamask for all the non-ETH chains. It's easy to do and find.
Difference between coinbase, and coinbase pro? Do I need to go pro? thanks
 

r32

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Apr 1, 2005
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I'm on Coinbase, do I need Con

Difference between coinbase, and coinbase pro? Do I need to go pro? thanks
Coinbase = plebs; high fees; e-commerce style shopping and checkout

Coinbase Pro = plebs who want to be pros; less high fees; manual / automated trading

Coinbase Prime = where the pros play; businesses, institutions (banks, hedge funds, etc.), and whales

Coinbase and Cb Pro uses same login and account. So you can use either one. Cb Prime you have to fill out an application and submit for approval.
 

Chee-to

Michael Peterson status
Jan 11, 2002
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I'm on Coinbase, do I need Con

Difference between coinbase, and coinbase pro? Do I need to go pro? thanks
You want to use Pro 100% of the time. Like r32 said, it's included in your regular Coinbase account.

And you can be a pretty high-rolling plebe on CB Pro. It's pretty easy to get six-figure daily ACH deposit/withdrawal limits. That's still the shallow end in the crypto world, but it's real money to some of us.
 
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Subway

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Dec 31, 2008
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Yeah I need to use pro. I’m not making 5 figure trades or Even have a five figure crypto portfolio but I have been taking a more active recreational interest in trading crypto and the fees are adding Up

plus don’t you get access to a lot more coins on pro?
 

r32

Administrator
Staff member
Apr 1, 2005
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Yeah I need to use pro. I’m not making 5 figure trades or Even have a five figure crypto portfolio but I have been taking a more active recreational interest in trading crypto and the fees are adding Up

plus don’t you get access to a lot more coins on pro?
Same coins on pro as coinbase, usually. But the coins typically get listed on Pro/Prime first. Then Coinbase adds those same coins to regular coinbase a few days or weeks later.

Not all coins are available for trading in all States, since each State has it's own financial rules. NY is especially stringent.
 

afoaf

Duke status
Jun 25, 2008
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You want to use Pro 100% of the time. Like r32 said, it's included in your regular Coinbase account.

And you can be a pretty high-rolling plebe on CB Pro. It's pretty easy to get six-figure daily ACH deposit/withdrawal limits. That's still the shallow end in the crypto world, but it's real money to some of us.
why are you moving in/out at that volume?

transferring between exchanges...or getting out to put it in elsewhere?
 

donger

Billy Hamilton status
Nov 17, 2012
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I guess I'm too old to understand any of this stuff...can you just tell us where to put the money?
 
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Chee-to

Michael Peterson status
Jan 11, 2002
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I guess I'm too old to understand any of this stuff...can you just tell us where to put the money?
I did. Go read the steps about what to buy and install in the first post and I'll walk you through the rest once you've done that.
 
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grapedrink

Duke status
May 21, 2011
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What about just buying UsDC in Crypto dot com or one of the higher yielding coins and colllecting 12-14%? Not as lucrative but probably less complicated and safer because I don’t have to worry about storing/remember a complicated password? :computer:
 
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Chee-to

Michael Peterson status
Jan 11, 2002
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What about just buying UsDC in Crypto dot com or one of the higher yielding coins and colllecting 12-14%? Not as lucrative but probably less complicated and safer because I don’t have to worry about storing/remember a complicated password? :computer:
1. Crypto.com's wallet has the exact same issue with needing to store/remember a seed phrase.
2. Higher interest rates are only on locked term staking products - 30 or 90 day vaults. For flexible vaults that can be withdrawn at any time, it's only offering 8%.
3. Crypto.com is just sticking the money in these Defi vaults and pocketing the difference. Might as well cut the middleman.
 

lruc

OTF status
Nov 10, 2016
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Chee, great conversation , BUT , I look at this in a cynical logical view. Lending crypto into defi and borrowing them back is inflating the product. The whales whom reap the early rewards create artificial demand while inflating the price, classic manipulation . Your point of a selloff last spring wiped out 500,000 accounts out of a million, sure leverage spoke the death spiral but the holdrs can dictate a trend . Defi funds the game , they aint getting those returns with traditional lending.
 

tsenn

Billy Hamilton status
Feb 11, 2004
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Okay, the Ledger is a drive that just holds the seed phrase? Do I need a hardware wallet as opposed to a software wallet? Just more secure having a physical wallet I suppose...? (Please tell me there are no stupid questions teacher...) Thanks!
 
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grapedrink

Duke status
May 21, 2011
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1. Crypto.com's wallet has the exact same issue with needing to store/remember a seed phrase.
Does it? I use a simple 6 digit passcode and face ID to open it on my phone and I definitely did not set up a pass phrase.

Crypto.com is just sticking the money in these Defi vaults and pocketing the difference. Might as well cut the middleman.
I guess I'm willing to sacrifice a few % points if I know that I can access my account with a complicated phrase/passcode, but maybe it's no different :shrug:

I'm probably missing something so I appreciate your patience with these questions :beer:
 

WindowLicker

Nep status
Aug 4, 2021
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I’m looking to build a crypto mining rig but it seems all the fat nerds have bought up all of the graphics cards.
 

PJ

Gerry Lopez status
Jan 27, 2002
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I’m looking to build a crypto mining rig but it seems all the fat nerds have bought up all of the graphics cards.
No No No No No - I shorted Nvidea - NVDDA about two weeks ago on the advice of a service I pay for - there's supposed to be a less processer intensive way to calculate Crypto and those fat nerds are supposed to buy a lot less graphics cars - but NVDA went up 26% so I'm down 26% on my short :socrazy::socrazy: plus interest:foreheadslap:

Oh and thanks Che - thanks for putting up all this info - I've been seeing a lot of Crypto stuff on investment services I pay for and was just ignoring it. But I did recently see something about investing in Crypto clearing houses - might be the wrong phrase but the companies that own the code that manages all the transactions. That seemed interesting to me - kind of like how during the gold rush most of the mining equipment suppliers made money while most of the miners went broke.