Decentralized finance continues to only gain steam within the crypto world.
In Q1 2021 alone, the total value locked (TVL) in various DeFi protocols tripled – jumping to $46 billion. A year ago in May 2020, TVL still sat under $1 billion. Lending platforms like Compound and Maker have dominated the scene, with lending and DEX activity accounting for 85% of the Q1 DeFi market share.
The appeal of DeFi is pretty simple. Users are flocking to protocols due to the low barrier of entry, attractive interest rates, and automated transaction structures that ensure (usually) fast settlement without any hangups concerning a middleman.
Advanced DeFi Platforms Usher In New Earning Opportunities
Many traders take advantage of favorable conditions and rely on various derivative, arbitrage, and options-related strategies to capitalize on market volatility to reap large returns. Premia Finance is one platform offering opportunities for traders looking to hedge risk.
Premia users can mint (write) customized call and put options for various assets, setting the strike price, expiration date, and asset quantity. Premia utilizes the ERC1155 standard to support any token with just a single multisig transaction. Options are paid out in an American-style model and can be bought and sold on Premia’s secondary marketplace.
With an on-chain book order, the Premia marketplace facilitates transactions without the use of a centralized server or third-party.
As users buy and sell on Premia, funds remain on the platform. This can be useful for those looking to make a large number of transactions or trade multiple times. Holding money on the platform means it’s easily accessible, especially when Ethereum gas fees are lower.
In The DeFi World, Keeping Money Safe Is Of Utmost Importance
But what should crypto users do if they’re looking to take profits off of Premia’s platform? Some holders might want to keep funds in a separate location for better security. Others might not be tempted as much to trade or spend money stored in a different wallet.
Decentralized finance users should carefully consider the type of crypto wallet they use. While many wallets tout a range of features, some do have advantages that stand above the competition.
Crypto wallets connected to the Internet, and can be accessed on a computer or smartphone, are a popular choice for people looking for easier fund access. However, some wallets only support a certain number of coins, meaning holders could have to juggle multiple wallets, private keys, and passwords.
Coin.Space’s Coin wallet presents users with a unified wallet address so crypto traders can buy and sell, participate in ICOs, and receive airdrops, all under one address.
Each wallet installation is fully localized on the specific device, lowering the risk of an issue from the client side. This means private keys are also stored on the specific device, giving a wallet user autonomy over funds.
If a crypto user does not own their private keys, they really don’t actually hold their money.
Wallet holders are also asked to create a four-digit PIN number to secure their wallet. BIP39 passphrase encryption is enforced on wallet creation and device security is enhanced through the industry-leading AES-256 encryption.
Trading Smart In The DeFi World Requires The Right Tools
Using both tools, an industrious DeFi user can harness the robust crypto economy on Premia.Finance and then safely secure any profit on an outside wallet like Coin.Space’s Coin wallet. Both platforms are safe, easy to use, and offer a high degree of security for rookie and experienced traders alike.
DeFi users should understand while the industry is lucrative, scams and potential issues abound in the space.
Traders should be smart about the platforms they use and be wary about what type of outside crypto wallets their money goes into. Hackers and thieves are only becoming more sophisticated. It can be extremely difficult, if not impossible, to retrieve stolen funds if a problem does occur.
A large amount of risk is mitigated through using the right tools. Premia Finance’s platform offers crypto users an array of tools to harness the bustling DeFi ecosystem, while a secure crypto wallet like Coin.Space’s offers strong privacy protections and an easy-to-use UX.