Today’s crypto hodlers progress to use crypto to participate in the Blockchain ecosystem and benefit

in hive-175254 •  10 months ago 

Image by Gerd Altmann from Pixabay

Cryptos are no more just investments to sell and book profits through speculation

These days it’s essential for crypto enthusiasts to do more than just buy cryptos and hodl them in non-custodial wallets because cryptos are not just instruments to engage in trading in a hope of making exponential profits. Cryptos these days are used in various dapp applications where they are deposited, staked, spent, loaned etc.

Since the past 2 years, crypto enthusiasts are locking up their cryptos in Blockchains to use it in various dapps ranging from Decentralised Finance, Gaming, Social Media and various other Decentralised Application Platforms.

Cryptos are utility tokens required for active participation in various DApp platforms

The Total Value Locked (TVL) into Decentralised Finance(DEFI) apps is estimated to be more than 175$ billion by DEFILama. If we further consider the total value locked in Blockchains in other Dapps belonging to other niches like gaming and social media, then there will be more value locked in Blockchains.

TVL of crypto in DEFI, chart from DefiLama

So, gone are the days where crypto enthusiasts just held on to cryptos and used it merely to trade for profits. The Blockchain Era has ushered in well and truly now with cryptos getting used, proving that they are digital assets of value. It goes without saying that this Blockchain era is very exciting for crypto enthusiasts as they dabble with various Dapps.

From an Idle crypto hodler to a DEFI enthusiast

Image Source

Until recently, I was a crypto enthusiast who just held crypto in a desktop wallet and did not use it for any other purpose. Eventually, as new Dapps came into existence in other Blockchains other than Ethereum, I took my time and got into the DEFI world using Polygon. This was an interesting experience.

I wanted to try DEFI using Binance Smart Chain when it arrived but at that time, I was not able to because I was such a newbie to DEFI that I didn't even know how to use Metamask and I had to learn how to configure the Metamask wallet to Binance Smart Chain Network besides many other things, so I gave up.

Later, I dedicated enough time and entered into the DEFI world via Polygon, learning how to configure Metamask to other networks. So I have my Metamask configured to Binance SMart Chain and Polygon Network too, and have swapped tokens in Orion Dex, lent and borrowed in Aave and swapped cryptos at 1inch exchange.

My practical learnings about DEFI, smart contract wallets etc

Image Source

All this experience provided me with an enriching learning experience that gave me more understanding of smart contract wallets, DEFI apps etc. So, I know what a smart contract wallet is, when earlier I did not know what such a wallet was, as I only knew desktop wallets that do not have smart contract abilities; Atomic Wallet.

After this, I learnt that every Blockchain has an inbuilt wallet that interacts with Dapps in its Blockchain ecosystem. So like Ethereum has Metamask, Cosmos Blockchain has Keplr wallet, Solana has, Polkadot has polkadot{.js} extension etc. This has enabled me to check out some dApps in Cosmos like Osmosis with the keplr wallet and Solana’s Serum with the wallet.

Metamask wallet configured to connect to other Blockchains beyond Ethereum

Lastly, Blockchains like Polkadot plan to be accessible to Metamask users, so when Polkadot launches, one may be able to connect with Polkadot Dapps through Metamask. The Metamask wallet will obviously require to be configured to the Polkadot Network that time, like the wallet is configured for Binance Smart Chain and Polygon Network.

Never too late for crypto enthusiasts to progress beyond the basic crypto hodling activity

If there are crypto hodlers out there who have not checked out the world of DEFI still, do take time to set up a smart contract wallet like Metamask and kick start your DEFI experience. Once you have metamask you can try out various DEFI apps in Polygon, and Binance Smart CHain etc.

This experience will be very enriching, exciting and beneficial.

Thank you for reading my article, have a great day.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!