Buy YFI (Yearn Finance)
The cryptocurrency market is volatile and changing rapidly. Like any market, it moves in response to supply and demand. Changing rules around the world can shape the market, and global events can drive demand for cryptocurrencies. For example, bitcoin prices rose after the Cyprus banking crisis (2012-2013) when people questioned the international banking system.
Cryptocurrencies are an uncharted space for many. Many have heard that there is money to be made on them, but it is unclear how. This article will learn about an exciting cryptocurrency called YFI. We will tell you how to invest in YFI and buy Yearn finance (YFI).
Of course, one of the main aspects that brought success to the project is the YFI cryptocurrency. YFI is a token based on the ERC-20 standard used to control the network. Only 30,000 coins have been issued, which have already been distributed. Additional YFI tokens can be issued based on a vote of token holders.
At one time, additional YFI tokens were issued to encourage participation in the project. They were distributed to those who have a stake in Yearn Finance pools. Because of the minor issue, YFI tokens are worth a lot of money. At certain times, their price has exceeded the value of Bitcoin.
When the coins were issued, there was no ICO or pre-mining, and the project was launched. In exchange for the money invested, the project issues yToken tokens.
For example, when depositing in DAI, the depositor receives yDAI instead of their cryptocurrency. This cryptocurrency can be sold or exchanged on an exchange, but it is often exchanged on the service itself to withdraw its coins back. The returned yToken is then burned.
Cryptocurrency rate factor
Social media mentions are a factor that affects cryptocurrency rates.
Social media plays a massive role in the cryptocurrency market. Whether it's Elon Musk tweeting about Dogecoin or a well-known crypto analyst announcing a new prediction, it's not the big banks that determine the price of digital assets, but Twitter, Reddit and Quora.
According to the data, Yearn Finance received a record 157 social media mentions after May 10-11, when the cryptocurrency price rose to $88,277.36. Although Elon Musk soon interrupted this rise with his infamous bitcoin statement, it still shows how closely social media is linked to the asset's value.
How do I buy Yearn Finance (YFI)?
Where to buy Yearn Finance?
So, are you ready to dive into the world of cryptocurrencies and wondering where to buy YFI in the UAE? We can recommend you choose the most reliable and safe exchanges. We can advise you to purchase cryptocurrency from exchanges:
3. Huobi Global.
4 easy steps to buy cryptocurrency:
- Step 1.
Sign up for an exchange to take your first step into trading cryptocurrencies!
- Step 2.
Pass your identity verification to buy cryptocurrencies.
- Step 3.
Buy cryptocurrency or refill your balance any way you want.
- Step 4.
Now you can start trading.
What is Yearn Finance?
Yearn finance (YFI) is a project created to manage users' cryptocurrency and automatically invest with maximum profit. It is closely related to projects that pay rewards for cryptocurrency investments - Aave [AAVE], Compound [COMP], DyDx and others.
The main goal of Yearn Finance is to make decentralised finance (DeFi) easier to access for untrained users. The project's author believes that this sphere has become so complex and confusing that it is almost impossible for the average person to understand it. Another goal is to launch the safest possible protocol, in which the creator himself is willing to invest first and withdraw last. This factor motivates those willing to buy YFI.
Yearn Finance monitors other blockchain-based financial projects, automatically selecting the one in which the user can invest at maximum interest. Investments are made directly from the homepage. No user registration or verification is required. Yearn Finance runs on ERC-20 from Ethereum [ETH].
Origin of the project
We propose to dive into the history of the project to get a closer look at its essence. Yearn Finance was launched in February 2020. At the time of launch, it was called iEarn. Unfortunately, the project's author did not keep any of the network's tokens but received part of the issue working with the project as a regular user.
The Yearn Finance project was created by a man named André Cronje. Cronje has been called a "robber programmer" for not taking the cryptocurrency industry seriously. Andre believes that cryptocurrencies are too volatile to invest in, but he has always been fascinated by the field of decentralised finance.
Cronje was attracted to the profits that DeFi projects payout to their investors. So he started investing his own money and his friends in decentralised finance.
Over time, Cronje decided to create a programme to monitor interest rates in decentralised applications automatically. This idea later became the basis of Yearn Finance.
Yearn Finance products are allowed to invest in YFI
Why invest in YFI? There are several ways to make money online, and they are spread out across different internal products.
The main products of the Yearn Finance project are:
Earn is the backbone of the project protocol, which:
- invests money in the credit services dydX, Aave and Compound.
- chooses from these services the one that currently gives the best rate for the invested cryptocurrency.
- when the rates change, and another service starts leading the rate, the cryptocurrency is automatically withdrawn and transferred to the other company.
For beginners, investing through Earn is much easier and more accessible as there is no need to deal with the investment process directly.
Vaults make staking cryptocurrencies easy. Vaults automate portfolio rebalancing and switching between cryptocurrencies depending on the bet. End users will not need knowledge of protocols or the field of decentralised finance. Moreover, the service allows you to make your investments passive, making life a lot easier for those who want to invest in YFI in the UAE.
Zap is used to invest stablecoins in liquidity pools. The user receives the commission paid by the exchange customers in proportion to his share in the pool. The money can be deposited and withdrawn at any time.
The cover is another product. The cover is an insurance product that provides financial loss coverage for smart contracts and protocols on the Ethereum blockchain—powered by Nexus Mutual.
How to store cryptocurrency
You can store this cryptocurrency in most of the famous wallets. For example, Exodus, Atomic Wallet, Coinomi are all suitable.
The cryptocurrency community has received the yearn finance network well, with many liking the idea of an "aggregator" of financial protocols. Cronje hit the mark when he said that decentralised finance had become too complicated and users needed an accessible tool.
The project created an almost complete community management scheme that reflects how cryptocurrencies and blockchain work. As a result, it maintains the high profitability of user cryptocurrency investments with relatively low risk.
In the roadmap, the team promises only "releasing new products" and "working on better offerings" The project fulfills all of its stated functions, making participation in decentralised finance easy. Moreover, the team is constantly expanding its functionality; as of February 2021, version 3 of YFI is up to date.
How can you use Yearn Finance cryptocurrency?
Whether you're a seasoned trader or this is your first purchase, you can purchase cryptocurrency using several payment methods to choose from.
Yearn Finance (YFI) is a robust speculative investment, so many buyers buy YFI and hold it in the hope of making huge profits.
You can quickly sell Yearn Finance on the exchange. You will be given all the tools you need to optimise your exit strategy. Withdraw your funds/profit to your bank at any time.
Are you looking to buy another cryptocurrency? Then, you can easily exchange any part of your Yearn Finance for another cryptocurrency of your choice.
Send (withdraw) Yearn Finance.
Send your YFIs to any address at any time, 24/7. Blockchain never sleeps.
Receive (deposit) Yearn Finance.
Receive payments or deposit your own YFI for secure storage and exchange.
Introducing decentralised finance
The adoption of decentralised finance is also one of the most important factors to consider when answering the question, "is Yearn Finance a good investment?" Like Compound (COMP) and Aave (AAVE), Yearn Finance was one of the first blockchain protocols in the DeFi space.
According to data published by FX Street, the total value, assets on DeFi, rose from $1bn to $9.83bn between June and September 2020. That's about an 800% increase in just four months. The adoption of decentralised finance is one of the leading indicators of the cryptocurrency's promise.
DeFi platforms have evolved into a powerful financial ecosystem in a short time. DeFi's most sought-after protocols include Uniswap (UNI), Maker (MKR) and Chainlink (LINK), which have quickly become some of the giant tokens in the cryptocurrency market. Now YFI has joined them as well.
Increased security is one of the main benefits of cryptocurrencies. Each blockchain (blockchain) is secured using various consensus mechanisms, and wallet addresses are usually encrypted using cryptography. This makes cryptocurrency much more secure.
Yearn Finance provides users with an opportunity to generate returns that are much higher than with traditional funding methods such as a bank savings account.
It has recently become more than just a yield aggregator, offering users the ability to exchange tokens, take out loans and even take out insurance policies.