Tether Trading forecasts and signals

Bitcoin has renewed its highs in three weeks.Capital outflows from cryptocurrencies were the highest in three months. Bitcoin's hash rate renewed its record peak, pushing its halving date to Q4 2023.Solana jumped on the rise of NFTs issued on the blockchain. Bitcoin rose 3.6% on Monday, ending the day near $22,400 amid rising stock indexes and a weakening U.S. dollar. BTC tested highs in more than three weeks near $22,500.According to TradingView, the correlation between bitcoin and the S&P 500 index began to strengthen again last week. BTC's reliance on the U.S. stock market fell to a one-year low in August.Solana (+7.8%) showed the highest daily gain in the top 10. Despite the market decline, the number of non-interchangeable tokens (NFTs) issued on Solana's blockchain rose sharply, reaching 312,000. In parallel, the trading volume of collectible assets on the network jumped as well.According to CoinShares, net capital outflows from cryptocurrencies last week were $63 million, a figure that was the highest in the past 12 weeks. Meanwhile, outflows from Ethereum funds accounted for $62 million and bitcoin funds for $13 million. Investments in funds that allow shorts on bitcoin rose by $11 million.Institutional investors have maintained interest in blockchain and cryptocurrencies despite the bear market, according to State Street, the second oldest bank in the United States.The bitcoin network's hash rate updated to an all-time high of 281.79 million terahash, shifting the projected next halving date from May 2024 to Q4 2023.Bank of America has allowed Ethereum's institutional adoption to rise following The Merge, which will take place in the middle of this week. In anticipation, the Chicago Mercantile Exchange (CME) launched options on Ethereum.Search giant Google hasn't stayed away from Ethereum's imminent transition to the PoS algorithm - the company has launched a countdown timer to the merger and created a special "doodle."According to a Harris Poll, cryptocurrency investors are much more likely than traditional investors to hope to become billionaires - this was the answer of 70% of respondents with investments in cryptocurrencies.USDT issuer, Tether Operations Limited, has issued a steblecoin on the NEAR network. The NEAR Protocol platform supports open-source smart contracts, has high bandwidth and is designed to create decentralized applications.On September 19, cryptocurrency exchange Huobi will delist seven anonymous cryptocurrencies, including Dash (DSH), Monero (XMR), Zcash (ZEC). This is due to increased pressure from ...

EUR/USD: Euro remains under pressure due to inflationThe current week has shown an active correction of the EUR/USD instrument, which is currently testing the 1.0080 mark, continuing to be under pressure due to rising inflation.According to the data published yesterday, consumer prices in the European Union countries increased the growth rate from the previous 8.6% to 8.9% in July, and the base indicator strengthened to 4.0% from the previous 3.0%. The production indicator in Germany, on the contrary, lost ground to 37.2 against the previous 32.7%. Inflationary pressure in the eurozone countries continues to show moderate but steady growth, which is why tariffs, electricity and food group goods are becoming more expensive. Economists fear that inflation is only gaining momentum and the record peak has not yet been passed, which can be confidently said about the United States, where the released data showed a slight decline in the consumer price index. Meanwhile, the eurozone regulator will have to continue raising interest rates, increasing the risk of a recession in the economy. According to the statement of the ECB board member, Isabel Schnabel, the measures taken are not enough to effectively combat inflation, because the agency will continue to adhere to the policy of "hawks".Resistance levels: 1.0253, 1.0376, 1.0500, 1.0620.Support levels: 1.0009, 0.9887.Overview of the CAC 40 IndexThe French stock exchange is showing bullish dynamics during the trading session on Friday due to the reduction of the domestic bond market. At today's session, one of the key stock indicators of the CAC 40 is trading at the level of 6543.0. The investor was confirmed by the publication of the report of only one brand - Christian Dior SE, which displayed quarterly revenue at around 36.73 billion. the euro, as stated by the consensus forecast earlier. The profitability of the company's shares reached 14.84 euros, reflecting a positive indicator that allowed the securities to strengthen on trading platforms.The domestic bond market continues to develop a global downward correction, and the yield level of popular 10-year government securities amounted to 1.684%, yielding to the July indicator of 1.853%. The long-term segment of 20-year bonds is displayed similarly, the yield of which was 2.082% against the designation in July of 2.287%. The medium-term segment of 3-year bonds showed a yield of 0.98%, 5–year - 1.27%, which is lower than the last placement of 1.00% and 1.47%, respectively.Resistance levels: 6612.0, 6891.0.Support levels: 6424.0, 6074.0.Oil Market OverviewThe cost of North American light WTI grade oil shows flat dynamics, being at the level of 89.60 due to the published data the day before.The central factor creating pressure on the quotes is the situation around the export of "black gold" in Iran. If at the beginning of the summer season, economists were worried about global fuel demand in the context of the resumption of exports of cheap Iranian oil to world markets, now, as extreme publications show, the indicator for March 21 to July 22 shows an increase to the level of 30%, which is displayed numerically 870.0 thousand barrels per day - a record designation among the total the number of companies producing raw materials in the West Asian region. The growth dynamics showed the highest rates since 2018, in which the United States decided to withdraw from the "nuclear deal", while official Tehran's income for oil supplies showed an increase of 481% during the first four months of the calendar year in Iran.Resistance levels: 93.33, 100.00.Support levels: 86.41, 78.55.Cryptocurrency Market OverviewDigital assets are traded under the influence of two opposite factors. The negative trend of the crypto market is indicated by the publication of the final minutes of the last meeting of US Federal Reserve officials, however, the rapid collapse until Friday was held by investors' hopes about the imminent transition of Ethereum to new PoS (Proof-of-Stake) algorithms, which attracted the attention of all traders interested in the cryptosphere. Following the results of Wednesday, the minutes of the meeting of the US financial department were published, confirming the tightening of monetary parameters within the framework of achieving the target inflation rate of 2.0%, therefore there will be no breaks between the increase in the key indicator. During the cyclical tightening of monetary parameters, the US dollar will receive support against alternative instruments. Experts note the truthfulness of the forecasts of the head of Galaxy Digital, Michael Novogratz, who said the day before that the dominance of the "hawks" in the US Federal Reserve will inevitably lead to a correction of the entire segment of digital assets, and BTC quotes will not be able to overcome the resistance level of 30000.00 until the end of this year, but will fluctuate around 20000.00 – 30000.00.The cryptocurrency market ends the current week with an active fall. The collapse of positions occurred during Friday's trading session without any correct factors, because economists can only link the decline in assets with the speculation of "whales". Currently, BTC has reached 21800.00, having lost 11.5%, ETH is testing the 1730.00 mark, having sank by 14.8%, USDT has gained a foothold at 1.0000, having fallen by 0.02%, and BNB is trading at 280.00, whose losses amounted to 12.6%. The valuation of crypto assets decreased to 1.048 trillion dollars, having a BTC share of 40.01% in ...

GBP/USD: the instrument is testing a record lowGBP moved to the sideways dynamics of movement, ending up at 1.1820 with prospects for further decline, having made an unsuccessful attempt to strengthen the day before, finding support in positive statistics from the UK.This week, an economic block on GDP activity and the level of industrial capacity for May was released. Thus, the economic situation in the UK improved by 0.5%, having previously shown a decline of 0.3% in the previous reporting period, contrary to analysts' expectations of zero development of the indicator. At the same time, the level of industrial activity in the same period showed an increase of 0.9%, having previously undergone a corrective decline of 0.1%, contrary to forecasts of zero growth. Moreover, the annual indicator changed to 1.4% from the previous 1.6%, contrary to experts' expectations of a correction to 0.5%.Resistance levels: 1.1854, 1.1933, 1.2000, 1.2074.Support levels: 1.1800, 1.1758, 1.1700, 1.1600.USD/TRY: the dominance of the US dollar continuesDuring the Asian trading session, the USD/TRY instrument shows moderate growth within the slow dynamics of the "bulls" formed since the end of June, when the instrument completed the correction stage until June 27.Inflationary pressure on the Turkish economy continues to update peak indicators. Thus, the June level was 78.6% for the year against 73.5% for the previous period, having overcome the peak of September 1998. The Turkish government has already predicted a reversal of dynamics closer to December, and experts attribute the strengthening to a rapid increase in prices for transport services, which exceeded 123.0% due to the rising cost of fuel. Meanwhile, economists do not recognize the reliability of official data from TurkStat (Turkish Statistical Institute), suspecting that statistics are distorted in favor of understatement, despite strong negative indicators.Resistance levels: 17.6000, 17.7500, 17.9000.Support levels: 17.3454, 17.1775, 17.0000, 16.7500.Gold PricesThe value of the precious metal continues to remain in a near-zero position as a result of the lack of incentives for price changes. In the present, the asset is consolidated at the minimum levels of 1710.00.The day before, gold showed a rapid decline, eventually losing 1.7% in price, which made it possible to update the local minimum of the end of summer 2021. The negative dynamics were supported due to growing concerns about the outlook for global GDP. In particular, data on June inflation were recently published, reflecting the situation in consumer prices, which strengthened to 9.1%, becoming a record for the last forty years. Against the background of statistics, economists raised their expectations and preliminary estimates on the probability of an increase in the key indicator by 100 basis points at once. On the other hand, the instrument is under pressure due to the prospects of increasing the sanctions adopted by Western countries against the Russian Federation. Among other things, the possibility of a complete embargo on the import of precious metal from Russia is being actively discussed.Resistance levels: 1745.0, 1786.0.Support levels: 1707.0, 1685.0.Cryptocurrencies Market OverviewAnalyzing the news background of the cryptocurrency market, it is worth highlighting first of all the issuer of the USDC, the Circle company, which published reports on the provision of its assets. So, according to the data, the USDC stablecoin is backed by the US dollar in the amount of 13.8 billion. and US Treasury bonds in the amount of 42.12 billion. The company plans to publish statistical data on a regular basis for transparency to investors, fighting for their trust. This week, Ripple has achieved some success in a lawsuit against the SEC (the U.S. Securities and Exchange Commission). Thus, the court rejected the company's request to recognize the comments of the ex-head of the regulatory authority, William Hinman, as illegal. The head of the authority claimed that the SEC does not perceive ETH and BTC as securities, which gave Ripple lawyers a reason to accuse the regulator of an official position on this opinion. Consequently, it is impossible to perceive XRP as a valuable asset, because its nature is essentially similar to the aforementioned assets. If a sufficient evidence base is provided, Ripple has every chance of a positive result in the case against the American regulator.During this week, the cryptocurrency market traded with mixed dynamics – the initial decline gave way to the restoration of lost positions. At the time of writing, BTC reached the level of 20900.00, having sank by 0.3%, ETH is trading at 1210.00, having added 2.8%, USDT, continuing a moderate decline, is trading at 0.9995, having lost 0.01%, BNB sank to 237.00, having lost 2.5% in ...

After the stunning events of last week, the crystal currency market is rebalancing and analyzing the causes of the crushing collapse.Supported by the owners of Bitcoin, the market of the main cryptocurrency is currently holding the price above the psychological level on May 17.Last week, along with the pressure of macroeconomic factors, the volatility of the Bitcoin market was intensified by turbulence and chaos created by two stablecoins, UST and USDT. Since stablecoins have been the main link between the digital world and real capital in the last two years, this has created additional downward pressure on the value of Bitcoin.According to market researchers Glassnode, the two largest interdependent cryptocurrency assets by market capitalization, LUNA and TerraUSD (UST), lost 40 billion in investment value within a few days.TerraUSD (UST) stablecoin was a very promising project and was in the top ten by market capitalization. In decentralized finance (DeFi), it was second only to Ethereum (ETH) in popularity.Thanks to the algorithmic design, UST and LUNA were mutually convertible, but each UST token could only be exchanged for one LUNA token, worth $1. Thus, the requirement of linking the UST stablecoin to the dollar in a ratio of 1:1 was ensured, which was supported by the Luna Foundation Guard (LFG) reserves. When the demand for UST increased, the supply of LUNA decreased and vice versa, when the demand fell, and with it the prices, the supply of LUNA increased.Last week, the algorithmic UST stablecoin almost lost the required 1:1 dollar peg, and the LUNA balancer coin depreciated to the level of "0.00001 dollars due to hyperinflation of supply." Sales of LFG reserves in the amount of 80 thousand BTC did not save the situation and many exchanges excluded them from their listing.At the same time, during the market turbulence, the largest stablecoin Tether (USDT), backed by various assets, including risky ones, also briefly collapsed to the level of $ 0.965. Thanks to the measures taken by the creators of USDT aimed at restoring collateral reserves, the Tether stablecoin (USDT) is trading at $0.999 today.Given the scale of the impact on the cryptocurrency market and the risk to the traditional financial system due to the conversion of a stable coin into a fiat currency, the issue of adopting a law on the regulation of stable coins has been raised again in the US Senate Banking Committee.As reported by Newsis, the top financial regulators of South Korea were also concerned that the fall of UST and LUNA caused damage to more than 200 thousand investors in South Korea and Singapore. According to the Commissioner of the Financial Supervision Service, Jong Eun-bo: "There are concerns that confidence in the virtual asset market will decrease and users will be harmed." In this regard, the issue of creating a global system for regulating virtual assets should be ...

The US authorities are ready to resume the prosecution of Tether, the issuer of the USDT stablecoin.The US Department of Justice has launched an investigation into Tether with the prospect of opening a criminal case, Bloomberg reported, citing informed sources.The company is suspected of bank fraud and providing false information in financial reports.The US Department of Justice intends to analyze the activities that Tether conducted in the first years of its existence. In particular, he is interested in the possibility of hiding transactions related to cryptocurrency. The decision to open a case may be made later, after the Ministry of Justice has established the validity of the charges.As Bloomberg notes, the current investigation suggests that the investigation could have switched attention to bank fraud from market manipulations that Tether was accused of in the past.Tether called the Bloomberg article a "clickbait" based "on unnamed sources and statements from many years ago."Tether has already become a person involved in the trial in 2019, when the company gave a loan to the cryptocurrency exchange Bitfinex. In February, the crypto exchange Bitfinex and Tether settled a conflict with the New York State Prosecutor's Office (NYAG). As part of the settlement agreement, Bitfinex and Tether paid $18.5 million.Recall that in June, the president of the Federal Reserve Bank of Boston, Eric Rosengren, called the USDT stablecoin a "new destroyer" of the short-term lending market.On July 20, US Treasury Secretary Janet Yellen called for the creation of a regulatory framework for stablecoins. According to her, in the coming months, regulatory authorities plan to issue recommendations to eliminate regulatory gaps in relation to stablecoins.On July 22, the head of the SEC, Gary Gensler, said that cryptocurrencies that are tied to the value of traditional financial assets fall under the securities legislation.Tether is the permanent leader of the segment. According to The Block, the share of USDT in the total supply of stablecoins is 57.81%. According to Tether's quarterly report, as of March 31, 2021, cash and cash equivalents formed 76% of Tether Holdings Limited's ...

Today, few people have not heard about cryptocurrencies and blockchain technology due to the activity of the media and social networks. The CoinMarketCap rating is regularly updated with new coins.However, investors need to remember one important point when compiling a portfolio. Despite the fact that 2212 coins have been added to CoinMarketCap at the moment, only the TOP 5 cryptocurrencies account for about 95% of the total capitalization, while the rest account for no more than 5%. That is why coins from the TOP 5 should make up a large part of the investment portfolio.Litecoin (LTC)Binance Coin (BNB)Tether (USDT)Stellar (XLM)Cardano (ADA)Litecoin (LTC)The Litecoin cryptocurrency is one of the oldest coins, which originated in 2011 as a fork of bitcoin. The founder is a well-known person in the crypto world named Charlie Lee. Like bitcoin, Litecoin provided a peer-to-peer environment for making direct payments. From the very beginning, the cryptocurrency was called "digital silver", again, by analogy with Bitcoin.  In the first years of its existence, the Litecoin code was practically no different from Bitcoin, except that the SHA-256 encryption algorithm was replaced by Scrypt, which at first allowed the cryptocurrency to be "asic-resistant", and miners to use central and graphics processors to participate in mining. The issue was also increased fourfold (up to 84 million LTC) and the time for creating a new block was reduced (up to 2.5 minutes). This made it possible to make the Litecoin blockchain faster.Read more: What is SHA-256However, over the past few days, Litecoin has increasingly deviated from the original code due to the introduction of new technologies and improvements:Lightning Network to improve the scalability of the network and increase the speed of payments;SegWit, which increased the block size and reduced the transaction delivery time;Atomic swaps with three cryptocurrencies at once Decred( DCR), Vertcoin (VTC) and Bitcoin (BTC). In addition, the developers have expanded the capabilities by adding a hashed contract function.Despite the fact that Litecoin does not represent any radically new technologies, the cryptocurrency is already used on many platforms as a means of payment. And the fact that you can buy it on almost any exchange, including on large exchanges such as Binance, Bitfinex or Huobi, is not even worth talking about.Read more: Overview of the Huobi Global ExchangeBinance Coin (BNB)The Binance Coin cryptocurrency is an internal token of the Binance cryptocurrency exchange. It is used for conducting operations on the site: payment of commission when executing transactions, it is traded in pairs with all coins added to Binance, provides traders with additional opportunities for long-term storage of BNB. In addition, some services accept Binance tokens as a means of payment.  It was originally created on the Ethereum blockchain according to the ERC-20 token standard. However, in the winter of 2019, Binance launched its own Binance Chain network, after which Binance Coin was transferred to the "native " blockchain.Over the past few months, the Binance Coin cryptocurrency has shown good growth, especially against the background of the prolonged crypto winter. This was facilitated by several events at once.First, Binance offered a new ICO model on its Binance Launchpad platform-IEO, where BNB was, if not the only coin for which you could buy tokens, then always one of several. In addition, on the Binance DEX decentralized exchange, the BNB coin will act as a "native" coin, just like on Binance. Among other things, the founders continue to regularly "burn" BNB tokens, which positively affects the price of Binance Coin.        Looking at the BNB exchange rate chart, it is worth saying that Binance Coin is deservedly included in our TOP 10 cryptocurrencies, because its value has almost doubled over the past few weeks. In addition, the current price even exceeds the indicator of the winter of 2018, when absolutely all cryptocurrencies grew. Read more: What is an ICO?             Tether (USDT)The Tether cryptocurrency is a coin that became the first stablecoin that gained popularity in the crypto world. The Realcoin project, launched in July 2014 by the vice president of the world-famous Starbucks company, marked the beginning of this coin. The idea was to create a cryptocurrency, the price of which would be pegged to the dollar exchange rate. However, this cryptocurrency was not in demand, and therefore a full rebranding was carried out a couple of months later. Immediately after that, Tether was added to one of the largest exchanges, Bitfinex.    Tether is one of the most scandalous cryptocurrencies in the entire crypto world. The coin has earned this reputation from the very beginning. The creators said that Tether and the Bitfinex crypto exchange are not connected in any way, but later the Paradise Papers documents surfaced, which confirmed the connection between the companies.Another scandal is related to the fact that Tether Limited could not prove the security of tokens with fiat assets, since it never conducted open audits. And in the spring of 2019, information surfaced on the network that some of the coins are provided with bitcoin.Tether is a fully centralized cryptocurrency. The issue of tokens and verification of payments is handled by Tether Limited, and to work with tokens, you need to pass verification.However, despite all the disadvantages described above and the presence of promising competitors in the face of younger stablecoins, Tether still remains the leader in this category of cryptocurrencies. At the time of writing, the cost of one token is $1 with a capitalization of almost $3.4 billion. However, over the entire history of the coin's existence, its value has varied between $0.91- $1.06.Read more: What are Stablecoins and how do they differ from other cryptocurrenciesStellar (XLM)The next is Stellar, which was created under the slogan "people's cryptocurrency", in contrast to the XRP cryptocurrency, on the basis of which it was originally launched.To be more precise, Jed McCaleb, one of the founders of Ripple, left the project in 2014, deciding to launch his own crypto product. From the very beginning, the Stellar cryptocurrency worked on the Ripple blockchain, but in 2015 the team rebranded and transferred the coin to its own blockchain called the Stellar Consensus Protocol (SCP). The tokens also received a new name-Lumens.The creators did not conduct an ICO, but the project has a major investor - the Stripe company, which invested $3 million in Stellar. The coin confirmed its status as a "people's cryptocurrency" by the fact that, unlike Ripple, it made mining available to everyone. However, as a reward, nodes receive only small commissions, which does not greatly encourage users to become miners.The goal of creating the Stellar cryptocurrency is to create a network for fast and cheap payments that are accessible to ordinary users, and not banks, as in the case of Ripple. Regardless of the transfer amount, you need to pay a commission of 0.00001 XLM (~$0.00000126 at the exchange rate at the time of writing this article). One of the huge advantages of this coin is the support of fiat currencies, thanks to which you can make cheap transfers even to countries where there is no technical possibility to use cryptocurrencies.The Stellar protocol initially includes an annual inflation rate of 1%, so 1 billion new XLMs are issued every year.Read more: Causes of inflation and scientific approaches to their studyCardano (ADA)This is a new generation cryptocurrency, which the developers themselves position as "Blockchain 3.0". The idea of creating this coin belongs to one person named Chals Hoskins, but there are three companies behind the creation and development of Cardano — IOHK, Emurgo and the Cardano Foundation.Work on the Cardano cryptocurrency began back in 2015, but the coin was presented to the crypto world only in 2017. The development was carried out with the money raised through the ICO - a total of $63 million was raised after the sale of almost 60% of the tokens from the total amount of 45 billion ADA. Interestingly, 95% of all tokens at the ICO were purchased by Japanese investors.    Cardano is not just a cryptocurrency for making payments in a decentralized environment, it is a whole ecosystem for creating dApps, conducting voting and many other functions. It is a direct competitor to Ethereum, but Cardano offers anonymity, higher speed of payments, advanced smart contracts. In addition, according to the developers, the cryptocurrency offers the user a higher level of security by working on the Ouroboros consensus algorithm — the first and so far the only protocol with mathematically proven security. In addition, according to the "roadmap", developers will implement algorithms for protection against quantum attack.  But despite such innovative solutions and ambitious plans, Cardano is currently experiencing difficult times in the cryptocurrency market. The price of one coin is now $0.09 compared to the peak of $1.15 in January 2018. At the same time, the current capitalization is $ 2.35 billion:       ...

According to the DeFi Pulse service, the value of digital assets blocked in DeFi protocols has demonstrated explosive growth and has grown from $1 billion in 2019 to $15 billion in 2020. Another growth jump-up to $87 billion - was recorded in May 2021. At the same time, DeFi is still at an early stage of its development. In this article, we will tell you what DeFi is, how it works, whether there is a future for this technology and how to make money on DeFi tokens.ContentHow DeFi worksDeFi: what is it in simple wordsAdvantages and disadvantages of DeFiHow to make money on DeFiHow to invest in DeFiHow DeFi worksDeFi is a financial instrument in the form of services and applications created on the blockchain. The main task of decentralized finance is to become an alternative to the banking sector and replace the traditional technologies of the current financial system with open source protocols. That is, to open access to decentralized lending and new investment platforms to a large number of people, as well as to allow them to receive passive income from cryptocurrency assets.Most of the existing DeFis are created on the Ethereum blockchain, and the number of new applications in the field of decentralized finance is steadily growing.The pioneer among the DeFi applications that have gained wide popularity was the MakerDAO platform, launched at the end of 2017. Since then, the total amount of funds placed in DeFi protocols (TVL, Total Value Locked) has been constantly growing, and faster. So, in May 2018, TVL was $150 million, in May 2019 – $500 million, in May 2020 – $950 million, and on May 12, 2021, the figure reached a record $87 billion.DeFi: what is it in simple wordsDeFi uses various technologies developed in the field of blockchain. All of them find application outside of decentralized finance, but they play an important role in the DeFi ecosystem.According to a joint study by Wharton Blockchain and Digital Asset and the World Economic Forum, there are several components of what DeFi is.First of all, DeFi projects are blockchains, distributed registries for recording transactions. Currently, most DeFi services work on the Ethereum network due to its capabilities and popularity among developers. However, the activity of DeFi is also growing in other blockchains.Then there are digital assets, that is, DeFi tokens that represent value that can be sold or transferred in the blockchain network. “Bitcoin and other cryptocurrencies were the first blockchain-based digital assets. Others have a number of functions that go beyond payments”, the study notes.The next component is wallets: software user interfaces for managing assets stored in the blockchain. With the help of a non-custodial wallet, the user fully controls his funds through private keys. In the case of custodial wallets, the private keys are managed by the service provider.Another important block of the ecosystem is smart contracts. It is a blockchain-based program code that executes, monitors and documents relevant events and actions in accordance with predefined conditions and rules.Based on smart contracts, decentralized applications (DApps) are created, which are often integrated with the user interface using traditional web technologies, and decentralized autonomous organizations (DAO): organizations whose rules are defined and regulated using smart contracts.The next step is stablecoins (digital assets whose value is tied to a fiat currency, a basket of fiat currencies or other assets with a stable value).Software mechanisms that manage changes in smart contracts or other blockchain protocols are embedded in DeFi management systems. They are often based on tokens that distribute voting rights among interested parties.Read more: What are Stablecoins and how do they differ from other cryptocurrenciesAdvantages and disadvantages of DeFiAdvantagesTransparencyInclusivityCross-border natureDisadvantagesLow system performanceRisk of user errorRandomnessThe advantages of decentralized financial services have been known on the market for quite a long time. This is also decentralization: DeFi tokens allow you to conclude transactions between users using a variety of computers of other participants, and the absence of a human factor. Decentralized finance (DeFi) works on the basis of smart contracts, which eliminates the human factor.We can also mention transparency – the DeFi market is created on the basis of source code. All information about transactions is always available to any user. Therefore, such applications will easily pass an honest audit.The second significant advantage of the ecosystem, experts call inclusiveness, that is, the ability to launch a DeFi product for any project, without the permission of banks and regulators.Another strong feature of the DeFi system is its cross-border nature. Here you can use financial services without intermediaries. Loans are issued in a few clicks at home, without bureaucratic red tape and draconian interest rates.However, this new tool certainly has its drawbacks.Experts attribute low system performance to them. Blockchains are inherently slower than their centralized counterparts, which leads to the creation of additional applications. Developers of DeFi applications should take into account such limitations and optimize their products accordingly.There is a high risk of user error within the system. DeFi applications transfer responsibility from intermediaries to the user. This can be a negative aspect for many. Developing products that minimize the risk of user error is particularly challenging when products are deployed on top of immutable blockchain networks.Another factor of instability in the ecosystem is its chaotic nature. Finding the most suitable application can be quite a difficult task, along with this, users must have a certain skill to choose the best option. According to experts, the problem is not only in creating applications, but also in thinking about how perfectly they can fit into a large ecosystem of decentralized finance.How to make money on DeFiDespite some instability and high risks, DeFi tokens allow you to earn money. Experts talk about three popular ways to make a profit using the ecosystem.Commissions from transactionsThe investor places liquidity (cryptocurrency) on a decentralized crypto exchange and receives a share of the commission from trading transactions. The commission is usually 0.25-0.3% and is divided between liquidity providers according to their share in the pool.The more active the trading is, the more commission income the protocol receives and the higher the yield, but in many pools it can also be negative. The maximum value is 0.27% for 30 days, that is, about 3.2% per annum. In smaller pools, you can earn more, but the risks are much higher.CryptolendingThe investor contributes part of the funds to the pool of the landing protocol, and this money is issued as loans. This service is popular, first of all, among traders who are not satisfied with the conditions offered by a centralized crypto exchange.The borrower must place a pledge in the amount of more than 100% of the loan amount (sometimes 150% and even 200%); in case of non-payment of the debt, this pledge is automatically liquidated (sold), so that the lender gets his money back in any case.The yield depends on the currency of the loan and is constantly changing. The highest rates are usually for stablecoins - USDT, USDC and DAI (up to 15%).Profitable farmingThe standard scheme is as follows: an investor buys a token, most often Uniswap, and places it in the liquidity pool of a trading or landing protocol. And as a confirmation of participation in the pool, he receives special LP tokens, which are deposited (staked) on a special smart contract.Immediately after the launch, projects often pay large farm bonuses, so that the nominal yield can reach 1000%. Gradually, the number of tokens distributed every week decreases, but the yield still remains at the level of 50-100%.It should be remembered that this profit is nominal, and the real income will depend on the price of the token.How to invest in DeFiHowever, before you give your liquidity to other users, you need to enter the ecosystem. The most popular "door" is the world's largest stablecoin by capitalization — Tether (USDT).Unfortunately, it is impossible to buy this stablecoin inside the DeFi application. The most reliable and at the same time the easiest way is to buy USDT from a bank card in a regulated crypto exchange. It is quite easy to register in such an exchange, and this process will not take much time from a potential investor.Also, to participate in DeFi, you will need a MetaMask wallet, which is supported by all DeFi protocols. Next, you need to send the purchased USDT to MetaMask, and then link the wallet to the selected DeFi protocol. Usually, the DeFi application itself offers to do this. After establishing a connection with the wallet, you can place funds on the protocol.However, the complexity of DeFi is not in the mechanism of placing funds and generating income, but in the choice of high-quality projects. Therefore, experts advise to keep in mind the risks and enter resource applications with a small ...