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Easy-to-use DeFi protocols will become the new gatekeepers to crypto

Without a doubt, joining the crypto ecosystem has never been easier.After Coinbase, a powerhouse of centralized exchange, recently began allowing users to: Deposit part of their flat salary With cryptographic exchanges, more and more people are recognizing the potential of the industry and are beginning to participate in this growing ecosystem.

However, cryptography is generally perceived as being essentially complex or lacking the proper interface, and this has been perceived for some time, whether it is right or wrong. To some people, the premise of digital currencies will always look very complicated. But lately, easier ways to cryptospace have emerged for those who want to learn more.

It is important to clarify why people should consider entering cryptocurrencies. Like other industries in the world, digitalization is revolutionizing every aspect of our lives. Being able to understand it early will allow more people to understand the benefits of this technology in the financial world and become accustomed to a future that is likely to make heavy use of digital currencies.

Related: List of frenzy! Coinbase will add nearly 100 crypto assets to trade in 2021

For this reason, making the entry point to the crypto as easily accessible should be an effort considered by all developers in this area. But that does not undermine the fact that the industry has come a long way and continues to prove why decentralization is the key to a fruitful financial future.

What is the current entry point to cryptography?

The current entry point for the digital currency industry is certainly easier to find than it was a year ago. However, much more needs to be done to ensure that the existing path to space for cryptocurrency beginners is maintained, continuously improved and promoted to the right people.

There are not only tools to help you learn and buy crypto, but also applications that make those assets work. Yield agriculture Is a relatively easy entry point into cryptocurrencies: a product that was once perceived as a complex feature within decentralized finance (DeFi), but that most people can understand and start making money right away. A mature, high-interest return form portfolio for deposits. You can simply buy a few tokens and bet them on your liquidity or loan pool to accumulate value.

In addition, recently there is a famous entry point Non-fungible token (NFT). NFTs are “unique” assets in the digital world and can be bought and sold like any other asset, but they may not have their own specific format.The universe has seen rapid exponential growth in the first half of the year during 2021 $ 2.5 billion in sales For NFT only.

Basically, NFTs are new and quirky to the mainstream. They have a lot of influence as they have only recently attracted the attention of the mainstream audience, which increases their desirability and demand. The world of “art” I’ve seen explosive growth In the NFT sector, digital artists can reach millions of people / customers cheaply and instantly.

Related: 2021 ends with a question: Will NFTs stay here?

Another reason why NFTs are soaring in popularity is the sense of status they have. Some NFTs themselves are growing communities like their own cults like CryptoPunks and BoredApes, and owning an NFT can be very wealthy, not to mention very exclusive. You will be recognized as a member of the club. We’ve seen some NFT artwork sold for huge sums, but this is just the beginning of a very young ecosystem.

What’s the problem with these existing entry points?

To increase the accessibility of cryptography, the project must be adaptable as things like high gas prices keep people away from the Ethereum network. Due to the nature of these exorbitant gas charges, this has driven many projects and users to other cheaper blockchains like Solana — recently Solana Monkey Business, Degenerate Ape Academy and Meerkat Millionaire Country. I saw something about the NFT boom at the launch of the club.

Work has to be done to keep crypto familiar, accessibility, high gas prices, and complex UX issues prevent new users from reaching their full potential. However, more education is needed to ensure that these new users can use these products with confidence and not worry about losing money that they may have invested in digital currencies.

Related: DeFi speeds up as alternative blockchains and NFTs boom

While we’re seeing recognizable advances in DeFi that help us create easier access points to cryptography, NFT space is still a long way off.Given the spectacularly high prices of some of the most popular NFTs, including: Boring apes When Cryptopunk Sold for hundreds of thousands of dollars, it acts mostly as a deterrent. People who don’t have cryptocurrencies are wondering why they pay this kind of money for digital images that can be easily duplicated.

This is also related to the points about education and how useful it is when NFTs are properly implemented and how more people need to achieve it. This stems from the maturity of NFT projects, demonstrating why these tokens are valuable and useful in everyday life, not just limited to quirky internet art.

What is the future of DeFi and NFT projects?

In the early days, cryptocurrencies and blockchain applications were essentially proof-of-concepts with less emphasis on ease of use. There is little media coverage, and the price of certain currencies such as Bitcoin (BTC) And Ether (ETH) Is still relatively low, and the focus has been on developing these technologies into feasible ones. But after the first coin offering (ICO) boom of 2017, the summer of DeFi in 2020, the rise of NFTs, and the rise of BTC and ETH, more people want to learn and participate in this digital revolution. Previously, there was no demand for an easily understandable entry point for cryptography, but now we are at the pinnacle of mainstream people who want to engage in digital assets.

Related: What is the future of cryptography and blockchain in 2022? Expert Answers, Part 3

One of the ruthless facts of the digital financial industry is that some DeFi and NFT projects will survive and others will fail due to space turmoil and unpredictability. It is important to show the usefulness of as many projects as possible in order to extend the life of the project and attract external attention by increasing the number of users while emphasizing the risks.

Many of the NFTs in the space are immature or just take advantage of the current hype and speculative atmosphere surrounding digital art, and many buyers are worthless beyond visual aesthetics. You will keep the digital image. Digital assets are still threatening many, and we will make collaborative efforts in education to help those who are agnostic of digital finance understand the true value proposition of digital assets. The existing entry point to crypto is a good starting point, but more to ensure the widest possible range so that many people have the opportunity to engage in potential life-changing spaces. Educational systems and support are also needed.

This article does not contain any investment advice or recommendations. All investment and transaction movements carry risks and readers need to do their own research when making decisions.

The views, ideas and opinions expressed here are for the author only and do not necessarily reflect or express the views or opinions of Cointelegraph.

Redmption, Also known as “Red,” is a community moderator for Harvest Finance, a DeFi hedge fund aggregator, offering high revenue, low gas rates and an automated strategy. Red is a popular harvest farming expert, and his insights and opinions are regularly published in many international publications.