Money gets a makeover- Managing crypto on web3 finance apps
Cryptocurrencies and blockchain are fueling an emerging class of Web3 finance apps that aim to reinvent banking and money management. By leveraging decentralization and transparency, Web3 finance apps allow access to financial services, transacting seamlessly across borders, earning yield on savings, accessing credit, and more without traditional intermediaries. Here we explore popular Web3 finance apps that are modernizing how we manage money and crypto.
To fully control crypto wealth, self-custody wallets like MetaMask and Coinbase Wallet are essential. These web3 decentralized apps allow you to store, send, receive, trade, and interact securely with tokens and decentralized apps directly from your wallet. Private keys that unlock funds are held by the user, not third parties. Top wallets also integrate decentralized app browsing and crypto conversions.
Decentralized exchanges (DEXs) like Uniswap and Pancakeswap enable trading crypto tokens directly between users with transparent liquidity pools and no centralized authority. Trades are executed through automated smart contracts. By eliminating middlemen, DEXs offer improved security, community-run governance, and unrestricted trading. Users also earn fees from supplying liquidity.
Lending and borrowing
Decentralized finance (DeFi) lending apps allow securing loans with crypto as collateral while earning interest on deposits. Apps like Aave, Compound, and Celsius connect borrowers and lenders directly using smart contracts to automate deals, collateral management, and interest payments. No credit checks exist in DeFi lending thanks to collateral backing every loan. Stablecoins maintain a steady 1:1 value with fiat currencies like USD. It minimizes volatility for payments and transfers. Popular stablecoins include Tether, USD Coin, and DAI. Stablecoins allow moving value worldwide instantly with minimal fees. DAI stays pegged to USD using an overcollateralized smart contract system, not reserves.
Trading and investment
Apps like eToro enable investing in major cryptocurrencies, stocks, commodities, and tokens alongside social networking with other traders. Gemini provides a regulated cryptocurrency exchange and wallet. Voyager offers commission-free trading. Coinbase Commerce facilitates crypto payment acceptance. Robinhood offers crypto alongside traditional investment products.
In addition to Coinbase Commerce which facilitates merchant crypto acceptance, BitPay processes payments in crypto and then deposits bank funds. PayPal offers crypto buying, holding, and checkout with crypto balance conversion. Cryptocurrency debit cards like Crypto.com Visa and BlockFi Mastercard allow purchasing anywhere that accepts regular cards by converting crypto to fiat dynamically.
Coinbase Commerce is a service that allows merchants to accept cryptocurrency payments. It provides a simple way for businesses to accept various cryptocurrencies directly cryptocurrency wallet. This means that merchants receive payments in cryptocurrency and choose to hold, convert, or withdraw them. It is merchants to accept Bitcoin and Bitcoin Cash payments and then convert those payments into the local currency of their choice. Merchants choose to receive payouts in cryptocurrencies or their bank accounts.
Web3 apps are ushering in an open financial system under user control. While adoption is still early, decentralized finance built on blockchains promises to make money and transactions more secure, censorship-resistant, global, and transparent. The apps explore managing crypto safely, earning yield, securing credit, making payments, trading, and more without traditional institutions.