DeFi is a rapidly growing sector of the cryptocurrency world. But what is DeFi, and more importantly, what can it do for creators and artists? In short, DeFi is a suite of decentralized applications that allow users to create and trade financial instruments without relying on third-party intermediaries. This could mean anything from creating and exchanging tokensized assets to borrowing or lending money. For artists and creators, this could mean lower costs and fewer restrictions when it comes to financing their work. So far, DeFi has shown tremendous potential in terms of innovation and creativity. We can only imagine what lies ahead for this exciting new space!
What is Decentralized Finance (DeFi)?
When it comes to money, we like to think of ourselves as independent individuals. We work hard for our money, and we deserve to keep as much of it as possible. But the truth is, most of us rely heavily on financial institutions like banks, which act as intermediaries between us and our money.
We deposit our money into banks, lending it to other people and charging us interest on the loans. We also have to pay fees for things like ATM withdrawals and wire transfers. And if we want to invest our money, we have to give a chunk of it to a financial advisor.
But what if there was a way to cut out the middleman and take control of your own finances? That’s where decentralized finance (DeFi) comes in.
What is DeFi?
DeFi is a movement sweeping the cryptocurrency world that enables users to take control of their finances by using decentralized applications (dapps) built on Ethereum. With DeFi, you can borrow and lend money, trade cryptocurrencies, and earn interest on your digital assets without going through a traditional financial institution.
Or, the more conservative definition: DeFi is a suite of decentralized applications (dApps) that allow users to create and trade financial instruments without relying on third-party intermediaries. This could mean anything from creating and exchanging tokenized assets to borrowing or lending money.
As an Artist, Why Should I Care?
If you’re an artist or creative professional, you know how difficult it can be to access capital. Banks are often reluctant to lend money to people in the creative industries because they’re seen as high-risk borrowers. However, with DeFi, which acts through the so-called DAOs – Decentralized Autonomous Organizations – you can use a collective approach to collateralizing your crypto assets and taking out a loan in stablecoins that are pegged to the US dollar. This could be the way to fund your next project.
And if you’re looking for a place to store your borrowed stablecoins or other digital assets, look no further than TRASTRA – a multicurrency wallet that lets you store your crypto holdings quickly. With TRASTRA, you can choose from various assets, including BTC, LTC, BCH, XRP, ETH, USDC, and USDT, and use them on platforms for staking your crypto to earn yield or get a project financed.
What are the Benefits of DeFi for the Creative Class?
The benefits of decentralized finance (DeFi) are clear when it comes to cryptocurrency. But how can DeFi benefit artists and other creative professionals? Here are explore some of the ways that DeFi can help the creative class achieve their financial goals:
Access to cheaper and more flexible financing
With DeFi, creators and artists can tap into a range of different financial instruments to fund their work. This could include anything from borrowing or lending money to creating and selling tokensized assets. The great thing about DeFi is that it offers a much more flexible and affordable financing option for creators and artists.
Increased autonomy and control
DeFi also gives creators and artists more control over their work. With traditional finance, creators and artists often have to rely on third-party intermediaries to get their work financed and distributed. However, with DeFi, they can cut out the middleman and take full control of their work.
Greater exposure to a global audience
Another benefit of DeFi is that it gives creators and artists greater exposure to a global audience. With traditional finance, creators and artists are often limited to working with local or regional audiences. However, with DeFi, they can reach a global audience through a variety of different platforms and marketplaces.
More opportunities for collaboration
DeFi also opens up new opportunities for collaboration between creators and artists. With traditional finance, it can be difficult for creators and artists to find collaborators who share their vision. However, with DeFi, they can easily connect with like-minded individuals from all over the world.
Increased security and transparency
Finally, DeFi also offers increased security and transparency for creators and artists. With traditional finance, creators and artists often have to deal with a lot of red tape and bureaucracy. However, with DeFi, all transactions are transparent and stored on a public blockchain. This makes it much easier for creators and artists to keep track of their finances and ensure that their work is secure.
How do I “DeFi” My Art Career?
I bet you think to yourself something like this, all the time: “I’m a creative professional, an artist. How do I start with DeFi, create my first NFT and take advantage of decentralized finance to find new clients and widen my audience?” As an artist, you’re used to thinking outside the box. From creating non-fungible tokens (NFTs) to taking advantage of digital wallets, DeFi offers a world of possibilities for creative professionals. Here’s how to get started.
How to Get Started with DeFi
If you’re ready to start taking advantage of decentralized finance, there are a few things you need to do first.
Choose a digital wallet
You’ll need somewhere to store your digital assets, so choose a digital wallet that meets your needs. it’s fairly easy to get started, and there are many different wallets out there, so do some research and decide which one is right for you.
You’ll need some cryptocurrency (a good place to start is buying some ETH, USDC or USDT – these are ERC-20 tokens that run on the Ethereum blockchain, as do most of the deFi protocols) to use most DeFi platforms. (TRASTRA now supports TRC-20) If you don’t already have any crypto, TRASTRA can help you with that.
Once you’ve got those two things taken care of, you’re ready to start exploring the world of DeFi! Check out some of the popular DeFi protocols, such as MakerDAO, Compound, and Dharma and see how they can help you achieve your goals as an artist.
How to Create and Post Your First NFT
So you want to get in on the Non-Fungible Token (NFT) craze. Maybe you’ve seen some headlines about people selling digital art for millions of dollars, or you’re just curious about this new technology and what it can do. You’ve come to the right place because it can do a lot for you as a creative professional.
What is an NFT?
Before we get started, let’s go over what an NFT is. An NFT is a digital asset that is stored on a blockchain. This makes it unique and allows it to be traded or sold like any other asset. Unlike other digital assets, though, an NFT can’t be replicated or divided. This makes it perfect for things like artwork, music, or videos.
Creating Your NFT
Now that you know what an NFT is, it’s time to create your own! The first thing you’ll need is a blockchain platform that supports NFTs. There are a few different options, but the most popular one is Ethereum. Once you’ve chosen a platform, you’ll need to create an account and connect it to your wallet.
Once your account is set up, you can start creating your NFT. The process will vary depending on which platform you’re using, but you’ll need to upload the file you want (for example, an image or video) and add some metadata. The metadata is important because it helps identify your NFT and determines how it will be displayed on the blockchain.
Posting Your NFT
Now that your NFT is created, it’s time to post it! Again, the process will vary depending on which platform you’re using. Once you’ve found the right place to post your NFT (usually, this will be a marketplace specific to the blockchain platform you’re using), you must select your NFT and choose a price. That’s it! Now all you have to do is wait for someone to buy it.
The Risks of DeFi for a Creative Professional
DeFi has unlocked a new world of opportunity for those looking to get the most out of their creative vigor. However, as with any new technology, there are always risks involved. Here they are:
The first risk is that of “rug pulling”
This is when a project creator decides to exit a scam, taking all the project’s users’ funds. We’ve seen this happen time and time again in the traditional financial world, and it’s only natural that it would happen in the DeFi space as well. While rug pulling is certainly a risk worth considering, it’s important to remember that not all projects are created equal. Many reputable projects out there with strong communities behind them are unlikely to pull an exit scam.
This is the risk that you won’t be able to convert your assets back into cash when you need to. This can happen for several reasons, but the most common one is that there simply aren’t enough buyers for your asset at the price you’re looking to sell it at. While this risk can certainly be mitigated by doing your research and only investing in well-liquidated assets, it’s still worth considering before diving headfirst into the world of DeFi.
This is the risk that the person or entity you’re dealing with will default on their obligations. In the case of DeFi, this typically happens when someone takes out a loan and cannot repay it. While this risk can be mitigated by carefully choosing who you lend to or borrow from, it’s still worth keeping in mind before getting involved in any transaction.
So, what does that have to do with you as a creative professional? Well, there are a few ways that DeFi can benefit you. For example, if you’re looking for funding for a new project, you could use a decentralized lending platform to take out a loan in ETH against your future earnings. Or, if you create digital artwork or music, you could tokenize your creations and sell them on a decentralized marketplace. And because all transactions on the Ethereum blockchain are stored immutably on the blockchain, you can rest assured that your transactions will be safe and secure.
You can use a decentralized lending platform to take out a loan in ETH against your future earnings. This can be used to fund a new project or venture or tokenize your artwork or music and sell it on a decentralized marketplace. This allows you to monetize your creativity in a new way.
You can use decentralized exchanges (DEXes) to trade crypto assets without going through a traditional exchange. This can be used to speculate on price movements or simply to diversify your portfolio.
Overall, Decentralized Finance (DeFi) offers many potential benefits for artists looking for new ways to fund their projects or ventures. By understanding how DeFi works and utilizing some of its key features and applications, you can give yourself a leg up in today’s ever-changing digital economy.