New to DeFi? Start Here!

TL;DR (30‑second summary)

  • DeFi = financial services on blockchains, run by code (smart contracts) instead of banks.
  • You’ll use a wallet (your account), a DEX (swap), and maybe lending/staking.
  • Start tiny, double‑check every screen, and learn to undo what you did.
  • This page gives you: safety rules, tools, what to try first, and deeper explainers.

⚠️ Not financial advice. Treat everything here as education. Never risk money you can’t afford to lose.

Safety First ⚠️read before doing anything⚠️

  1. Seed phrase = master key. Write it on paper, keep offline. Never screenshot. Never share.
  2. Start small. Use tiny amounts to learn. Consider a testnet if available.
  3. Check URLs + permissions. Only use official sites; revoke strange approvals.
  4. Beware of fake tokens & scams. Verify contract addresses from official docs.
  5. Understand the risks (see [Risk Cheat‑Sheet](#risk-cheat-sheet)). Smart‑contract bugs and stablecoin depegs happen.
  6. Have an exit plan. Know how to reverse: withdraw → swap back → bridge (if needed).

Quick 5W1H refresher

  • What: Bank‑like functions without banks (swap, lend, borrow, earn).
  • Who: Anyone with internet + a wallet.
  • Where: On blockchains via apps (“dApps”).
  • When: 24/7/365. No banking hours.
  • Why: Open access, transparency, self‑custody.
  • How: Wallet connects to a dApp → smart contract executes the rules.

Tools You’ll Need

  • Wallet: e.g., MetaMask (EVM) or Phantom (Solana). Create, back up seed, set a tiny daily limit.
  • Network fees: Keep a small amount of the network’s native coin for gas (e.g., ETH, SOL, MATIC).
  • Explorer: Etherscan / Solscan to verify transactions and token contracts.
  • Security helpers (optional): Approval manager, phishing blocker, hardware wallet later.

Diagram brief: “First Week in DeFi” — Wallet ↔ DEX ↔ Lend/Staking, with fee bubbles and a red “Revoke approvals” box.

Your First Hands‑On (20‑minute demo)

Follow this tiny loop with pocket change (or testnet when possible):

  1. Set up wallet → back up seed.
  2. Do a tiny swap on a reputable DEX.
  3. Supply a small amount to a lending market.
  4. Review receipts on the explorer.
  5. Undo everything: withdraw → swap back.

👉 Guide: Try DeFi Safely in 20 Minutes: Wallet → Swap → Lend
Link: /do/defi-in-20-minutes

Learn Path (read in this order)

  1. What Is a DeFi “Yield Vault” (in Plain English) — what they do, fees, and risks.
  2. How DEX Liquidity & Fees Pay LPs (Without the Math Headache) — pools, AMMs, and impermanent loss.
    Link: /learn/dex-liquidity-fees
  3. Solana DeFi in Plain English: Why It Feels Fast — UX differences, same core risks.
    Link: /learn/solana-defi-plain-english
  4. Risk Framework for Retail in DeFi — practical checklist before depositing anywhere.
    Link: /learn/defi-risk-framework

Tip: After each article, add one new action to your 20‑minute loop to build muscle memory.

Common Actions (plain‑English quick takes)

  • Swap/Trade (DEX): Exchange one token for another directly from your wallet. Fees go to LPs.
  • Lend: Supply tokens to earn interest; others borrow with collateral.
  • Borrow: Lock collateral to get a loan without selling your asset.
  • Stake: Support network security (PoS) and earn rewards.
  • Liquidity Provide (LP): Deposit token pairs into a pool; earn trading fees (mind impermanent loss).
  • Yield Farm: Move assets to where rewards are highest; higher effort, higher risk.

Risk Cheat‑Sheet

Contract risk: Bugs/exploits in the code.
Protocol risk: Governance mistakes, oracle issues.
Market risk: Volatility, liquidation risk when borrowing.
Liquidity risk: Can you exit at a fair price?
Stablecoin risk: Peg can break.
Operational risk: Phishing, lost seed, wrong chain/contract.

5‑Point Pre‑Check (before any deposit):

  1. Read docs & audits • 2) Check TVL trend • 3) Understand fees/lockups • 4) Verify contract on explorer • 5) Test withdrawal with a tiny amount.

FAQs

Is DeFi safe? No system is risk‑free. You can reduce risk by starting tiny, using reputable protocols, and learning to undo actions.
Can I do DeFi without KYC? Many dApps don’t require accounts; your wallet is your account.
Do I need thousands of dollars? No. Start with lunch‑money amounts to learn.

Weird Word of the Week (mini‑dictionary)

  • Impermanent Loss: Temporary value gap LPs face vs. just holding.
    Read: /dictionary/impermanent-loss
  • Slippage: Price moves during your swap; set a reasonable tolerance.
    Read: /dictionary/slippage
  • APR vs. APY: Simple vs. compounded yield.
    Read: /dictionary/apr-vs-apy

Format note: Keep each mini‑dictionary post ~300–600 words, with a single example and 2–3 internal links.

Download: DeFi Safety Checklist (1‑pager)

  • Seed/keys storage
  • Contract/address verification
  • Fee & APR sanity check
  • Exit plan (withdraw/swap back)
  • Post‑action review on explorer
    CTA: “Get the PDF” (email capture)

What to Do Next

  • Do: /do/defi-in-20-minutes
  • Learn: /learn/what-is-yield-vault
  • Subscribe: newsletter block here
  • Hire / Case Study: /hire — 3 best posts + your 30/60/90‑day content plan