The numbers of DeFi and its inclination in popularity truly speak for themselves. This is also agreed upon by Do Kwon, as his thoughts on the value of DeFi are insightful. He is, after all, the co-founder and CEO of Terraform Labs, which specializes in creating financial apps and also the cryptocurrency Terra.

Over the course of just 2020, the total value locked (TVL) has increased by 20X and has gained a mass user base of over a million people. It's safe to say that DeFi is the frontier of choice for individuals wishing to invest in alternative channels. But, as a beginner, you must be asking yourself, “How to invest in DeFi?” Well, we are here to tell you all about it.

As an investor, if you are looking to diversify your portfolio and invest in DeFi, this guide is for you. In this blog, we will provide you with guidance when it comes to turning those big dreams of yours into action.

Before discussing how to invest in DeFi, let’s start off slow. First of all, DeFi is short for Decentralized Finance.

This digital financial investment asset is named DeFi because it is built on blockchains. Blockchains are distributed databases used to record transactions without being controlled or administered by a central authority. As a result, they're decentralized, as are the protocols that rely on them.

This brings us to the protocols of DeFi. Protocols are what are referred to as "smartcontracts." They are transaction-specific code-based agreements that allow people to trade cryptocurrency, partake in liquidity pools, lend and borrow cryptocurrency, and more.

Now that you know all about the fundamental terminologies relating to DeFi, it is time to discuss its existence and how to invest in DeFi.

First, let's talk about what makes it so interesting and valuable.

The reason why DeFi is so popular among its users is that allows people to trade without the need for traditional brokers.

But, why does that matter? Financial transactions become faster, more inexpensive, more transparent, and most importantly, more accessible when you don’t have the gatekeeper’s constant policing, unnecessary processing, and additional fees at every turn.

You will be able to invest without the need to meet a certain minimum asset threshold. You’ll also be able to take out a loan with little to no paperwork.

DeFi allows average investors to have access to new asset classes, lower costs, enhanced rates, and gain greater control over their financial future.

Now, it's time to learn how to invest in DeFi. It is important that your know the step-by-step guide in order to invest without any kind of hassle.

You're off to a strong start if you're intrigued by all the possibilities DeFi offers. But isn't that the most difficult part? The difficult part comes when it comes to making those opportunities a reality.

Although if you know which actions can be taken and which resources can be used, this process may be made rather simple to achieve.

So, let's get started and learn the amazing details on how to invest in DeFi, an amazing financial asset, and grow.

Your digital wallet is a storage location for the crypto currencies you'll utilize to engage in DeFi protocols.