Germany’s inflation rate has reached a new high of 7.3 percent. The main reason is the skyrocketing energy costs caused by the Ukraine-Russia conflict. Experts are certain that we will not be able to eliminate the price increases in such a short period of time. How can investors safeguard their assets?

Investing in the field of decentralized finance is a lucrative and relatively new way to make money (DeFi). It was founded in 2017 and has been thriving for the past two years. DeFi is an alternative and decentralized financial system that is accessible to anyone who has internet access. It combines a dense network of blockchain-compatible protocols, decentralized apps, and platforms. Hundreds of services are now available. Over 80 billion US dollars in assets are managed by the group as a whole (Total Value Locked, abbreviated TVL).

It’s all about code in DeFi. Money in the form of cryptocurrencies is coded in such a manner that it performs different activities virtually automatically, such as lending and borrowing, with the assistance of so-called smart contracts. This improves efficiency by removing intermediaries (such as traditional banks) from the equation.

The issue is that most systems are rather difficult, unpleasant to users, and require extensive training and technical knowledge. There are, however, new options for beginners to invest in DeFi. There is little or no prerequisite knowledge necessary here. We will introduce the two most crucial service providers: Nexo and Nash

Caution: DeFi is still a high-risk asset that is poorly regulated by the government. 1) DeFi providers are common targets for cybercriminals. They stole nearly a billion dollars in 2021 alone. However, half of it was retrieved. 2) A severe market crash or a sharp drop in the value of a loaned cryptocurrency might jeopardize the invested funds. Nash and Nexo have not suffered any losses thus far and are regarded as safe thanks to specific safeguards. However, you should only spend what you are ready to lose.

1) DeFi without crypto knowledge with Nash

Download the app, set up an account, choose a bank, deposit money, and you’re now earning interest at up to 13% per year via Nash. With the Nash Earn option, the Dutch ISP makes it especially simple to join in on DeFi. The start-up has been in operation since 2018, is run by former PayPal personnel, and has been working with European state regulators since its founding. Nash has received an average rating of 4.5 stars in the Google and Apple app stores thus far, albeit just from a thousand users.

The software is very user-friendly, connecting users to two of the largest and most dependable DeFi providers, Aave and Anchor. The benefit is that you don’t have to utilize the difficult platforms yourself, and you don’t have to know anything about cryptocurrency. Nash assumes command of the service. Users merely need to deposit the required amount through their bank for a tiny cost (less than 1%), and they will obtain the relevant DeFi platform tokens with which they will earn interest. They can also be paid in cash with ease.

Nash Earn presently provides two choices. Both rely on stablecoins, which are pegged to the US dollar. Anchor is built on Terra, whereas Aave is built on Ethereum. Here is our guidance on how to acquire such cryptocurrencies on an exchange like eToro. Interest rates can change somewhat; presently, they are 3% (Aave) and 13% (Anchor). The anchor is affected by the following: Those that invest independently through the site earn a 20% return.

Nash’s platform is submitted for a security review (audit) on a regular basis, and Anchor and Aave do the same. None of the platforms have been hacked or suffered a total loss. Nonetheless, the above-mentioned risk factors still apply.

2) Make your crypto work for you with Nexo

Nexo is regarded as a pioneer in the DeFi industry, having entered the market in 2017. The app is currently used by over four million users, has received five stars on Trustpilot, and has received thousands of good ratings in app stores. Nexo works with state regulators as well, although it operates globally. The system operates in a somewhat different manner than Nash, although it is not significantly more sophisticated. While Nash provides simple access to DeFi platforms such as Aave and Anchor, Nexo provides its own DeFi service.

You must either hold one of the 38 cryptocurrencies or purchase them from Nexo. Then you’ll need a Nexo account. Your tokens may be lent on the site and earn interest, which is now up to 17 percent. If you choose, you can get paid on a daily basis.

The Nexo security check was performed by the Armanino firm. It protects, among other things, the huge US crypto exchange Kraken and Uber. It also has about $335 million in damage insurance. Nexo has never been hacked thus far. There was no total loss either. The platform also weathered the 2017 crypto meltdown. However, there is also a chance of loss here.