Yearn.finance (YFI) Purchase Guide - Tutorial

As the native token of the DeFi platform yearn.finance, YFI has helped shape the crypto year 2020. The price of YFI multiplied within a few months, which is mainly related to the concept of yearn.finance. Here we explain where and how you can buy YFI and what is behind yearn.finance. With our link to Binance you save another 10% in fees.

YFI and yearn.finance focus on so-called decentralized finance (DeFi) and initially radically simplified loan transactions with crypto currencies. The project was launched in mid-July 2020 with a series of blog posts by crypto developer Andre Cronje. He did not want to reinvent DeFi, but he wanted to drastically improve the user experience. In order for his platform yearn.finance to attract liquidity, he offered YFI as a reward for early participants.

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Thus yearn.finance laid the foundation for continued success. Only 30,000 YFI were generated, which are now completely in circulation. As a result, YFI quickly became a sought-after asset as a share in yearn.finance. In mid-August 2020, YFI was still trading at less than 5,000 US dollars and then took a bull’s ride towards 40,000 US dollars. Meanwhile, Cronje has relinquished much of the responsibility for the project, whose path is now determined by majority decisions of the shareholders.

How to Buy YFI – Summary

  1. 1. Register with Binance
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  1. 2. Deposit via  Credit Card, Wire Transfer or Cryptocurrency
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  2. 3. Now you can buy YFI directly

YFI (yearn.finance) Buy Guide

In order to buy YFI, you must select a crypto exchange. It is important that the provider is reputable and has the highest possible volume when trading with yearn.finance. Only then will fair market prices for YFI be formed in real time. Binance as the world’s largest crypto exchange meets these criteria and scores with low fees.

How to buy YFI

In order to get started with Binance, you need a customer account. You can open it online in a few minutes by entering your e-mail address and setting your password. You will receive an e-mail from Binance with a link to the confirmation – that’s it.

With the simple customer account with Binance, you can deposit crypto-currencies and withdraw up to two Bitcoin or other crypto-currencies of this value daily. No confirmation of identity is required for this. If you want to buy your FYI with Euros and later transfer any possible winnings to your bank account, you still need to take the step KYC (Know Your Customer) as the identity verification with Binance. For this purpose, the scan of your identity card or passport is uploaded and the address is confirmed by a current document like invoice or bank statement. Binance then checks this and usually activates your customer account completely after a few hours.

Pros and Cons Binance

What are the payment methods for purchasing YFI?

Binance offers three ways of replenishing the customer account with credit: Credit card, bank transfer or crypto. Here are the advantages and disadvantages:

  • Credit Card
  • Wire Transfer
  • Cryptocurrencies

Buy YFI with Credit Card

 

Binance charges an impressive three percent fee when depositing euros into bank accounts by credit card. This is therefore the most expensive option, but also the fastest.

 

Buy YFI via wire transfer

 

If you transfer Euros from your bank account to Binance, the fee is only 0.50 Cent. But you usually have to wait two banking days for the credit to appear.

Buy YFI via Cryptocurrencies

 

Without an identity check, you can deposit Bitcoin and other crypto currencies into your customer account with Binance - that's a plus. Simply scan the QR code of the destination address from Binance and initiate the transfer from your wallet. When the coins are credited, Binance will send you an e-mail.

Purchase of yearn.finance (YFI) from Binance

You should now have a plus on your Binance account and can start buying yearn.finance. Click on “Markets” in the top line of Binance and enter “YFI” in the search field. Now you can see which currency pairs Binance supports for YFI.

You cannot buy yearn.finance directly for Euro at Binance yet. Instead you can choose Bitcoin (BTC), Binance Coin (BNB) or one of the Stablecoins Tether (USDT) or Binance USD (BUSD). You can get them for Euro immediately under “Fiat Markets”.

Now back to your chosen currency pair for YFI and click on “Trade”. This will take you to the actual website for trading. There, YFI’s price curve dominates the screen in the middle, with order books on the left and trades executed on the right.

The field below the price curve is decisive for you. Here you enter under “Buy” the number of YFI you would like to buy. Of course it is possible to buy not just one whole YFI, but also 0.1 YFI or even smaller units. If you choose “Market” for your buy order, it will be converted to the market price immediately. If you click “Limit”, you set your purchase price and usually have to wait until this target price is reached.

Now go to the currency pair of your choice for Chainlink (LINK) as described above and click “Trade”. Now the actual trading platform at Binance appears, with the price curve at its center. To the left of it are the order books, to the right are the trades that have been executed, and price information on other crypto currencies.

The relevant order field is placed below the price curve. There you enter under “Buy” how much link you want to buy. With the option “Market” you buy LINK immediately at the current market price. At “Limit” you set the price if you want to wait for a target price.

Sale of YFI at Binance

When the time comes to sell your YFI again, it is as easy as buying it. Under “Sell” you decide on the amount, currency pair and “Market” or “Limit”. Once the trade is completed, you will be credited in Bitcoin or Tether (USDT), for example, and if you want to transfer the funds back to your bank account in Euros, you will first sell the coins under “Fiat Markets”. Then you can request the transfer in Euro to your bank account.

Video Tutorial

You can find a video how you can buy and sell YFI here. 

Should I buy yearn.finance (YFI) now?

DeFi is at present the Top Topic number one in the Kryptobranche and YFI as an outrider one of the Profiteure of this trend. The protocol of yearn.finance has proven to be stable and secure, the user friendliness attracted enormous liquidity. YFI is virtually the icing on the cake of this innovative platform.
yearn.finance has already expanded its portfolio to include DeFi transactions in the insurance sector and is basically able to outperform imitators. Analysts also emphasize the support of well-known investors for yearn.finance, who are making their entry into the DeFi business.

However, the competition is not sleeping; SUSHI and SushiSwap, for example, were able to withdraw liquidity from the DeFi stock exchange Uniswap. But yearn.finance, with the inclusion of other DeFi projects such as Compound and Aave, is currently ahead of the competition and YFI is the expression for this position.

The deliberate and artificial setting at only 30,000 YFI means that this token remains rare. As long as yearn.finance stands out from the competition in terms of technology and its range of products, further price gains are also quite possible with YFI. If yearn.finance loses liquidity, this could be interpreted as a warning sign for YFI as well.

Which wallet to use for yearn.finance (YFI)?

yearn.finance is technologically based on the Ethereum block chain and therefore, like all ERC-20 tokens, can be easily stored on a software wallet. MetaMask is a popular solution in Ethereum’s ecosystem because it integrates a browser optimized for DApps. For daily trading with YFI at Binance, the Trust Wallet is recommended.

 

However, if you think long term, you should not trust your YFI and other crypto currencies to a software wallet and expose them to the risk of hacks. A hardware wallet as a storage location shielded from the Internet is the most secure solution for YFI, Bitcoin and Co. With Trezor and Ledger, two manufacturers of hardware wallets have established themselves as market leaders for years. In our opinion, the Ledger Nano S as an entry-level model and the Ledger Nano X as a flagship model are the slightly better choice than Trezor’s competitors because they are easier to use.

Ledger Nano X

Conclusion

With yearn.finance and YFI, DeFi has taken big steps towards a broad usage. By the way, YFI is more than just an object of speculation and participation in yearn.finance. As a governance token YFI also fulfills the important function of co-deciding the future course of yearn.finance. Considering the speed at which DeFi is attracting liquidity and opening up new fields, YFI and yearn.finance have good prospects for the future. As a highly demanded coin with partly very volatile price developments, YFI is also a very exciting instrument for day traders.

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