How Blockchain is Disrupting the Future of Wealth Creation, from DEXs to APYs
The impact of blockchain technology on wealth creation is often underestimated. Democratized access to financial products and services is one side of the equation. The other benefit is access to far more lucrative APYs than bank accounts and other traditional vehicles, paving the way for a much-needed wealth shift.
It All Starts With A Balanced Portfolio
Before one can even consider the concept of wealth creation, it is important to start with the basics. Wealth does not come out of thin air and will require upfront investments. The more diversified one’s investment portfolio is, the better off the person will be. Finding the right industries and niches to invest in can be rather tricky, although doing some initial research will often field favorable results.
Every investor will have different expectations of their portfolio. Some will focus more on direct value investing, whereas others will invest in projects with future growth or current momentum. There is also dollar-cost averaging, a method that can be incredibly powerful for cryptocurrencies, as it brings the average investment cost down over time.
More often than not, slow and steady will win the race. One of the primary selling points of cryptocurrencies is that they present a new investment option to every person on the planet. Traditional investment options are usually either off-limits or only available in small quantities to the everyday person. Cryptocurrencies operate on a free market principle, changing the entire narrative for the better.
A recent interview with 3iQ Digital Assets President Chris Matta illustrates the opportunities cryptocurrencies and blockchain present. Investing in the space can remain tricky due to a lack of professionally managed investment solutions. However, consumers can make all the important decisions themselves, even if they involve more work. As more asset management supporting cryptocurrency becomes accessible, the wealth creation balance will continue to shift toward the consumer who needs it the most.
The Importance of Exchanges
To facilitate the shift in wealth creation, cryptocurrency needs convenient “gatekeepers.” In the current landscape, those gatekeepers exist as exchanges, either centralized or decentralized trading providers making the acquisition and diversification of cryptocurrencies more straightforward. However, an exchange is no longer just a trading platform, as they provide access to many other aspects of the blockchain industry.
Every self-respecting cryptocurrency exchange will provide its users with new wealth generation tools. Whether that is through staking, providing access to new token launches, liquidity provision, yield farming, or other means, all of these tools can help users generate wealth. Moreover, the recent advent of gamification streamlines access to these products and services and makes them far more approachable by those unfamiliar with the jargon or technicalities.
This extra functionality paves the way for exchanging and trading platforms to remain at the forefront of modern-era wealth creation. Users don’t even think about interacting with blockchain technology as they explore these options. Instead, they see a convenient interface that provides tremendous functionality and opportunity. The user experience means the difference between wealth generation and not exploring these options ever again. Thankfully, most exchanges do a good job on that front.
That said, even widely successful CEOs like Changpeng Zhao of Binance acknowledge there is more room for progress. He is using a vast portion of his wealth to give back to the community and cryptocurrency enthusiasts. That is done through traditional charity donations but also by enhancing Binance and the products and services under its banner.
An Ongoing Evolution
The role of exchanges – both centralized and decentralized in wealth creation will become more outspoken over time. AdaSwap, based on the Cardano blockchain, has multiple core business models to help users achieve a degree of wealth creation. Ranging from a decentralized exchange – with passive income opportunities such as staking, yield farming, and zero transaction fees through $ASW – to NFTs and a launchpad, users can diversify their portfolio and generate wealth through various opportunities.
Moreover, every new trading platform tends to provide a never-before-seen solution. For AdaSwap, that feature is stake-and-forget: a fixed, long-term liquidity pool with staking opportunities. Users will receive traditional APY rewards and bonus tokens airdropped by the AdaSwap team to help users create a diverse portfolio. Gaining access and exposure to many new projects over time by providing liquidity is an appealing concept enabled by blockchain technology. Moreover, it unlocks a much higher APY compared to keeping funds in a bank account or investing in stocks, bonds, or precious metals.
Moreover, the Free Finance Model (FFM) is an exciting concept in the blockchain industry. Through the $ASW token, AdaSwap reduces all costs associated with using its platform or its various services. There are no participation, transaction, or trading fees, yet token holders are eligible for airdrops. Its token is also interchangeable with other assets on Cardano, creating new trading pairs and markets.
The balance of power regarding wealth creation is slowly tipping in favor of consumers seeking out new opportunities. But, more importantly, the role of blockchain technology in these proceedings cannot be ignored, as it democratizes access to products and services – and returns – not found in traditional finance.
Additionally, the role of [de]centralzied exchanges as gatekeepers for wealth creation becomes more apparent. By providing users with direct access to blockchain-based products and services through a convenient user experience, they help shape the future of wealth creation unlike ever before.