Last week the financial world had to face revolts from small investors, which even led to a complaint filed against one of the biggest trading platforms, Robinhood. The platform is accused of denying them the right to use the service and taking away the possibility of potential gains. “Amateur investors”, a rising force in the markets lately, cheered each other to acquire several companies’ stock on social media, and the result was sensational. GameStop Corp. and AMC Entertainment Inc. finished for their best week ever.
GameStop stock started at $18 in January, and reached $340 last Friday, thanks to these retail investors. As small investors kept on buying more shares, around late Thursday some online trading platforms like Robinhood and many more announced they would permit limited buying of volatile stocks for the moment. Needless to say, a lot of people got really angry about this limitation.
They either could keep their stocks or proceed to sell them, but they weren’t authorized to buy more. The stock pricing began to decrease, and once more these investors felt like mainstream finance is influenced to benefit the rich and powerful.
Many of these traders are now searching for other options, and their eyes have turned to DeFi.
Ethereum’s decentralized finance sector is rising and could be the solution to the problems small investors are facing. It is open to anyone, not controlled by any authority, and reachable globally.
Most importantly: you won’t need to be concerned that a centralized company may block you from buying or selling stocks.
To get started into Ethereum, you’ll only need to follow some easy steps:
- Open an account on an exchange platform.
- Purchase your ether (ETH), the cryptocurrency used by Ethereum.
- Store your tokens in a digital wallet.
- Now you can use DeFi applications directly from your browser.
DeFi, which is the short term for “decentralized finance” is the complete opposite of the traditional finance we all are so familiar with. These centralized companies are sometimes nontransparent or permissioned, and DeFi can make things change. If you want to learn more about how DeFi can help you in your everyday investments, read our article https://coin-ed.org/defi-and-market-cap/