You could live without any banking system at all

TLDR

One day, someone said that Google is the internet. From then, every body started believing that everything outside google is the dark web.

While in fact, it’s just the real, raw internet … created by people …

In this topic, we’ll shortly talk about why leaving bank is so important.

How to hold 100% of your money while still being safe (more safe than if you held € on your bank account, or even on binance).

And how making this change could completely change your vision of society, governements and financials opportunities (yes you can go that far).

This article is for people that own crypto currencies but are scared or worried (or even unaware ??) about testing decentralized product.

I want to initiate you to this exceptional movement.

The second part is technical and will guide you to this new world. It’ll give you the basis to discover all the opportunities that are in front of you, and that you can’t touch yet.

At the first version of this topic, I wrote a long speach about why banks sucks, why they’re stealing your money and why you should leave them.

But I guess you all knew that they play with your money and just do whatever they want while leaving your with 0.75% annual interest …

This sucks right ?

Crypto was born to fight that, did you know it ?

But guess what. There is a trojan horse INSIDE crypto itself ! This is named « centralized exchange ». Yes. Everything a bank does, they do the same, but with crypto (pretty ironic right …).

I am here to explain you how to leave their hold forever. The basis of crypto is to manage your money at its core. You can do everything bank does, by yourself, on your own, without anyone telling you what you can do and what you can’t.

No one ever telling you can’t get a loan.

No one ever telling you can’t withdraw your funds.

No one ever telling you can’t sell your GME stocks.

You will also discover many different ways to invest your money and make it work.

There are plenty of opportunities you don’t know yet !

Let’s see how you can start discovering that world.

Before today, you always needed an bank, an application (like paypal, N26) to manage your money. After this topic, you’ll be able to free yourself from these entities that steal your money and use it to their own advantage.

This topic require the basic knowledge of blockchain, like :

  • How can blockchain guarantee the safety of your fund
  • How are transaction made
  • all the other basics …

Then, I will unboard you to the true use case of blockchain, so that for the first time of your life you really own your money.

First you’ll have to install metamask :

Explanation of metamask

Metamask is a browser extension used to help users to interact with Ethereum.

By « interacting with ethereum », I mean just moving your money around, using it, transfering it, earning interest on it, etc … Just like you would use your banking app and make a withdraw.

This is very usefull because it make transfering money very easy while staying safe.

Let’s start the decentralization of your money :

Step 1 – Download the metamask Extension

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  • Then click on « Install Metamask on Chrome » (or any navigator)

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  • You’ll then be redirected to the add on extension installation page (see below), and click on « Add to Firefox » image

  • Click « add »

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  • You’ll then be redirected to this page :

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  • Click « Démarrer »
  • And as you’re new, click on « Créer un portefeuille »

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Then click on « I agree ». Metamask has to listen to click even on your browser. Because if you want to transfer your money, you have to click somewhere right ?

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Then you’ll have to create a password. This password has nothing to do with your private key. It will be the password to open metamask when you start your computer. So that if someone has access to your computer and want to use metamask, he will not be able to use it (unless metamask is already opened)

  • Enter a secret password
  • Then you’ll be redirected here :

This page is very important. You’ll be gifted a mnemonic phrase. This phrase hold both your public and private key. Metamask created it so that its easier to have access to your account.

Each account has its own mnemonic phrase. So if you loose it, you loose your account.

If someone has access to it, he’ll have access to your account. (I’ll give ways to store the mnemonic securely)

So click on the locked area to reveal your mnemonic phrase and write the words on a piece of paper (not on your computer, because what if one day you download a virus, and that virus has access to your document ? He also has access to your mnemonic phrase), so write it on a piece of paper IN THE RIGHT ORDER.

Once it’s done, click on « suivant »

  • Then you’ll ave to confirm your mnemonic phrase, juste to make sure you stored it properly and still have access to it. So click on the words you wrote, in the write order to continue. Once it’s done, click « confirm »
  • You’ll end up here

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Click « Tout est terminé »

  • Then metamask will ask you if you want to make a swap, just exit because their swapping protocol is more expensive than it should be

Here is your metamask account !

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If you click here :

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And then here :

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You’ll be redirected on your own etherscan :

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Etherscan is a website that record and show every transaction made on ethereum. By following this procedure, you’ll be able to see all of your transaction on the ethereum blockchain.

Now, to be decentralized, you need to transfer your money from centralized exchanges to your metmask account.

Lets take the example with binance :

Start by connecting then click on wallet :

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Then click Fiat and spot :

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Now that we arrived here, I have to explain you something very important. Pay attention.

I actually showed you how to create an ethereum account. On this ethereum account, you can’t transfer every crypto that you hold on binance. You can only transfer specific type of crypto.

On the account you just created, you can transfer only ethereum, erc20, erc721 and erc1155 (sorry, this is a little bit technical, don’t worry too much about the names).

To check if your crypto is allowed to be transfer on your metamask account, the procedure is very easy.

  • Go to coingecko.com
  • Then search your crypto in the search bar
  • After clicking on it, you’ll end up on this configuration :

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You can see here that the contract has an ethereum logo. This mean that this token have been created on the ethereum blockchain, and that you can store it on an ethereum address.

For example, if you find someting like this :

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You can see that there is no contract, so you can’t transfer it on your ethereum account. DOGE for example can’t be stored on an ethereum wallet, but has to be on another wallet.

Ok, check for every token you have if they can be stored on a metamask account. Don’t hesitate to ask question if you have any.

Now, I’ll keep transfering my money with the ethereum example :

Click on withraw on the currency you want to withdraw :

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You’ll be redirected here :

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You first have to enter your own ethereum address. Remember, your eth account is provided a public adress and a private key (which create your mnemonic phrase).

To know your public key, go to your metamask account by clicking on the extension like this :

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You’ll then see a popup like this one :

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And by clicking on your account, it will copy your eth public address. A good reflex to have is to check the 4 first and 4 last letter of the address you pasted, just to make sure it’s the right one.

Paste it on your binance account here :

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Then click on ETH ERC20 for the transfer network (if you transfer eth or erc20 only).

Note that you also have Binance chain and Binance smart chain. I don’t want to go into details, but this is an example of another blockchain where you can transfer your money to.

Then enter the amount you want to withdraw (for example : all) and then click submit.

Your transaction will be proceeded by the network and after few minutes should arrive in your metamask account like this :

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GG you made your first transfer on a decentralized network.

NOTE : When you make a transaction, you have to pay a fee to the network. You don’t see it, but some people actually check every transaction, just to make sure there is no fraud,. They check if any one sending money really has the right balance (you can’t send 1000 € if you only have 100€). So you pay them in order to keep the network secure. This is why every transaction cost some ethereum. So if you don’t have any ethereum on your account, you will not be able to make a transaction

Now, we have few more thing to check together, because I want you to be prepared.

5) Ledger, Trezor and security

You may be aware of the few security warning I shared throughout the tutorial.

With great power come great responsability.

You now have to take care of your money. If you do it well, no one will be able to steal it.

If you don’t care, hacker and scamers will be able to steal your funds.

I actually prefer storing my money and taking care of the security than giving my money freely to banks or governements.

So let’s talk about the risk you can encounter about metamask.

#1 – Connecting to wrong Dapp

This one is for more advanced people. I hope you’ll keep exploring the eth ecosystem, because it’s mind blowing. You’ll discoved awesome applications (also called Dapp for Decentralized application).

But be careful when you interact with them via metamask. If you interact with random ones, they can be malicious and steal your funds. So always double check you are on the right website. Check if possible if the Dapp has been audited if possible. And go to trusted Dapp if possible.

I let do doing your own researches for this, don’t hesitate if you have questions.

#2 – Pasting the wrong address

Always double check if you make a transfer that you are trasfering to the right place.

Here, you handle all the risk of making a mistake. You won’t be able to call your bank if you withdraw at the wrong place.

But note that you always have 100% of the benefits of your money.

#3 – Storing your keys on your computer

Like I said, if your computer is infected by a virus, storing your keys on your computer may give access to your account to the hacker.

He then may connect to your ethereum account and make transaction from your account to his own.

The options you have to store your mnemonic phrase are the following :

a) You store it on a piece of paper. But note that the paper may get destroyed over time. So you can also engrave it on a piece of metal. This piece of metal should also resist a fire, which can be very useful. You then store the key on different places like a safe chest at your house or to a prive safe chest company.

b) buy an encryption usb key and put a word document containing your private key. Check on internet for the accurate procedure. Then store this usd key in a safe chest like above.

What you can also do if you’re a little bit crazy is to buy 2 encrypted key. In the first one you enter the first half of your mnemonic phrase and on the second you enter the last part. Then you store both of these keys in two different places that only you know.

c ) You can also store them at your house, but this is less safe (still pretty safe though), but in case you’re « famous » in any way, and someone knows where you live, your house become a target. Just be aware about it.

#4 – Having virus on your computer

If you’re used to download cracked software or doing weird things with your computer, it’s likely that you have virus. These virus may or may not be a threat to your eth adress.

In a general, there is two way to deal about it.

Either have a computer that is used only for transfering crypto. This computer will only be connected to private internet network (no coffee, no starbucks etc …) and will only be used for crypto.

This way, you’re sure that no weird things will be downloaded, and that no software will have access to your metamask.

Or you can also run your computer on linux. Linux is so not used that hackers don’t bother to make virus on linux. You’re then pretty safe. Still be careful though.

A easy fix solution to prevent someone stealing your fund is Ledger or Trezor.

These are hardware wallet. Metamask is just a normal wallet.

Ledger and Trezor add another layer of security. Basically, you still hold your crypto on metamask, but the only difference is that ledger or trezor are a hardware. This mean that everytime you make a transaction with your ethereum account, you have to enter a password on your hardware wallet.

This mean that if an hacker has access to your computer, he still can’t transfer your money because he can’t enter the password on the hardware wallet.

Only having an hardware wallet make you extremely safe. This is the reccomended easy solution. This is the best.

Now which one is the best between ledger and trezor ?

Ledger has the best technology. Now, their website is shitty and they released the informations of their customer. This is annoying because now, the address, the email and the phone number of thousands of crypto customer are out in the nature. Some scamers just spam these phone and email adresses to try to steal funds.

I still have a ledger and I entered a wrong phone number and a shitty email adress, so that these spam don’t bother me.

I don’t obviously reccomend it, but I’ve received my ledger so far.

Then trezor. I haven’t tester it, but after discussing with some programmers , it seems that the security is less good than ledger.

I leave you making the choice.

Also not that I am pretty extreme with the security. You may have thought « WTF, I don’t want to do any of that ». As long as you don’t download weird things and doesn’t interact with unknows Dapp … Metamast is pretty safe as long as you keep your mnemonic safe, you have no risks.

6 ) What can you do once you’re fully decentralized ?

So welcolme in the sovereigned world guys ! You now have access to many financials applications. You are now able to do whatever banks did in private, while owning the benefits.

Here is a little guide of what you can do :

Buy and sell crypto currencies : https://uniswap.org/ and https://curve.fi/

It’s a decentralized exchange. This mean that no ones have control over your funds. No one can freeze your money. Every trading pair is launched by a private individual. This is only peer to peer so to speak.

You have uniswap, curve, that in my opinion are the best, but you can also check sushiswap, loopring.

Note that you can earn money by providing liquidity. But if I explained it here, it would be way too long. I can’t go into the details and I let you making your own researches. I’ll put somes links below.

Lend and borrow money : https://aave.com/ and https://compound.finance/

These are the two main protocol to either lend your money or make a loan online.

Yes, you’ve read it right. You can take your crypto assest and make a loan.

If you don’t want to make a loan, you can also provide money to the Dapp for other people to make a loan and pay you the interest.

Every ways banks are making money today, you can do it as well …

Aave and Compound are the leader of the field right now, but they have lots of competitors.

Earn yield : yearn.finance

I don’t want to go too deep in the details right now. But just above, I talked about a way to earn interest on your money. This is one way, but you also have many other way to earn money.

Yearn finance actually provide many strategies that offer different yield opportunities accross the crypto ecosystem.

Check your portfolio : https://app.zerion.io/ and zapper.fi

What is cool with binance is that you can check your portfolio change every day very easily. Not really with metamask. Fortunately, some people are creating very easy to use plateform.

Zerion in my opinion is very good, but zapper is awesome as well. They both will read your address and give you a recap of your portfolio.

Very good to keep track of your performance.

7) Pro and cons of being bankless

Pro :

  • You can transfer money within seconds without any question
  • You have access to money protocols at their core and easy way to make money with your money
  • No one can steal or freeze your money (unless they have your private key)
  • You’ll be able to moove everywhere and being a sovereign individual with no banking barriers
  • With adoption, you’ll be able to pay with credit card whithout having a bank account (this is already possible today, while holding 100% of your private key)

Cons :

  • You own 100% of your money which can be worrisome
  • Someone can steal your funds if they have your private key or mnemonic
  • If you make a mistake (like sending money to the wrong address), or get hacked, no one will refund you, so you must be careful => With great power come great responsability
  • The transition to Information Age can be very long and for now, there is no sovereign state

Action to take :

  • Move some fund on a metamask account
  • Dive into the uniswap protocol and why it’s important (google is your friend)
  • Check everything you can do with Aave and compound
  • If you feel comfortable with this, then try understanding how ethereum work in the background of all lthis technology
  • Understand how blockchain technology work and why it’s very trustable

Information to go deeper :

Disclaimer :

This topic, the information I share and the information that « The Sovereign Indivual » share are mainly speculation today. Even though I have a strong conviction this will happen, I am not a financial advisor, and every decision you make is 100% made by yourself. I am just sharing my point of view.

ALSO :

Living in a decentralized world have plenty of news rules you have to be aware. For example, youp ay a fee every time you want to make a transaction. The value of this fee can change over time. So don’t hesitate to ask question if you have any, and ore importantly, dig deep if you want to be 100% free.

21 Likes

Thanks @CiziaG1

I have first read it in diagonal way as I am on a few live matches but did a 5 mins coffee break waiting for a goal and it will be a really interesting post from what I could grabb out of it yet.

I will take it on a pdf and read it on my kindle at a more quiet time.

But thanks for this veryyyy long post full of info and as usual when it comes from you on crypto/money I remember the inputs were always really smart and interesting.

Until soon then :wink:

2 Likes

Really great work ! Explainations are very clear for beginners .Thanks for our guy :pray:t2:

1 Like

Ahah, and I’ve cutted it in half. The first (very long) part was about how banks steal your money by any way possible, and how the society could evolve (mainly thought after ready “The sovereign individual”). But it was too much information in one topic.

I hope to bring usefull information, and bridge as many people as possible to this complexe world.

I really hope to help people making the transition, this may take time, but I can answer some question if any one have some :slight_smile:

Thanks :pray:

4 Likes

So please send me in mp the entire one :wink:

Then I will buy right now this one :wink:

2 Likes

Thanks for this topic !

Same as Warren, I’d like to receive the first part about banks stealing our money :wink:

1 Like

Hi CiziaG1, great post !

Same for me, I’d like the first part :slight_smile:

3 Likes

You know what guys, I thought the first part was not valuable enough for the community, but if the demand is here, let’s go !

here is the first original post I wanted to share which containt the first part on banks :slight_smile: https://we.tl/t-A1u3XCeNtL (discourse doesn’t support PDF files)

I hope you’ll enjoy

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Ahahah yes of course, but I don’t want to get too complicated. I mean, not putting everything on the same basket is more of an investing saying, but true of course. Thanks for the add.

For that, I would encourage people to check for these blockchain as well, but the goal of the topic is really to start being aware of all those opportunities. Most of DBL is not aware of the capabilities of ethereum and even less of other blockchains …

I personnally am more of an eth maxi at the moment, and the topic really is to unboard people into the decentralized world. From there, if they feel courageous enough to dig, they’ll little by little make their own opinion. But I can keep all the speculation stuff for later I guess. People are not ready. I even know people with multiple hundreds thousands that prefer staying on centralized exchange because they’re scared of loosing money …

The topic is scratching the surface on purpose. But I would be happy to talk about it if any one is interested in it, even though I am not an expert on all of those blockchains. But I definitely can add value about Dapp on Ethereum !

Thanks for the value added Max, much appreciated :+1:

3 Likes

I just finished reading the entire PDF, it was really interesting. Thank you very much.

I’ll be glad to read something similar about money Lending on Aave, Compound or Yearn finance.

2 Likes

Thanks Marc.

Actually, lending on Aave and Compound is much more easier than it seems.

Basically, you need some funds, or some tokens so to speak. Some tokens are accepted to deposit, somes aren’t. You can check the tokens available to deposit on the Dapp here Aave - Open Source Liquidity Protocol

Then you can just deposit and you’ll automatically receive rewards from that. The APY (Annualized Percentage Yield, which is the compounded ROI) is displayed here :

This will vary every day according to the supply and demand.

Now borrowing is a little bit more complex and you need to do some calculation about your loan to value, liquidation price etc … I would not advise any newcomers to borrow on the ethreum network right away. But this is possible, you just need caution.

If you need more information about how interest are created, you can read the documentation here : Introduction to Aave - FAQ

Yearn.finance is a little more complex though. It allow any one to use strategies (easy ones and complex ones). So to understand yearn, is much more flexible than Aave and just use every DeFi tools available (and safe) to propose complex strategies to its users. The Dapp takes some profit as a reward, this is the performance fee. This is basically the business model. So every one makes money.

6 Likes

Hello CiziaG1,

Link just expired. Can we have a new link :slight_smile: ?

Have a good evening,

Daniele

1 Like

Arg, Discourse still do not support PDF.

Here is the file : WeTransfer - Send Large Files & Share Photos Online - Up to 2GB Free feel free to ask me later on if it’s disabled again. And feel free to ask any question here :ok_hand:

Thanks for your interest, I wish you a good read

2 Likes

Thank you very much :handshake:

I would like to come back to this part:

With adoption, you’ll be able to pay with credit card whithout having a bank account (this is already possible today, while holding 100% of your private key)

Yes, this is already possible…but with centralized platforms like Binance or crypto.com, platforms you recommend to avoid (or am I missing something?).

The main weak point of cryptos remains that you can’t spend them in the “real world”, without getting taxed or controlled. Unless you only make transactions with people who have fully switched to cryptos as well.

2 Likes

Yes like you say, this is possible but with centralized services, so you don’t own your private key and your funds can be frozen … I’ve been following Crypto.com since the begining in 2017 when they were named monaco, and I feel like they always had a shady image, but that’s only my opinion, I wouldn’t reccomend them.

I think that Monolith is doing a credit card while users keep their private keys, and that’s what I mean in the quote you made (disclamer I have never really dig into Monolith because I don’t really need them yet). And side note, this service will never be 100% decentralized (because of credit card issuer and physical payement validators)

In my opinion, and that at the time of writing the PDF there wasn’t any governement making crypto transaction easy. Since then, El Salvador started the movement and accepted bitcoin as their official currency. And I expect that sooner or later, once big countries like US, or even China, etc … are like hell for crypto-soveireign people, there will be a huge arbitrage for countries to adapt your tax law and to ease crypto usage. The countries embracing crypto will see a massive inflow of wealth coming, and this will allow you to use your crypto as a mean of payement. So it will come with time.

2 Likes

Monolith looks interesting. I will check this more in details.

There is also DKYC (Don’t Know Your Customer). If you hold their token (which recently pumped), you get reflections in BUSD and you can spend these reflections with their card.

But you need to have a lot of DKYC tokens to get a good amount in reflections. So it’s not interesting for me yet, as I am a small investor.

1 Like