Trade Crypto To Avenge The Robinhood Treason
If you’ve been following the recent explosion of Gamestop’s stock price (GME) due to the r/WallStreetBets subreddit on Reddit, you’ll know that a lot of Internet natives have made a ton of money at the expense of Wall Street hedge funds and investment banks. And boy, are they pissed.
In summary, the hedge funds decided to massively short GME, even borrowing more shares than in existence in order to artificially drive the stock price to zero. The denizens of r/WallStreetBets on Reddit decided that this was a great opportunity for them to perform what is called a short squeeze. A massive short squeeze. They began buying up all the GME stocks available, causing the price of GME to rise, and causing hedge funds’ short positions to be liquidated.
Since short positions involve borrowing shares to immediately sell (in the hopes that the price goes down) in order to close those positions the shares ultimately have to be returned. But since hedge funds borrowed more GME stocks to short than existed, when r/WallStreetBets started buying up GME it caused a massive shortage of GME stock.
In the end, the hedge funds got liquidated, and still had to return the shares they borrowed, so they had to purchase GME back from the market–or in other words, from r/WallStreetBets investors. And these Redditors weren’t going to sell cheap. This time, it was Wall Street losing its shirt, and Main Street cashing in.
Guess what happened next?
Brokerages like TD Ameritrade and Robinhood decided to shut down GME trading in order to save big hedge funds from going bankrupt. That’s right, they shut down the game because the wrong people were losing.
It’s especially bad that Robinhood (named after a character that stole from the rich to give to the poor) is essentially betraying its own namesake by preventing rich hedge funds from losing money to normal people.
This situation would of course never happen with Decentralized Finance (DeFi) built on decentralized blockchain technology. Since there is no central actor, exchanges can’t be shut down to suit the needs of any group or individuals. The power of DeFi lies in how democratic and open it is. The same rules apply to everyone.
In this article, we will show you how to participate in DeFi, and how to navigate this new world disrupting the corrupt insider’s market of traditional finance.
Step 1: Buy Your First Cryptocurrency (Ethereum)
In the case you don’t have any cryptocurrencies yet, you can start by using one of the most known cryptocurrency wallets called Metamask. MetaMask is a cryptocurrency wallet but also a web browser extension (available in Chrome, Firefox and Brave) used to store, send and receive Ethereum and ERC20. In other words, it allows users to make Ethereum transactions.
This is how you buy Ethereum on Metamask:
Visit Metamask.io website (do not perform a Google search, actually type Metamask.io into your browser manually to prevent landing on a fake site. Don’t even copy and paste the link here since you shouldn’t trust us either!)
Download the extension
Create a Wallet
Click "I Agree"
Create a Password
Save the Secret Backup Phrase
Confirm the Secret Backup Phrase
Now click “Buy”
Click “Continue with Wyre”
Insert the amount of ETH you want to purchase in USD
Click next and then insert credit card details
Wait a little bit and you will get your first ETH on the Metamask wallet
Step 2: Buy Cryptocurrencies Using Uniswap
After Robinhood’s dirty move, it’s more than clear that the future of the financial markets needs to leave intermediaries out. Decentralization is this future, and it’s here.
Uniswap is the biggest decentralized cryptocurrency exchange, which facilitates automated transactions between cryptocurrency tokens on the Ethereum blockchain through the use of smart contracts.
Decentralized exchanges (DEX) are a type of cryptocurrency exchange which allows for direct peer-to-peer cryptocurrency transactions to take place online securely and without the need for an intermediary.
In transactions made through decentralized exchanges, the typical third party entities which would normally oversee the security and transfer of assets (e.g. banks, stockbrokers, online payment gateways, government institutions, etc.) are substituted for a blockchain or distributed ledger.
In other words, what Robinhood did would never be possible with decentralized exchanges.
So for the sake of argument, let’s test this process by buying what we believe is one of the top up-and-coming cryptocurrencies in the blockchain market: Polkastarter (POLS). Our community members at Coinvision Street Team know we have supported this project from day one. You can look at Polkastarter as the new standard for fundraising, a platform that enables any project to raise capital in a fast and decentralized environment.
How-to Buy POLS Using Uniswap and Metamask
Now that you already have your Ethereum (ETH) on Metamask (Check Step 1) we are now going to go through a step by step for trading on Uniswap, using Metamask.
Step one, go to Uniswap by following this link: https://uniswap.info/token/0x83e6f1E41cdd28eAcEB20Cb649155049Fac3D5Aa
Then click on “Trade”
Click "I understand" and then "Import"
On the "From" input choose ETH
Input the amount of ETH you want to swap for POLS
Confirm transaction on Metamask
It’s done! You now have a new token!
Now that you know how to buy a new token, you can start your research on the usual socials you use for financial analysis. If you want to find new trading pairs, you just have to visit the Uniswap analytics page. Good luck and welcome to the decentralized world!