How to get the DFI
How to Obtain DFIβ
To obtain DFI, there are two main methods.
- CakeDeFi, also known colloquially as Cake (<https://cakedefi.com>)
- Exchanges
Here we will describe the advantages and disadvantages of each method.
CakeDeFiβ
Backgroundβ
Cake was founded in early 2019 by Dr. Julian Hosp and U-Zyn Chua, who also started the DeFiChain project. Cake's goal is helping users "bake cash flow with crypto while [they] sleep." (cakedefi.com)
They do also have their own subreddit and Telegram group. These groups cannot provide official support. It has been made clear in their respective groups.
- Reddit: https://www.reddit.com/r/cakedefi/
- Telegram Group: https://t.me/CakeDeFi_EN
Advantagesβ
- Founded by same crypto investors as the project itself, so they have a great understanding of the project
- Largest company involved with DeFiChain
- Hundreds of thousands of users also use the platform (400,000 according to the website, as of March 2021, cakedefi.com)
- Versatile platform, offers other services on DeFiChain and supports other coins such as Bitcoin and Ethereum
- They are offering a \$30 deposit bonus on any first deposit of more than \$50, incentivizing users to start with them
Disadvantagesβ
- 4% premium, according to the official DeFiChain website (defichain.com)
- KYC is required (users need to provide proof of residence and other personal information)
- Certain locations are prohibited from using Cake, users must ensure they are in an authorized location
- Fees may be higher than using the blockchain, and withdrawals will take longer than using the blockchain
Registration (more information needed)β
The official registration form is at https://app.cakedefi.com/register. Referral codes may enable users to get a larger bonus.
Exchangesβ
Backgroundβ
You may have heard of exchanges such as Binance and Coinbase. These are two of the largest centralized exchanges in the world. However, these exchanges do not currently support DFI, so investors will have to use less prominent exchanges if they wish to get DFI using this method. Here a couple typical options the community uses to obtain their DFI:
- KuCoin (large exchange)
- The registration link is here. Once again, referral codes may give users certain bonuses, so take advantage of them.
- Advantages
- Fees are 0.2% and decrease if you trade significantly more. Users also get a 20% deduction if you pay with their native token KCS. Find more information here.
- DFI staking is offered, although with much higher fees than Cake.
- Offers a large variety of cryptocurrencies, allowing users to trade other coins and tokens as well.
- No KYC is required
- Disadvantages
- Failure to complete KYC results in a lower daily withdrawal limit. Unfortunately, it is not possible for U.S. users to complete KYC and become verified as KuCoin is not licensed to operate in the U.S. Therefore, users' funds are at a greater risk should the government crack down on such exchanges.
- Bittrex (small exchange)
- Bittrex's registration link is here. They do have referral codes, which may give various bonuses and discounts.
- Advantages
- Like KuCoin, there is a large selection of cryptocurrencies available for purchase
- Disadvantages
- Fees are higher than at KuCoin, starting at 0.35%
In addition to these traditional exchanges, users may also use DFX.Swiss to obtain their DFI if they have a SEPA bank account. It is a community-run business and also offers other services such as staking and trading of the tokens on DeFiChain. This will be explained more in detail in the sections below. However, their services are available only on their app, and their fees are significantly higher. They begin at 2.9% for low-volume traders and decrease to 2.4%, although there is a 1% discount if you use a referral code.
Advantagesβ
- May be easier to use and have proven track records for exchanging all types of coins
- Lower fees than Cake, which sells DFI at a premium of 4%.
Disadvantagesβ
- Exchanges are not as familiar and do not specialize in DFI
There are other methods of obtaining DFI, as this list is not all-inclusive, but they are not important and not of benefit for beginners to understand at the moment, and many users do not use alternative methods anyways. The two methods above are the most common and almost only ways of obtaining DFI.