The best DeFi coins are currently being eyed by crypto investors and beginners. This is based on the view that this type of crypto asset will provide long-term benefits for its owner.
The DeFi coin or Decentralized Finance (DeFi) coin itself has indeed become one of the new breakthroughs in the development of the rapidly changing crypto world. In this regard, the DeFi coin itself has uses that cannot be underestimated and ignored. To know more about what DeFi is and a list of DeFi coins that can be an investment choice, see the review below.
Definition, How it Works, and Benefits
What is DeFi coin? Before knowing it, you need to first understand what Decentralized finance or DeFi is. Basically, DeFi is a peer-to-peer financial service using a blockchain network.
The DeFi coin is a digital form of fiat coin, which will send value to financial transactions. Coins of this type are often created in order to strengthen their own blockchain network.
Regarding how it works, DeFi itself uses cryptocurrencies and smart contracts in order to provide services that do not require intermediaries. This smart contract also in a transaction will act as a substitute for financial institutions.
For example, every Thursday, Andy sends money from Account A to Account B. Well, that will only ever be done or executed as long as Account A has the necessary funds.
It is important to know, in this case, no one will be able to change the contract and add Account C as a beneficiary to steal funds. The contracts are also public for anyone to examine and audit.
So, what are the advantages of DeFi? Some of them are as follows:
- Unlike conventional financial systems, DeFi does not require intermediaries
- DeFi users have complete control over their assets
- The financial system offered by DeFi is uncomplicated
- Operates using blockchain so it is considered more secure
- Accessible to anyone who does not have access to a traditional financial system
- Has a cost that tends to be lower
Why is the Best Coin DeFi So Popular?
Lately, DeFi coins can also be called very popular, both among investors and beginners. This is because DeFi is known to have been and is expanding the scope of the blockchain.
Call it lending and borrowing, stablecoins, yield farming, and a number of other derivative applications, all of which are now operating in DeFi applications. Thus, the blockchain will be more useful and inclusive.
There are many investors who are starting to take an interest in DeFi because of the huge potential in this sector. For example, Mark Cuban. The entrepreneur and billionaire has even compared the growth of DeFi to the emergence of the internet. Meanwhile, Cuban has also invested in AAVE and Sushi Swap—several DeFi protocols.
List of 5 Best DeFi Coins
Uniswap is an automated decentralized crypto asset exchange built on the Ethereum blockchain network. The main UniSwap token is named UNI.
Why should you buy UNI? If you buy UNI then you have participated in the decision-making process about the future of the network.
In addition, you can also benefit from the growth of DEX value over time.
Maker (MKR) is a decentralized network that uses the Ethereum network. The network is an autonomous organization (DAO) that allows anyone to lend or borrow cryptocurrency.
What are the reasons why you should buy MKR? The main reason is because this token will bring many benefits to the market as a whole. Therefore, MKR becomes a potential asset because its value is predicted to be relevant and its price tends to increase.
Aave (AAVE) is an open-source and non-custodial based protocol that allows users to earn interest on deposits. Not only that, users can even borrow their crypto assets.
AAVE is important to buy because every holder of this token will be able to gain access to a number of advantages offered by the network. This means that AAVE borrowers are not charged a fee, if they take out a loan in tokens. In addition, there are also discounts on other fees on the platform.
In addition, if you want to borrow these tokens, you can upload tokens as collateral which allows you to borrow more assets.
PancakeSwap is a decentralized exchange that allows you to trade cryptocurrencies and tokens without the need for a centralized intermediary. The service is built on top of the automated smart contracts used on Binance Smart Chain—a blockchain platform run by the leading crypto exchange, Binance.
There are so many advantages to Pancakeswap—with its main token: CAKE—that you should buy it now.
One of the advantages is that Pancakeswap is one of the popular DEX platforms used by many people—at least, there are 2.8 million users of this platform.
Backed by high adoption and low transaction fees, CAKE is highly recommended as the best DeFi coin to invest in.
Universal Market Access (UMA) is one of the protocols on Ethereum, which allows users to transact any crypto asset they want with ERC20 tokens.
Why should you buy UMA? Some of the reasons you should invest in this asset is because UMA digitizes real-world financial derivatives and has an excellent data verification system.
Therefore, UMA is also recommended as the best DeFi coin that can be an investment choice in crypto assets. Thus the review of the list of the best recommended DeFi coins. To buy some of the best DeFi coins on Indodax, you can go to the following link.