As the name suggests, DeFi refers to Decentralized Finance and it is a very broad category that allows the end-users to avail alternatives for traditional financial services, let it be corporate banking, mortgage, or trading on exchanges. In this article, we will talk about DeFi, the most popular cryptocurrencies in this niche and how our crypto signals can help you trade better on different exchanges.
The Importance and Benefits of DeFi (and its tokens)
The primary reason why DeFi is gaining momentum and importance is because of the ‘disruption’ it offers. Mainly, it removes the barriers to entry in the financial market, crypto in particular and all you need is a smartphone and access to the internet. Apart from that, you can start taking advantage of DeFi without any minimum threshold. However, in traditional systems, that do not run on DeFi (e.g. stock trading), you do need a minimum investment and several other factors are also involved (i.e. visiting a broker physically, etc.)
It is also worth noticing that DeFi happens to be the fastest-growing area in the blockchain sphere and ultimately, the crypto niche.
Talking about its benefits to the end-users, it facilitates them in the following ways:
- Entertains high-speed transactions with low cost – allowing the end-users to conduct high-value transactions in a matter of seconds
- Unlike most of the exchanges, DeFi platforms put users in charge of the private keys of their wallets, so there is no way someone can access their funds, whatsoever.
Therefore, you do not have to trust a 3rd party for keeping your wallets secure, not even the exchange!
- Since these platforms do not have an administrator, they run in a truly decentralized environment and offer a higher level of privacy. As a result, the prices are also reasonable (just sufficient enough to conduct transactions and maintain the network)
- There is a completely transparent protocol, guarding the private information of each member, without any favoritism for anyone
Top DeFi Coins (w.r.t Market Cap)
One of the most important factors is that DeFi tokens have continuously been outperforming their competitors on different exchanges and since they have become so popular, let’s explore 10 of the top DeFi coins with the highest market capitalizations (not in the order of preference or rank).
- Curve DAO Token
- Compound Dai
- Synthetix Network Token
- EthLend Token
- Curve Y Pool
- Compound Ether
- UMA Voting Token v1
- Kyber Network Crystal
Since DeFi tokens are gaining popularity in the market, they might be the next biggest and most profitable happenings in the industry and whenever they start getting traded in huge volumes on different exchanges, our experienced traders will provide you with high-quality crypto trading signals.
Why Is DeFi the Future of Trading?
One of the reasons is already mentioned above (i.e. it removes entry barriers for newbies). Apart from that, it should be mentioned that DeFi is a very generic technology and these networks are not blockchain-bound only. DeFi just needs a decentralized environment, let it be DLT, Tor, or blockchain, there is no restriction, whatsoever.
Therefore, this technology is way more practical than any other decentralized system out there and its generic nature makes it accessible to masses, thus adding a huge potential in the value of tokens.
Can People Make Money from DeFi Tokens?
See, the crypto market is volatile and people are already making money – a lot of it! The case is not so different with DeFi tokens as well and traders have started grabbing profits in tens of percent!
Here is a short story of a DeFi trader who made more than 85% profit within minutes:
- He invested $45,000 in USDC
- Borrowed $405,000 from an exchange
- Exploited the minor fluctuations in the values of stablecoins
- He swapped nearly $450,000 USDC for $492,000 USDT
- Paid off the loan that he had borrowed from the exchange
- Paid off his transaction cost
- Bagged a massive profit of $40,000
These are some pretty mainstream tricks. However, in our Telegram groups, we also provide you with several other trading signals on different exchanges where you can execute the strategies to generate hundreds and thousands of dollars!