DeFi is a very popular term these days and there’s a lot of hype around it right now. It stands for Decentralized Finance and it’s a whole industry, combining various financial services such as borrowing and loaning, trading or providing data exchange between various platforms in a decentralized manner. The biggest sector of Defi is by far decentralized borrowing and loaning and there are many projects that are currently operating in this space.
If you are going to get into DeFi coins, there are plenty to choose from. The best way to keep track on these is through data aggregator websites such as coinmarketcap, messari and coingecko. Each of these has a DeFi section where you can compare prices and other metrics in real time.
Your first step is identifying the projects that have strong fundamentals and the most resilience to market dumps. As my number one rule goes: when the market is in a downslide (bear market), the altcoins tend to lose value by significant amounts, so I wouldn’t hold altcoins for long periods of time. Altcoins (and these are all coins other than Bitcoin) are too volatile to be in my long term portfolio but they’re ideal for short-to-medium term hold as they bring the biggest gains when they pump. Which is why I sell alts when I see a decent pump. Taking profits is essential to maintaining a successful investment portfolio, so make sure you do that as your crypto goes up.
As for the leaders in the DeFi space, many of these are tokens with utility, such as AAVE, UNI, SUSHI, CAKE, AVAX, LUNA, LINK, TEZOS, SNX and more. Some of these are issued by decentralized exchanges (DEXes) such as Uniswap (UNI) – the biggest of them all, its copycat Sushi Swap (SUSHI), and 1inch, Curve (CRV) or the Binance-based alternative Pancake Swap (CAKE). Others are tokens of lending platforms like AAVE, Maker (MKR), Compound (COMP), 0x (ZRX) and Bancor (BNT).
When it comes to buying any of these, the fastest way to do this is by checking the platforms where they are being traded and most of them are already on popular exchanges like Binance, Kucoin, Uniswap, Bitpanda or Coinbase, so you will need to open accounts with some of these (or all). You can use the links provided here to register with these exchanges so you can take advantage of the rise of DeFi – one of the biggest sectors in crypto for the past 2 years. Indeed, DeFi has grown by more than 5000% in the last couple of years, and the projects that operate within this sector have seen tremendous success in such a short timeframe, that it’s no surprise that everyone is wanting a piece of that pie.
To identify which on exchanges your chosen token is being traded, just navigate to the token listing on coinmarketcap or coingecko and then find the tab called “markets” (see pic below).
This is where you will see where you can buy the token and the next dilemma will be where to store it.
If you’re not going to hold the token for too long, but simply looking to make a quick swing trade and take profits soon, you might be okay to keep it on the exchange where you bought it but for long term hold (anything more than 3-4 months) I would advise you to move the coins/tokens to a safer wallet such as a hardware wallet. Ledger Nano X, SecuX and Opolo Cosmos are all great for this and I have tutorials and discounts codes for each of these, so make sure you check out my other posts. You can see my complete crypto wallets guide in this post.
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🛒Where I buy crypto
- Bitpanda (bank cards & transfers accepted)
- Coinbase (credit cards, bank transfers)
- Swan Bitcoin (US only)
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- Binance (credit card, bank transfer)
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The information contained in this article is for informational purposes only. Nothing herein shall be construed to be financial or legal advice. The content of this video reflect solely my own opinions. Purchasing cryptocurrencies poses considerable risk of losses.
All information is meant for public awareness and contains what is already in the public domain. Please take this information and do your own research.
Crypto Jargon A-Z is the most comprehensive crypto dictionary (glossary) of all the terms, acronyms and slang that you will find in crypto guides, videos, articles and social media posts. Get more than 1000 terms compiled and defined in a simple way, and enhance your knowledge and understanding of the jargon you see every day. Available on Amazon (Kindle format): https://www.amazon.com/dp/B07Y9DT3H