By now you’ve grown curious about cryptocurrencies, but perhaps don’t understand what all the chatter is about. If you’re confused, don’t feel bad. DeFi is the short-hand term for decentralized finance. This is a technology that makes cryptocurrencies possible, relevant and growing in the 21st century.
The beauty of DeFi is that it eliminates the middleman when it comes to monetary transactions. When you are paying for dinner or buying groceries with a credit card, there are hidden fees that you end up paying for, similar to an ATM fee.
But what exactly is the DeFi concept, and what are some of the various platforms to keep an eye on in the future?
DeFi makes ATM fees a thing of the past.
Under DeFi principles, your money is held in a secure digital wallet. You can transfer money in seconds. All you need is an internet connection to get going. DeFi uses technology called blockchain to make that happen. In its simplest terms, a blockchain is a secured database that is linked together. If one block of data is altered, then all the others are also manipulated, because they are chained together (hence the name), making it virtually tamper-proof.
Now start thinking of all the different platforms as different currencies. These platforms/currencies exist because of DeFi capabilities. You know about paper money, the dollar, the peso and the Euro. There are different cryptocurrencies that come with their own specific advantages.
There are dozens of DeFi platforms that you can invest in. Each one is used for different things, but blockchain technology makes them a risk-free way to trade your assets.
DeFi platforms to keep an eye on
Interested in investing? Here are a few DeFi platforms worth keeping an eye on.
Ethereum – the native currency is called ether or ETH. As of early 2022, Ethereum was second in market value to Bitcoin among all cryptocurrencies.
Raydium – This is a platform powered by the cryptocurrency Solana with a market volume of over 40 million.
SushiSwap – SushiSwap supports multiple blockchain codes copied from Uniswap, think of it like a paper currency that has the same value no matter where you use it.
Trader Joe – Nope, this isn’t the niche grocery store. JOE is the top DeFi platform on the Avalanche network, with a market cap of over 19 billion.
PancakeSwap – The native token is called CAKE. Pancake Swap had over 3.3 million users in January. It enables you to trade and join pools for investing.
A few others to also look out for are Terra, AAVE and Lucky Block. Lucky Block has the ability to become a worldwide lottery. Since it’s supported by blockchain technology, it is guaranteed to be random.
A different way of banking
DeFi is a different way of looking at banking and investing. It adds a secure computer component that should change the way you look at money. The DeFi concept has opened the door for multiple cryptocurrencies to grow.
Interested in learning more about DeFi and cryptocurrencies? We can help you use these platforms to take your business to the next level. Contact us today to learn how.
*this article does not constitute financial advice. All investors should do their own research and understand that all investments have risk.