Undoubtedly, the greatest innovation in financial technology (Fintech) is Decentralized Finance (DeFi) utilizing the blockchain technology. Love or hate cryptocurrencies, Defi is a bigger deal than even Bitcoin at this point. In fact, numerous countries are now adopting Defi for their national stablecoins and many other applications outside finance. Clearly, DeFi has a heck ton of demand right now and those who are leading this market now, will surely have big fat share of the future markets. However, when it comes down to which DeFi coins to buy, we really had to think twice since there are quite a few good options. But, here we are with a short list of top DeFi Coins to buy in 2022.
DeFi Coins to Buy for Freedom!
Decentralized finance cuts out the middle man. Transaction times are reduced and the gas fees are much lower. How does it work? The Blockchain technology.
DeFi utilizes blockchain to record and verify transactions in blocks. Also, all the information available on the blocks is encrypted. By decentralizing this network of data and transactions much like cryptocurrencies, DeFi manages to provide a much more efficient network and a quicker consensus mechanism.
On the other hand, DeFi is accessible anywhere in the world that has a connection to the internet. So, gone are the days of waiting for bank transfers.
For the time being, the only downside for DeFi is the unclear regulatory status. Each country has its own set of rules concerning DeFi and the technology is in early stages. However, considering the scope of this technology, DeFi is definitely here to last. Without further ado, here are DeFi Coin to Buy.
The Terra network is an open-source blockchain protocol that works as a payment platform for stablecoins. Essentially, the network creates stablecoins pegged to fiat currencies. These stablecoins constantly track the price of these fiat currencies. Within the network, users can buy, hold, trade or simply exchange all stablecoins.
Perhaps the biggest challenge for any stablecoin is to keep the value pegged and stable. To overcome this challenge, Terra network balances the supply and demand by their governance token LUNA. Used for both governance and mining, LUNA ensures that all stablecoins remain stable. In that regard, LUNA acts as a counterweight in the network. Users can either burn LUNA to mint Terra or simple stake LUNA.
As of December 2021, LUNA is in the top 10 cryptocurrencies with a market cap of over $21 billion USD. Considering the inevitable demand for stablecoins and the clever design of Terra, it is safe to assume LUNA a highly successful future.
Buy Luna instantly with the lowest exchange fees on HiExchange.
Avalanche is a blockchain platform launched in 2020 by Ava Labs. It is essentially a smart contracts platform that aims to dethrone Ethereum. To make this happen, the network offers incredibly fast transaction speed, low transaction fees and eco-friendly attitude.
If you know about the blockchain trilemma, you will know how at least no one has been able to solve this issue. However, Avalanche promises to deliver impressive scalability while at the same time remains decentralized and secure. So far, it has been able to fulfill almost all promises as a worthy Ethereum killer on the rise.
AVAX is the native token of the network and is currently 10TH in the ranks. With an impressive $20 billion market cap, it is continuing to close the gap with Ethereum.
You can easily buy AVAX on HiExchange with no KYC or Sign Up required.
Why would you invest on a stablecoin? There answer is despite the stable price, Dai is an excellent alternative for Tether. Considering all the rumors about Tether, Dai is the safer alternative as a stablecoin.
DAI is an Ethereum-based stablecoin. A stablecoin is a cryptocurrency with a pegged value to another currency. In case of DAI, it is pegged to the US dollar and much like Tether and USDC, Dai will always be worth $1. Stablecoins are a crucial part of the crypto market as they offer very little volatility. In that regard, investors use stablecoins to save their funds in the form of a reliable and stable asset.
What makes DAI unique is a clever design that eliminates the biggest concerns for stablecoins. Generally speaking, conventional stablecoins require a massive reserve by the company. For example, for every Tether USD, the Tether company must hold $1 USD in their reserve. This is a huge issue for companies as it is difficult to provide liquidity and keep it consistent.
DAI offers a new solution for this problem. By using an automated system of smart contracts on Ethereum blockchain, DAI does now need a reserve. Using collateralized debt denominated in ETH allows DAI to maintain the 1:1 ration with USD. Simply speaking, users can deposit Ethereum or other cryptocurrencies can borrow against the value of their deposit and generate new DAI. The currency is this case is known as collateral.
Currently, DAI has a market cap of over $10 billion and is ranked as 19th cryptocurrency.
Buy Dai instantly on HiExchange.
Fantom is an open-source decentralized smart contract platform for DApps and digital assets. It is made to be an alternative to Ethereum. Fantom is looking to overcome the primary limitations of previous blockchains and balancing three components (blockchain trilemma): scalability, security and decentralization. The project offers a series of apparatus to simplify the process of integrating existing DApps, as well as an extensive staking reward system and built-in DeFi instruments.
Fantom is basically a Layer-1 blockchain that uses a scratch-built consensus mechanism and independent consensus layer, “Lachesis”, to facilitate DeFi and related services on the basis of smart contracts. Lachesis also provide security for other layers, including Opera, Fantom’s EVM-compatible smart contract chain. The goal of the project is to “grant compatibility between all transaction bodies around the world.”
The Fantom network is fast and furious! thousands of transactions per second, where transactions are finished in 1-2 seconds, and the cost is fractions of a cent per transaction. Hence, Fantom provides better scalability at a lower cost.
Currently, FTM is 32nd in the ranks with a market cap of over $6 billion USD. It is a relatively new player in the game but has so much potential for the future.
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