For many people who are just getting started with trading (and even those who are more experienced with different kinds of investment vehicles), navigating the world of crypto is often something that beginners will find quite complicated.
Sure, there are big names like Bitcoin and Ethereum that you’re likely to have heard of, but what about the many alternatives (often known as altcoins) that are out there, or the various projects with their own DeFi tokens that you could support and be rewarded for down the line? If you’re interested in some of these newer, more accessible coins, especially ones that have the potential to grow in the future, you’ve come to the right place.
Table of Contents
Best DeFi tokens
Lucky Block – a new crypto lottery where each participant gets paid
Dash – one of the most popular DeFi projects
Solana – considered to be the main competitor of Ethereum
Lucky Block (LBLOCK)
With many digital coins out there at the moment, Lucky Block is generally considered to be one of the best Decentralised Finance (DeFi) projects right now – which is why it deserves a spot on this list.
Essentially, Lucky Block aims to become the crypto lottery, powered by blockchain technology and offering players around the globe a chance to win digital coins. Not only are there several aspects of this DeFi project that have helped it to become a top option, even just in the way it aims to run its lottery using the blockchain, but there’s also the fact that the LBLOCK token offers investors an easy way to invest in the platform for rewards later on.
Amazingly, the presale event ended early due to high demand; further proof that Lucky Block has a wealth of potential for both investors and users alike. The great news is, even without presale prices, LBLOCK tokens are still fairly inexpensive and easy to invest in if you’re looking to take advantage of the success that’s surely just around the corner. All in all, with its popularity and potential, it’s not hard to see why Lucky Block could be a good addition to your DeFi portfolio.
Starting in 2014, Dash (Digital + Cash) may not be one of the newest DeFi projects on this list, but it’s certainly one that is worth checking out. At first, the main goal of Dash was to provide as much privacy and anonymity as possible, although the mission has changed to providing a simple and efficient payment method instead (while still retaining high-end encryption and data protection).
There’s a lot that has helped DASH to become more popular in the crypto community; from its unique method of confirming transactions, to its reliability. If all this sounds good to you, it could be well worth looking a little closer into everything that Dash has to offer.
While one of several newer DeFi crypto projects made to compete with Ethereum, there are several things that Solana has been able to achieve. Essentially, many of the things that you know about Ethereum carry over to Solana, like the fact that it’s both a currency and a platform, which can function well for a whole host of investors. However, Solana aims to provide more efficient transactions, being able to process far more and for lower fees.
The SOL coin offers many features, too. For example, it can be used to pay for transaction fees, as well as to earn passive income by staking. As one of the best Ethereum competitors on the market right now, Solana could certainly be a lucrative choice.
Another project that aims to improve upon the formula popularised by Ethereum is Algorand. Unlike Solana and many of its competitors, Algorand focuses on boosting the security of its platform, while also providing users with faster transactions. You can even use Algorand to create decentralised applications, which is another bonus that has helped it to steadily grow in popularity over its short existence.
ALGO tokens may be a good investment if you’re hoping to get involved with up-and-coming cryptos – and better yet, you can even stake your ALGO coins to earn a little extra profit on the side. The Pure Proof of Stake system is also more efficient than the usual Proof of Work method too, which has only helped in pushing ALGO even closer to success.
At this point, most people know of Dogecoin, whether they’re into cryptocurrency or not. This notoriety is in itself one of the key reasons why DOGE deserves a spot on this list. While simply being a memecoin for the majority of its existence, Dogecoin has slowly but surely climbed the ranks toward being a reputable investment vehicle. With a total value higher than 50 billion dollars, it’s not hard to see why so many people are starting to take it more seriously.
While it may not be the most stable or consistent of investments, it may be worth looking into DOGE simply for its popularity and the growing recognition that’s placing it more and more in the public eye. Considering the way DOGE has evolved, no one knows for sure where it could be in the near future – and with an extremely low cost per coin, it’s a more popular choice for those looking to buy in bulk and hold for a long-term investment.
There are several reasons why many people are choosing to invest in a project like Aave. In many ways, it acts as a system of lending pools, making it simple for individuals to deposit the amount they wish to lend and earn from this, or take out a loan and borrow from the pool. It’s an incredibly simple and effective system and one that has already seen some success over recent years.
The AAVE coin is essentially a governance token, meaning that token holders will often be able to vote on key protocol changes, which is worth considering while the coin is still fairly cheap.
UniSwap was one of the first DeFi applications on Ethereum to see some attention – and while there have been several other decentralised exchanges (better known as a DEX) since, UniSwap has remained one of the top choices on the market for quite a few reasons.
The UNI token, like a few of the other digital coins on this list, is a governance token and if you’re interested in a platform that’s already gaining significant traction, it’s worth looking into investing in UNI.
Built on the Ethereum network, SushiSwap is a decentralised exchange that was originally forked from UniSwap and uses smart contracts to offer liquidity pools for simple, efficient and direct trading. While you can’t trade fiat-crypto or vice versa on this platform, it does make it incredibly easy for essentially anybody to trade one cryptocurrency for another, without the need for intermediaries.
With the SUSHI coin, you can help to support this project and be rewarded as the platform grows, but remember to be careful, as DEXs are known to be rather volatile and in some cases may prove to be riskier investments.
While released less than 2 years ago, Polkadot is an innovative platform that has seen quite a bit of success already. Created to connect previously incompatible blockchains (such as Bitcoin to Ethereum, for example), this protocol could make the lives of investors around the globe far simpler. It’s also fast, easy to use and scalable, with the DOT token being usable for staking and governance, as well as a good investment asset.
DOT is also available on numerous exchanges, which is also worth taking into consideration if you’re looking to get your hands on these tokens without having to worry about the inconvenience of signing up to new platforms.
Last but not least, we have Cosmos. Cosmos gives developers an easier way to create their own independent blockchains (known as zones), all of which will be interconnected on the Cosmos network and use the ATOM cryptocurrency. This can provide a means to create faster and more cost-effective DeFi applications. The Global Hub connects all of the user-created blockchains, with ATOM being used for staking and security.
You can also stake ATOM via popular crypto exchanges, which is another bonus that may make it more attractive, especially if you’re looking for a way to earn passive income from your investments
Which DeFi coins should you invest in?
With these 10 DeFi projects alone, we can see that there are several great opportunities out there for investors to take advantage of. One of the best things to do in these situations is to look into the different tokens and platforms that are available. The more you know about your options, the more chances you’ll have of choosing the ideal one.
It can often be a good idea to invest in something that you believe has potential. There are so many projects out there, so you should always aim to back the ones that seem to have the biggest chance of becoming a success in the future.
Is DeFi a safe investment?
Like cryptocurrency, investing in DeFi isn’t usually a guaranteed way to earn money. Being volatile, there’s often a risk of losing funds if you’re not careful, which is why it’s always best to be fully informed and prepared.
The world of DeFi is still mostly unregulated, which means that you will often need to be more cautious when it comes to parting with your cash. While you can’t always guarantee that a DeFi project will give you a return on your investments, several promising ones may fit your requirements. In general, the more popular and well known they are, the more chance there is of making a secure (and profitable) selection.
Another important point to keep in mind is that DeFi hasn’t quite gone mainstream yet, which may be important to consider if you want a more stable investment. However, if you want something new, full of potential and could offer you a high reward in the future, it could be worth looking into at least a few of the projects listed above.
After looking into some of the best DeFi tokens out there and what they have to offer, we hope that you have a better idea of which ones you may be interested in getting involved with. From being built on different blockchains, to their overall purpose; there are so many ways that these projects can vary from one another, so be sure to do everything you can to make the best choice for your needs.
What is DeFi?
Similar to cryptocurrency in many ways, DeFi applications were created to help provide alternative financing options outside of the standard ones that so many of us are used to today. Many Decentralized Finance projects aim to make improvements to the current system, whilst also offering the opportunity to make a profit at the same time. This is one of the main reasons why DeFi has been becoming so popular in the crypto community.
What is the best DeFi coin to invest in?
There are so many options on the market today, but you’re certain to want to invest in the best DeFi tokens possible. The good news is that many crypto enthusiasts would consider the 10 mentioned earlier to be solid choices, so doing a little research into any that seem interesting to you could be a worthwhile move. A few other options that you may want to check out include Maker (MKR), Bitcoin Cash (BCH), and Cardano (ADA), but there are many more DeFi crypto projects out there that could make you a tidy sum
What are the benefits of Decentralized Finance?
For the most part, the reason why DeFi services are intriguing is because of the potential that they offer to their users. For example, DeFi has the capacity to remove the middle man and can even be a better alternative in locations that have less efficient systems. There is a range of other advantages that come with DeFi, with many platforms being more efficient, transparent, flexible and providing new and enticing features.