Top 5 Best DeFi Token with Bright Future

best defi coin

The development of the cryptocurrency industry or crypto currency lately is very significant. One of the impacts of the increasing popularity of this cryptocurrency exchange, the demand for DeFi or Decentralized Finance is also increasing. For those of you who want to gain a lot of profit by investing in DeFi, you can refer to the review of the following recommendations for the 5 best DeFi coins that are considered to have a bright future and prospects, making them suitable for long-term investments.

What is DeFi?

Compared to the popularity of cryptocurrencies such as Bitcoin or BTC, DeFi is not very familiar to many people, especially among ordinary people. However, with its advantages, it is not impossible that DeFi will become one of the most favorite digital assets to invest in in the future.

DeFi or Decentralized Finance is a decentralized financial system, in which there is no financial intermediary or centralized authority between sellers and buyers. This means that no one party can record, pause, or even stop the ongoing sale and purchase transactions.

DeFi itself is a combination of financial applications, developed from Blockchain and Cryptocurrencies. In the Blockchain used, there are 2 devices used, namely Smart Contracts and Decentralized Applications. Cryptocurrency owners can invest their assets through DeFi, and then earn in return in the form of interest.

DeFi is very feasible as an alternative in investing. The reason is, DeFi users will be able to feel the ease in carrying out financial activities. DeFi allows you to borrow and provide loans on an peer to peer (P2P) manner, aka no intermediaries or other parties are required.

Top Recommendation DeFi Token

1. Uniswap (UNI)

With a trading volume of over $205 billion, Uniswap (UNI) is one of the most popular and promising DeFi coins today. Uniswap is a decentralized crypto trading protocol, whose protocol has more than 72 thousand liquidity providers and 200 DeFi integrations.

To date, it is estimated that more than 40 million trades have been facilitated by Uniswap. There are interesting features offered by Uniswap such as flash swaps, token swaps, programmable liquidity, and decentralized and anti-manipulation price oracles. Through Uniswap, developers can integrate projects with thousands of crypto tokens.

2. Chainlink (LINK)

The next best DeFi coin that is also highly recommended to buy is Chainlink (LINK). Chainlink has a decentralized oracle-based network, so it can provide reliable input and output. Chainlink's oracle network is not easily damaged for complex smart contracts on any type of blockchain.

Chainlink service itself has been widely used by a number of the world's leading DeFi protocols. This is because Chainlink has proven to have the capacity to power the future of big smart contracts. To date, it is estimated that Chainlink has a maximum token supply of 1 billion LINKs, of which 444 million LINKs are in circulation.

3. UMA (UMA)

UMA is a DeFi coin which stands for Universal Market Access. This DeFi coin helps the creation of synthetic assets on Ethereum quickly, flexibly, and of course guaranteed security. In this way, DeFi owners will be able to access traditional market instruments.

Using UMA, you can create tokens to track the price of any asset. Until now, the total circulation of UMA is estimated at 62 million UMA. The UMA token, which was launched in 2018, has a total supply of around 102 million UMA. UMA itself relies on sponsors, liquidators, and disputes as integral elements of its network.

4. PancakeSwap (CAKE)

The next recommended DeFi coin is PancakeSwap (CAKE). PancakeSwap is a decentralized exchange, which then allows its users to trade cryptocurrencies and tokens, without any middleman between the seller and the buyer. The name of this DeFi coin is inspired by the trend of naming food names.

PancakeSwap, which was launched in 2020, carries a concept called Automatic Market Maker. Based on this concept, you as a user will trade with a pool of liquidity, to enable crypto trading to occur.

CAKE is the native token owned by PancakeSwap. The function of this CAKE is as an governance token and also to provide farming and staking services. Users can make purchases of CAKE tokens through liquidity, staking, and can also make purchases via exchange.

5. Synthetix (SNX)

The next best DeFi coin that is also very appropriate for you to buy is Synthetix (SNX). Synthetix is ​​an asset insurance protocol distributed on the blockchain. This protocol is built on the Ethereum (ETH) network, allowing its users to issue and trade Synthetix decentralized assets.

By using Synthetix, users will be able to print, hold, and trade various derivative assets, such as FIAT currencies, stocks, and commodities. Synthetix will also drive value and liquidity to the underlying assets, while offering increased accessibility to traditional financial assets and new trading strategies.

As a Synthetix user, you need to know that Synthetix has some unique features. One of its uniqueness is its ability to convert Synths, without any partners, aka anyone can do it. Not only that, Synthetix also has functionality that provides almost unlimited levels of liquidity.

Being careful in choosing DeFi coins in cryptocurrency exchanges is one step to be able to get a high return. For those of you who need a recommendation, it is highly recommended to buy the 5 best DeFi coins mentioned above. The purchase of these 5 DeFi coins can be done easily and practically, through the trusted crypto exchange.

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