DeFi protocols

What is DeFi?

DeFi is an acronym for “decentralized finance.” Decentralized finance is an umbrella term for financial services, products, and solutions that are hosted on a public distributed ledger called blockchain. The idea behind DeFi is to allow anyone and anywhere in the world to access quality financial tools – like borrowing, lending, savings, investments, and insurance offered by traditional financial institutions – without having a bank account or relying on centralized intermediaries (official entities that control financial operations).

Top DeFi protocols

DeFi applications are financial platforms run on public blockchains, such as Ethereum, Solana, Binance Smart Chain, etc. These platforms are called permissionless, because they do not involve third parties to verify and execute financial transactions. Instead of centralized intermediaries, such as banks or credit organizations, financial operations are reviewed, conducted, and recorded automatically on the blockchain by smart contracts – special computer programs.

The industry offers a multitude of different DeFi crypto projects, and on this page, you can learn more about both the trendiest and nascent DeFi crypto projects. DeFi Watch is a DeFi aggregator that allows users to easily search and compare all existing decentralized finance platforms and applications. Using this nifty tool, you can easily identify the best DeFi projects and top DeFi tokens to invest in, as well as track the performance of your crypto portfolio across all DeFi ecosystem.

What to Consider When Choosing a DeFi Platform?

As DeFi crypto projects offer the same financial products as regular banks, it is understandable that many people are interested in DeFi as a way of getting a passive income through staking, yield farming, and savings offered by decentralized finance companies. Here are some things to pay close attention to when you are looking for the best DeFi coins to buy.

Look at the DeFi project’s current market capitalization; Assess the coin’s growth potential; Research about the coin’s previous performance; Examine the project’s roadmap targets and find out what has already been done; Inquire what crypto exchanges list the token of your consideration (where this token can be bought and sold).

While the DeFi crypto list is quite extensive, and new DeFi projects appear regularly, you should understand that most DeFi coins can be undervalued today, but hold a strong potential to dramatically increase in price over time. DeFi Watch allows you to keep track of the top DeFi coins, so you can make wiser crypto investment decisions.