Are DeFi Tokens Worth buying in 2021?
DeFi Tokens worth buying in the future? Is that right? In this Article learn everything about it. DeFi tokens were popular in 2020. In fact, the number of people who entered in DeFi is growing.
We all know that there are so many possibilities in the crypto world. People started to look for other sorts of investments that are based on blockchain.
Ethereum started to get attention and later there were so many newcomers in the DeFi project.
Everything was going according to plan till the launch of Ethereum 2.0 change everything.
The network is now much powerful than before. You can find so many different projects in DeFi and there are no boundaries for your investment. Many think that Defi is the next bubble waiting to burst.
Since it launched there were so many different projects with different tokens that are gone now. So it is critical to select the best project.
But even with the best project ever, some people just doubt buying tokens. They ask are DeFi tokens worth buying? Read on to find out the answer.
related article: What Are DeFi Tokens? All You Should Know
Consider These Metrics When Buying DeFi Token
Some people think that investing in DeFi is like gambling. But you cannot find an investment that is not involved with some risk.
In fact, the risk is the real adventure in any investment but there should information available to make a decision.
Before investing in a DeFi token you should consider so many different things. That way you can ensure that you have invested in the best project ever.
As we have said there are so many different projects there and you do not need to invest in every one of them one good project will change the way you invest in the future, but you should think about these metrics first:
Developers
The Team of developers is one of the most important infrastructures of a project. A good team will try its best to operate a great project.
They have clear objections and they know what they want in return.
Remember only developers with enough experience can create a good project. The team will change the destination of the project by so far.
DeFi tokens
Token
People are investing in DeFi tokens to get more rewards. So it important to think about the price-to-earnings ratio of other tokens in the platform. Before doing anything you should do your research.
Actually, it helps to know if a DeFi token is overbought or oversell. It may sound a little complex. But the fact is you need to know how much of your networks lies in the daily transactions of the network itself.
Business Model
Just like any other type of investment, the model of business is important. How they are going to get what they want and what picture do they have in their mind for their projects.
If you do not appreciate the look, you should go for another project.
Cons of investing in DeFi
The most important thing is that it is still new. No one knows what will be on the road for the technology.
Many think that Defi is another fraud and it will fade away, but others think that DeFi is a new world full of endless opportunities.
That is why there are more and more people in DeFi looking for new possibilities. The variety of these projects attracts different people.
So it is going to be one of the best investments in the coming years. DeFi tokens are still at the beginning and some of them are very volatile so you cannot say anything about them for sure.
Everything is changing g in the world. The acceptance of cryptocurrency increases. Some so many institutional investors are looking for possibilities in cryptocurrencies.
That is why you can find hope in the future of DeFi. There are so many different types of investments in the future.
Pros of DeFi Tokens
DeFi projects are a solution to the common problem of the people. Aava is one of the DeFi projects that make lending possible. There is no rule except ethics and responsibility.
So there will be more and more people thinking about investing in Defi tokens each day. Vitalik Butterin the founder of Ethereum predict the use of a decentralized app a few years ago.
Investing in cryptocurrency is not as easy as you might think but you should know that it is really easy to invest in DeFi projects.
Before the launch of ETH 2.0, there were so many problems concerning the scalability of the network.
But now it is so much easier to invest in DeFi because there are so many different applications working alongside each other without any problem. So if you need a straight answer for the question: “Are DeFi Tokens worth buying?” we should say yes, they are.
But it is better to think about them in long term. So buy and hold them.
DeFi Tokens worth investing in 2021
Decentralized finance applications are a new generation of financial products that take the advantage of using blockchain in various real-world situations.
In recent years, with the development of blockchain technology, several important projects are made to solve some problems in this field and facilitate different tasks of everyday life.
In the following, we will introduce several DeFi Tokens worth buying in 2021.
Band Protocol (BAND)
This DeFi token belongs to a cross-chain data oracle network that connects smart contracts to real-world data and APIs.
This protocol enables smart contract applications such as tokens, prediction markets, and games to be built on-chain without requiring a centralized oracle single point.
This great project in 2020 had a 3,200% return. Band Protocol aims an important demand: with the development of DeFi projects, they should find a way to connect the real-world data.
Without using centralized providers, these projects should decentralized oracles.
And that’s where Band Protocol comes as a worthy DeFi token. With the surprising growth of DeFi projects, every day a new project uses Band Protocol to provide a decentralized framework to distribute data, which explains why it is one of the best DeFi Tokens worth buying in 2021.
Chainlink (LINK)
Chainlink is another DeFi project that aims to facilitate some tasks for other DeFi applications by allowing them to access real-world data, payments, events, and more without using central systems.
Like the previous project, it is a decentralized oracle service that returned over 600% in 2020.
However, this project has a native currency that is called LINK that has a fixed supply of 1 billion LINK. It is built on Ethereum and could be considered as an ERC-20 token.
This utility token is one of the most useful projects of DeFi that worth investing in in 2021.
With the growth of this ecosystem and developing new smart contract projects, chainlink and other tools that could be used by these projects to connect to the real-world data gain more value.
Today, the LINK token is trading around $28, with its all-time high of $35 last month and an overall upward movement of price in 3 months, it could be considered one of the best DeFi tokens worth buying in 2021.
Maker (MKR)
Maker is one of the most popular DeFi projects that established its autonomous organization on the Ethereum blockchain and offers sophisticated cryptocurrency exchange services using its own stable token DAI.
It earns a continuous fee for governing the system and taking on the risk of any mistake.
This project in 2020 experienced some 208% YTD return. Maker is one of the most popular DeFi projects on Ethereum and managed to lock more than 2 million ETH in Maker contracts.
Maker is an open-source project that could be used by DeFi projects to achieve some cross-chain activities.
DAI is not a new token and could be considered as one of the oldest DeFi tokens worth investing in in 2021 with a 208% return in 2020.
It is one of the most transparent projects that utilize smart contracts to eliminate the requirement to trust others.
Maker’s core function is to make sure that DAI value remains equal to the dollar. This helps to prevent crypto volatility in cross-chain transactions.
Kyber (KNC)
Kyber is another Ethereum-based decentralized financial app that acts as a decentralized exchange that focuses on aggregating liquidity and instant swaps for Ether and ERC-20 tokens.
It is launched in 2018 with an ICO in 2017. Kyber works with liquidity pools called “reserves”, which are made by market markers, token projects, liquidity pools, and token holders, and are used by so-called takers such as DeFi apps, exchanges, and wallets.
As an old DeFi project, Kyber is well-known and is used by many DeFi developers. It provides financial facilities required in financial projects and also offers instant swap services.
Kyber definitely should be considered as one of the DeFi tokens worth buying in 2021 with a return of 400% in 2020.
Polkadot (DOT)
Polkadot is another DeFi project that tries to facilitate services that could be used to empower blockchain technology in everyday life.
It claims to be a next-generation blockchain protocol that can connect several specialized chains into one universal network.
Its focus is strongly on developing infrastructure for Web 3.0, and it is founded by Web3 Foundation. However, its target is to disrupt internet monopolies.
Polkadot provides several solutions for developers of dApps regarding core issues such as scaling, customization, governance, interoperability, and upgradeability.
Its ecosystem offers these services that could be used by its native token, DOT. Without any doubt, Polkadot is one of the DeFi tokens worth buying in 2021.
Its price performance in the last three months shows more than 1000% growth. Since it has a critical position in next-generation blockchain projects, today is the best time for its investment.
Uniswap (UNI)
The Uniswap is another famous DeFi project and financial infrastructure provider that allows trustless transactions.
It offers exchange services between various cryptocurrencies and tokens to facilitate easy interoperability among blockchains.
Just like many other valuable DeFi projects, Uniswap is initially developed to facilitate decentralized finance problems by providing liquidity and instant swaps.
It is another Ethereum-based DeFi project that is open-source and could be used by everyone.
As other DeFi tokens worth buying in 2021, it has a noticeable price performance. To understand its return, it could be adequate to tell that its price from $3-5 in 2020 has achieved to more than $30 in 2021 March.
So if you want to enjoy some profits from well-known DeFi projects, you can take Uniswap seriously and invest in UNI tokens.
In A Nutshel l
DeFi token is so new. There are so many things we do not know about defies. But we did not Bitcoin too. We didn’t know the internet too and We did not know that earth is not flat.
We did not so many things until we think about the little possibility of making mistakes.
Their future could be for Defi. But what can you do about it? Do not put all of your eggs in one basket, but put one or two of them. There will be a great reward for those who have faith in these projects.
As we have seen in the past people had faith in Bitcoin in its early days and now are some of the greatest investors in the world. Sometimes you should trust your instinct.
As the world is changing and people’s demands are changing the way people interact with each other changed. The way people pay their bills is different.
So as the world is changing so fast, why there should not be a tiny room for the possibility of using DeFi in the future. Consider everything and invest your money in tomorrow.
Buying DeFi Tokens from Nominex
Nominex is an advanced cryptocurrency trading platform and exchange that offers many DeFi tokens and ICOs to the traders and investors who want to participate in these markets.
Nominex also provides many interesting and attractive plans that could be used by customers to make even more profits. For example, Nominex users can easily join into its crytocurrency trading tournaments that have considerable rewards.
In addition to these services, Nominex provides a solid trading platform that could be used to buy many cryptocurrencies in different markets. Users can take advantage of all these services in a user-friendly, easy-to-use trading environment with no or very few transaction fees.
Nominex trading platform is a great place to find exotic DeFi tokens that are not listed on many crypto exchanges. These DeFi tokens and ICOs are young cryptocurrencies that could be purchased with very low price and experience surprising growth in short term.
Leave a Reply