Top 5 DeFi Coins for 2021

There are different DeFi coins in the market that could have a very positive year. This is why we need to understand which are these DeFi coins that could help investors diversify their portfolios. 

Disclaimer: this post should not be considered investment advice. This is only for educational purposes only. Never invest more than what you are able to lose and always ask for information to your professional financial advisors. We are not financial advisors. 

What is Decentralized Finance?

Decentralized Finance makes reference to a growing sector in the cryptocurrency market. This industry is allowing a large number of users to have the possibility to enjoy financial services but in a decentralized way. 

Some projects have expanded in recent months and allowed individuals to stake coins, swap virtual currencies, lend and borrow assets, and many other things. This shows that the entire DeFi market is expanding and reaching a larger number of users. 

In the next sections, we will share with you which are some of the DeFi coins that could attract the attention of investors in 2021. 

KAVA

Kava is currently among the most used and popular DeFi protocols in the market. The platform is allowing users to earn a yield on their crypto funds. They do it with borrowing and lending. Users can lend and borrow stablecoins and other digital assets. The main advantage of this protocol is related to its support to cross-chain assets. 

The KAVA DeFi coin is the digital currency used in this network. The digital asset was sold to investors (40% to private users) and 6.52% of the total supply was sold using the Binance Launchpad. Take into consideration that this is an inflationary virtual currency. 

Balancer

Balancer (BAL) is another DeFi coin we should take into consideration for 2021. Balancer works as an automated market maker (AMM) that works in a similar way to Uniswap but with a set of different characteristics and features. 

This project facilitates liquidity allowing users to earn fees for Ethereum-based assets. Users need to deposit their funds in balancer’s self-rebalancing LPs. Individuals will be able to access and trade the asset. Those users participating will earn a fee for their job. 

UMA

UMA is a DeFi coin that works as the Universal Market Access digital asset. Users can have the possibility to get access to financial markets in a very easy way. Investors can get access to a decentralized derivatives market that has a valuation of $500 trillion. 

UMA is the virtual currency that was released as a decentralized exchange offering (DEO). This DeFi coin could be one of those attracting investors to the DeFi market in 2021. Purchasing UMA could be a good strategy to diversify your portfolio in the DeFi space. However, this is not investment advice.

UNI

Uniswap is one of the most popular decentralized trading protocols in the market. It is allowing users to trade DeFi coins and other digital assets. This is also an automated market maker that became very useful in recent months after the expansion of the DeFi space. 

UNI works as a governance token for which there are 1 billion units. Users can start trading this virtual currency and profit from price fluctuations. In addition to it, as it happens with the other DeFi coins, it is possible to use it to diversify portfolios. 

LINK

We can think of Chainlink as the largest DeFi market blockchain protocol. This virtual currency (LINK) is now among the largest in the world and it has allowed users to get exposure to the DeFi market in a very profitable way over the last years. 

Chainlink is a network that provides Oracle services to blockchain protocols in the cryptocurrency market. It aims to bridge the gap that exists between smart-contracts and real-world applications. 

In general, blockchain networks cannot use and process data from outside without the help of oracles. This is why Chainlink is helping the entire crypto ecosystem to grow and offer better services to users. 

Furthermore, the LINK virtual currency can be purchased in a wide range of exchanges and used to get exposure to the entire DeFi space. At the time of writing, LINK became one of the largest virtual currencies in the world. It is now the 10th largest in terms of market valuation and it has a price of $12. Moreover, its market valuation is now $4.7 billion. 

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