If you're looking to get involved in the world of cryptocurrency, you've probably heard of "defi." Defi is short for decentralized finance, and it refers to the various financial applications that are built on top of the Ethereum blockchain. In other words, defi is about using cryptocurrency to do things like borrowing and lending money, earning interest on your digital assets, or even taking out insurance policies.
With the rise of defi, there are now dozens of different coins and tokens that you can use to take advantage of these new financial opportunities. In this blog post, we'll take a look at some of the best defi coins for 2022 so that you can make an informed decision about which ones to invest in.
Maker is a decentralized autonomous organization (DAO) that governs the Dai stablecoin system. Dai is a digital currency that is pegged to the US dollar, meaning that its value doesn't fluctuate as much as other cryptocurrencies. This makes it ideal for use in transactions where stability is important, such as when you're borrowing money or paying back a loan.
MKR holders can vote on changes to the Dai system, such as what interest rates should be or how large the collateral requirements should be. They also receive a portion of the fees charged by the system.
Compound is an Ethereum-based protocol that allows users to earn interest on their cryptocurrency holdings or borrow crypto from others using their crypto as collateral. It's similar to Maker in that it helps people take advantage of the rising value of cryptocurrency without having to sell their holdings.
Compound currently supports 14 different assets, including popular ones like ether (ETH), USDC stablecoin, and Chainlink (LINK). COMP token holders receive governance rights within the Compound protocol and also earn a portion of the fees charged by the system.
3. Synthetix (SNX)
Synthetix is a protocol that allows users to trade synthetic assets—that is, assets that derive their value from something else. For example, you could trade a synthetic asset that tracks the price of gold without actually owning any gold yourself.
The Synthetix network currently supports over 70 different synthetic assets, including fiat currencies, commodities, stocks, and even crypto assets. SNX token holders can mint new synthetic assets and also earn fees when users trade them. They also have governance rights within the Synthetix protocol.
So, there you have it- our top three picks for the best Defi coins to buy in 2022. We hope that this information has been helpful and given you a few ideas about where to invest your hard-earned money. Remember, always do your own research before investing in any cryptocurrency, and never invest more than you can afford to lose. Happy trading!
Your Friend,
Wade
