Do you want to invest in cryptocurrencies? If you are just starting out, you should know that there are currently thousands of different cryptocurrencies. The first question you should ask yourself is what category of cryptocurrencies you want to buy.
For example, the market includes various categories of coins such as meme coins, non-fungible tokens (NFTs), coins related to artificial intelligence, gaming, etc. Right now, there is a very promising category, which is DeFi tokens. Decentralized Finance Development company is a sector with a lot of future potential, in which several cryptocurrencies are competing fiercely to stand out.
Do you want to buy a token related to the DeFi system in 2024? Discover in this guide which are the best DeFi cryptocurrencies to buy in 2024 and which are the platforms to do so.
The main question: What is DeFi?
Before we delve into the details of cryptocurrencies, let's talk about what DeFi is. To start, the acronym stands for Decentralized Finance . It can be defined as a set of applications that allows creating decentralized finance, that is, without intermediaries . Two key concepts in this definition are “application” and “decentralized.”
To automate its processes, the DeFi system uses applications. These applications are called dApps (decentralized applications) and work thanks to smart contracts. The latter are computer programs that allow the application to automatically run once certain conditions are met . With a decentralized model, DeFi promotes faster and more secure solutions than traditional finance, since everything is automated.
The last major DeFi feature brings us back to cryptocurrencies . To function in a decentralized manner, applications typically use a cryptocurrency or token . That's why we talk about DeFi cryptocurrencies (or tokens). Currently, this is one of the most important categories in the world. Although Ethereum is the main cryptocurrency in the DeFi space, the sector is made up of hundreds of other DeFi examples, such as other tokens and cryptocurrencies. Additionally, new projects continue to enter the market.
DeFi crypto: Is the investment convenient?
The DeFi field has strong attraction among investors. For what reasons? At a time when many people still do not understand the usefulness of cryptocurrencies, the DeFi ecosystem has a concrete application .
This has the advantage of providing more freedom to users. In fact, who hasn't complained about the time lost or the problems associated with having to go to the bank or contact customer service? With a DeFi system, the user returns to the center of the service. This ambition fits perfectly with the growing need for consumer freedom and empowerment .
The DeFi system operates through dApps and cryptos that meet important needs and have immense disruptive power . In fact, the objective is to change many of our habits and redefine the relationship between the “bank” and the consumer. DeFi has a much stronger (and more useful) ambition than other areas of cryptocurrencies, such as meme coins, for example.
Although Decentralized Finance Development company is still in the shadow of traditional finance, this field is in the process of structuring and no one can ignore it today. Even large banks are beginning to develop DeFi products, aware that this represents the financial model of the future .
Best DeFi Cryptocurrencies in 2024 Our selection of DeFi cryptocurrencies prioritizes the ability to develop decentralized applications (DApps) on the corresponding blockchain. But that is not all! The cryptocurrency in question must be able to interact with other ecosystems through various communication solutions, such as bridging or the establishment of parallel chains .
Ethereum
What is Ethereum (ETH)? Ethereum is the second cryptocurrency in the world in terms of capitalization. Along with Bitcoin, Ethereum is one of the two cryptocurrencies that dominate the market. However, unlike BTC, Ethereum focuses on the DeFi (Decentralized Finance) segment.
Its blockchain allows the creation of decentralized applications in different fields, such as NFTs (Non-Fungible Tokens), decentralized banking services (DeFi), games, among others.
Currently, Ethereum is by far the chain with the most applications . Last year, the blockchain implemented a major update called “The Merge,” which reduced its energy consumption by 99%, which is a significant advantage in the current context.
Solarium
What is Solana (SOL)? The Solana cryptocurrency saw a huge surge, especially in 2021. Since 2022, it has had some difficulties that have caused its price to drop. Despite this, the Solana blockchain network has managed to remain among the top ten in the world in terms of capitalization.
Like Ethereum, the Solana cryptocurrency enables the use of smart contracts for decentralized applications. Solana's main strength is its high scalability , that is, its ability to process a large number of exchanges.
Cardano
What is Cardano (ADA)? Cardano (ADA) is a cryptocurrency that competes directly with Ethereum. Like Solana, ADA is considered one of the so-called “Ethereum killers.” It was launched by Charles Hoskinson, an influential and respected figure in the crypto world.
The Cardano network is built on solid technology and has an ambitious roadmap . At the time of writing this guide, Cardano is ranked 8th in terms of market capitalization, worth $9.32 billion.
Avalanche
What is Avalanche (AVAX)? Avalanche is a fairly new crypto launchpad development, having been launched in September 2020. Emin Gün Sirer, a computer scientist and professor, is the main figure behind the development of the AVAX coin. The Avalanche ecosystem is rich and complex , consisting not of just one blockchain, but of three . Recently, the network rolled out a long-awaited update called Curtain, which aims to improve the network's capabilities and increase its appeal.
Suitable What is Aptos (APT)? Aptos is a layer 1 blockchain that allows the deployment of decentralized applications. Their programming language for smart contracts is called Move. Although it only hit the market in 2022, this cryptocurrency is already considered one of the main “Ethereum killers.”
Its main advantage is its great scalability , estimated around 150,000 transactions per second (TPS). As a sign of its appeal, the cryptocurrency project has managed to successfully raise significant funds in a difficult financial context.
Uniswap
What is Uniswap (UNI)? Uniswap is a fundamental currency in the field of DeFi (Decentralized Finance). Because? Because Uniswap is the largest decentralized exchange in the world . A DEX (Decentralized Exchange) is a cryptocurrency exchange platform where users can buy and sell digital assets directly and without the need for intermediaries.
It offers similar services to centralized exchanges such as Binance, Crypto.com or Coinbase, but with a fundamental difference: everything is done in a decentralized way. In Uniswap, for example, users directly provide liquidity.
Uniswap (UNI) Prices The UNI token is essential for the functioning of the DEX. By purchasing UNI tokens, users can then exchange them for the token of their choice.