Invest in defi coins

This beginner-friendly page takes you through everything you need to know when investing in defi coins. We cover the different ways you can buy defi coins, offer in depth market analysis, and include the latest defi news.
By: Prash Raval
Prash Raval
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or… read more.
Updated: Apr 4, 2022

Ways to invest in defi coins

If you want to invest in defi coins, the first thing you will need to do is register with an online broker or exchange. Most often, an exchange is the best place to buy, as that’s where you will find the biggest variety of coins. Exchanges are like giant marketplaces where you can buy, sell, and trade coins with other investors 24/7. 

There are different brokers and exchanges available and they all offer a range of features and services. Some require you to buy a mainstream coin such as BTC or ETH before you can exchange for a defi coin. While others offer wallets where you can securely store your coins. There are other methods available such as ETFs and if you want to learn more, check out the links below with useful information to help you get started.

What is a defi coin?

A defi coin is a cryptocurrency that offers financial services and is based on a public blockchain. Defi is short for decentralised finance, unlike traditional finance (TradFi), defi has no central authority. Defi coins can be used for the same purposes as fiat currency, without the need for a third party. 

One of the key benefits of using a defi coin is the use of blockchain technology within the financial services sector. You can invest, save, pay, borrow, and lend all without needing to use a bank. All of this is made possible by using blockchain networks and smart contracts resulting in a fairer and much faster transaction process. 

Smart contracts are the backbone of decentralised finance. These contracts are programmed to execute functions automatically. For example, when you make a payment via a bank using traditional finance methods, a series of third party checks occur before funds are sent or received. Using a defi coin to make the same payment would speed up the process and eliminate errors and fees, because the rules are programmed in.

How do defi coins work?

They use blockchain technology to replace the role that is played by a bank in the traditional financial system. While each coin is different, they generally use a system of incentives to encourage people to provide the collateral that allows them to offer financial services like trading and lending, and then control of the network is spread out among its users.

This decentralisation, achieved by giving those who own coins voting rights to shape the future of the project, means that these projects work very differently from the traditional system. There is no single point of authority that can act as a gatekeeper to deny someone access to the service, and blockchains ensure that all transactions are fast and transparent. 

Often these projects use smart contracts (agreements that are written in code) to set the rules for exchange rates, interest payments, and other financial transactions. These contracts execute automatically and can allow the coins to offer a better service than a similar company in the traditional world.

Examples of DeFi coins

The number of defi coins continues to grow and each one offers different benefits and uses. Below are a few examples of some of the top defi coins available. 

  • Binance coin (BNB): The native coin of the worlds largest crypto exchange Binance, is one of the top defi coins around. BNB operates on its own blockchain, BNB Chain and offers access and discounts to other coins on the Binance exchange. You can learn more about BNB in our guide here. >
  • Uniswap (UNI): Defi coin UNI, is the native token of decentralised exchange Uniswap. Users of UNI benefit from having their trades executed directly on the ethereum blockchain. Unlike regular exchanges, Uniswap is not governed by a single authority. To learn more about UNI, you can visit our detailed guide here.>
  • Terra (LUNA): The Terra platform offers a payment system that is completely decentralised and is underpinned by its native coin, LUNA. The network is designed to work on multiple blockchains and is currently live on ethereum and solana. It removes the need for banks, credit card networks, and payment gateways. For a detailed understanding of LUNA, you can check out our guide here. >

How to invest in defi coins?

There are a range of ways to invest into the crypto market and defi coins can be accessed using a few different methods. Below we’ve briefly explained the top ways to invest in defi coins. 

  • Brokers. One of the easiest ways to invest in defi coins is to use a cryptocurrency broker. These platforms are particularly useful if you want to trade coins using short term strategies. The best brokers have low fees and simple to use interfaces. 
  • Exchanges. Using an exchange lets you buy, sell, and trade coins with other investors or traders. Exchanges are like giant marketplaces with a range of coins available and often have the best and most up to date prices. 
  • ETFs. Exchange traded funds allow you to invest in a coin, or a selection of coins and can be traded on the stock market. ETFs are an easy way to get exposure to a range of cryptocurrencies. 

Where can I buy defi coins now?

The best place to buy defi coins is through a broker. There are lots of brokers around and choosing the best one can be a difficult task. Our crypto experts have made your decision easier and selected some of the best rated platforms around offering defi coins. Simply click any of the links below to get started in just a few minutes.

1
Min. Deposit
$10
Promotion
User Score
10
Accepts customers from the USA
Deposit $100 and get a $10 bonus!* Build a diversified portfolio with crypto, stocks, and ETFs — all in one place.
Trade on the world's leading social trading and investing platform
Start Trading
Description:
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
2
Min. Deposit
$0
Promotion
User Score
9.3
No Hidden Fees
Instant Trading
Secure & Transparent
Start Trading
Description:
World's longest-standing crypto exchange. Since 2011 Bitstamp has been providing a secure and reliable trading venue to over four million individuals and a range of institutional partners.
Payment Methods
Full regulations list:
3
Min. Deposit
$0
Promotion
User Score
8.7
Earn up to 3.5% back in crypto on every purchase
No hidden fees or minimum balance
Immediate Trade Execution
Start Trading
Description:
BlockFi was created to provide credit services to markets with limited access to simple financial products. BlockFi sets itself apart from other crypto service providers by pairing competitive rates with institutional-quality benefits. BlockFi is the only independent lender with institutional backing from investors that include Valar Ventures, Galaxy Digital, Fidelity, Akuna Capital, SoFi, and Coinbase Ventures.
Payment Methods
Full regulations list:

Fact-checking & references

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Risk disclaimer

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.