Best DeFi coins in 2022

DeFi has become one of the most popular sectors to invest in within just a few short years. This page outlines the best DeFi coins to buy right now and explains what makes them stand out.
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Updated: Sep 26, 2022

On this page, we provide a list of the 5 best DeFi coins that you can buy right now. In addition, we explain why you might want to invest in DeFi, exploring the pros and cons of the industry and the potential that DeFi coins have as investments.

What are DeFi coins and why are they so important?

Breaking down DeFi into its two separate parts is the best way to define DeFi coins. DeFi stands for decentralised finance; a DeFi coin is a decentralised cryptocurrency with use cases in the financial sector. 

To elaborate further, decentralised means that there is no central governing authority presiding over operations, and finance specifies that this is directly related to things like investing and trading. 

A DeFi coin can come in a variety of forms, though they are always digital. For example, one may enable people to earn money by staking or loaning it, whereas another may facilitate card payments for goods and services. You can find out all a coin’s central purpose by researching it, though we have done the groundwork for you with our top five options below. 

How and where can I buy DeFi coins now?

To help point you in the right direction, we have listed some of the best places to buy DeFi coins online in the table below. To get involved, simply click on one of the links to sign up. Then, deposit funds from an approved source and search for your desired coin in the platform’s interface. 

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5 Easy Steps to buy DeFi coins

The process of purchasing DeFi coins is quick and simple, so don’t worry, even if you’re new to crypto investing. These are the steps to follow in order to complete your investment:

  1. Choose an exchange. The easiest way to purchase DeFi coins is through a cryptocurrency exchange. These are effectively giant marketplaces for users to buy and sell different crypto tokens. Check out the comparison table above for our recommended options, or head on over to our reviews if you need more information.
  2. Create an account. Once you have selected an exchange, go to the website and create an account. This typically involves providing some contact information and a copy of your photo ID.
  3. Deposit funds. The next step is to log into your newly created exchange account and add funds to pay for the DeFi coins you want to purchase. You can choose to transfer cryptocurrency from a connected wallet, and some exchanges accept transfers of fiat money like GBP and USD via a bank transfer or credit card payment.
  4. Purchase DeFi coins. Search for the tickers of the coins you want to add to your portfolio. Then, enter the number of coins you want, and check you are happy with the price and incurred fees.
  5. Execute your order. Finally, once you are happy with everything, execute the transaction and purchase the DeFi coins you have identified. They should be added to your account instantly, and you are now free to move them to a wallet or leave them in your account.

Top 5 DeFi coins to invest in

We have listed the five best DeFi coins that money can buy right now. Below, our analysts have provided a clear description of their features and what they have to offer for investors. Read on to get started. 

#Coin symbolCoin nameTrade now
1BNBBinance Coin
2AVAXAvalanche
3UNIUniswap
4LUNATerra
5LINKChainlink
List selected by our team of analysts, updated 4th November 2021

1. Binance Coin (BNB)

Binance Coin is the native token of the Binance exchange, which is the world’s largest cryptocurrency exchange by trading volume. Launched via an initial coin offering (ICO) of 100 million tokens in July 2017, BNB is one of the most valuable DeFi coins on the market. 

BNB was originally launched on the Ethereum blockchain, but it later segued to its own blockchain, the Binance Smart Chain (BSC). This blockchain has become home to a whole host of new DeFi coins and applications.

The original purpose of BNB was to provide discounts to those using it to purchase tokens on Binance, though this is set to be phased out by 2022. In the future, it will serve as a deflationary store of value and unit of exchange that burns 20% of its supply each year to increase scarcity.

2. Avalanche (AVAX)

Launched in September 2020, Avalanche claims to be the fastest smart contracts platform in the entire blockchain industry, offering low fees and an eco-friendly stance. In the long run, it aims to challenge the dominance of Ethereum. 

Avalanche’s native token, AVAX, is used to pay transaction fees over the network and can also be staked for rewards to help secure the network. AVAX has quickly ascended to become one of the most valuable DeFi coins on the market. 

Its more eco-friendly proof-of-stake (PoS) consensus mechanism has helped the platform grow in the wake of mounting pressure on DeFi by environmentalists. This is because the other commonly used consensus mechanism, proof-of-work (PoW) – which is used by Bitcoin – has experienced controversy because of its heavy energy usage. 

3. Uniswap (UNI)

Like Binance, Uniswap is one of the most popular cryptocurrency exchanges on the market. However, Uniswap is completely decentralised, meaning it is not governed by a single central authority. The rapidly growing platform was launched in November 2018.

UNI has a wide variety of uses on Uniswap. Specifically, it can be used to fund partnerships, grants, liquidity mining pools and other growth initiatives. In addition, UNI holders can vote on key decisions related to platform governance.

These days, UNI is one of the most valuable DeFi coins on the planet, benefiting from the expanding influence of the Uniswap exchange. 

4. Terra (LUNA)

Created in January 2018, Terra is a cryptocurrency project that is designed to prevent users from paying hidden fees with online transactions. Those who mine on the Terra platform are rewarded with LUNA, an intelligent coin that regulates its own supply, minting and burning tokens based on market conditions. This article has the aim to inform you more about buying Terra.

LUNA can be used as a form of speculative investment, for staking to receive rewards and secure the Terra network, and it also provides voting rights for token holders. 

Chainlink is all about bridging the gap between blockchain platforms and real-time data. Founded in 2017, it has quickly become adopted by many major platforms, such as Yearn Finance and Aave, and even Google uses it to create crypto data sets.

The LINK coin itself is used to pay for the data provided by Chainlink, and it is also distributed as a reward for those who provide the data in the first place. As the demand for data continues to grow, Chainlink appears poised to continue its ascent up the DeFi ladder. 

Before investing in DeFi coins

Below, we have outlined the main advantages and disadvantages of investing in DeFi tokens. 

Pros

  • Allows far more people access to financial services
  • Makes it possible to send money abroad much more cheaply
  • The coins associated with successful projects can increase in value many times over
  • Millions of people use DeFi platforms already and this number is increasing all the time

Cons

Benefits of investing in DeFi coins

The potential benefits of speculating on the value of DeFi coins are obvious. The dramatic growth experienced by certain coins is eye-catching, and these instances of exponential growth are more frequent than with other assets like stocks and commodities.

DeFi itself offers numerous benefits for users. For instance, they can borrow and lend with cryptocurrency, invest in and trade with digital assets through a decentralised exchange (DEX) without having to sign up, and transfer money abroad more easily without having to use traditional and often costly financial services. Moreover, as specific platforms become more successful, their native token will likely increase in value. 

In addition, the decentralised nature of DeFi tokens puts control of their governance into the hands of users via things like voting rights. This refreshing approach is a far cry from the tried-and-tested tactics of the corporate mainstream. 

Risks of investing in DeFi coins

Despite the pros of DeFi tokens being clear, the risks are equally overt. While giant price surges might be eye catching, these events are highly unlikely to occur for the vast majority of cryptocurrencies. As a result, a random stock will tend to perform better than a random cryptocurrency. 

In addition, the threats of rug pulls, theft and other nefarious activities are heightened with DeFi tokens compared to more traditional financial assets. This is underscored by a lack of clear regulation, which could also damage the growth of this sector as new rules are established that impose impractical limitations.

These regulatory concerns are not present with traditional finance (TradFi), which has had many more years to define itself. Moreover, most consumers will find TradFi services more accessible and easier to understand than DeFi alternatives which require more expertise to use. It is also difficult to choose the best coins to purchase, because many provide such a similar service and are not easy to differentiate from one another.

How can I find the best DeFi prospects?

If you are scouting for the best DeFi additions to your portfolio, there are a few pointers you should keep in mind. While there are key components of due diligence that don’t change from asset type to asset type – such as analysing a company’s balance sheet – there are some unique ways to identify a crypto winner. 

Unlike stocks, which are institutionally driven, cryptocurrency is a sector that is much more retail driven, which especially manifests itself on social media. As a result, platforms like Twitter can often be awash with conversations about up-and-coming projects to keep an eye on. 

Moreover, another thing to really focus on is volume: the financial value of a specific DeFi coin that has been traded in a given 24-hour period. In crypto, high volume generally correlates with an increasing price. In a similar vein, the popularity of a platform itself can indicate that it is a good product, which could lead to its native token rising in value. 

Finally, while the DeFi coins with the largest market cap are typically the most reliable, it is smaller, newer cryptocurrencies that can often provide the greatest short-term growth. 

Latest DeFi coins price analysis

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The global financial crisis in the past year or so has resulted in a spike in crypto adoption around the world. Cryptocurrencies have shown great potential of being an effective solution for inflation despite the effects of the current macro environment. More and more people ranging from financial…
iTrustCapital, a leading crypto Individual Retirement Account (IRA) software platform, has launched a staking program that will see clients earn rewards when they hold their crypto assets within IRAs. Amid the growth in cryptocurrency adoption and increased demand for digital assets across the investment market, iTrustCapital’s latest program…
As the cryptocurrency industry navigates the latest leg of the market downturn, leading digital assets platform Grayscale is offering a new investment product for the market. The company’s crypto news published today 6 October announced a private co-investment vehicle that will leverage opportunities in the bitcoin mining industry.
Cake DeFi, the most dynamically growing fintech firm, which is based in Singapore and provides seamless DeFi access, has launched Ethereum (ETH/USD) staking, Invezz learned from a press release. With this, Cake is offering a tradable token, which users can sell in the open market, ensuring additional access to…

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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 >

Charlie Hancox
Financial Writer
Alongside his passion for trading, Charlie has represented Great Britain and won national championships as a water polo player, and as a budding film director, has… read more.