What are DeFi stocks ?
DeFi stocks are companies that participate directly or indirectly in decentralized finance (DeFi). DeFi is a new area of digital finance that harnesses the power of smart contracts in blockchain technology to validate and execute financial transactions.
The spirit of DeFi is to bypass centralized financial institutions, such as traditional banks and clearing houses. Over time, this will allow for greater transparency and lower transaction costs.
There are different types of companies labeling themselves under the DeFi banner. For example, companies like IBM are helping other companies move transactions to blockchain. Mastercard intends to use blockchain to facilitate its current operations. Other companies are providing access to DeFi platforms for investors to invest in DeFi projects.
Although the DeFi space is expected to become an $800 billion industry, it is still relatively new. Therefore, it is prudent to diversify one’s portfolio across a number of DeFi stocks that already have an established revenue stream.
Are DeFi stocks a good investment?
Here are a few reasons why you might want to learn how to invest in DeFi stocks today.
DeFi sector to grow to $800 billion.
By 2020, decentralized finance grew 14-fold and is now worth about $80 billion. Although still relatively small, the sector is expected to grow to a market capitalization of $800 billion over the next decade.
As more and more businesses, communities and individuals use cryptocurrencies and blockchain networks, DeFi stocks will also capitalize on increased adoption by helping to drive underlying revenues.
DeFi stocks embracing digital finance will benefit stocks holders.
Many analysts point out that decentralized finance poses a threat to centralized institutions. After all, if all transactions are conducted on a public ledger that cannot be manipulated, human error and accounting problems of centralized institutions could be a thing of the past.
Therefore, companies that adopt DeFi today are likely to reward stocks holders in the long run. Those that don’t may be left behind. Companies like Block Inc, IBM and Mastercard are just a few that are already looking to the future and incorporating DeFi technology into their operations.
How to buy DeFi stock
If you’re looking for the most popular exposure to the DeFi industry, buying DeFi coins is by far the way to go. Follow this 5-step guide to buying DeFi coins and profit from this emerging sector of digital finance.
Step 1: Create a wallet
It’s important to store your DeFi coins in a safe and secure cryptocurrency wallet. It doesn’t get any better than the free downloadable DeFi Wallet.
Step 2: Adding DeFi coins to the wallet
Now you need to add DeFi coins to your wallet so you can store them safely once purchased. Click on the indicator and search for DeFi Coin.
Step 3: First buy the Binance Smart Chain (BSC)
You must first purchase the Binance Smart Chain and then convert it to DeFi Coin. Tap Smart Chain in the trusted wallet and then tap buy. At this point, you may need to provide verification documents and confirm the transaction with your bank.
Step 4: Convert BSC to DeFi Coin
Now that you have BSCs in your wallet, go to the browser section at the bottom of the screen, or Dapps, and open PancakeSwap. Once there, click on Exchange and set the slippage to 15% to convert your BSC to DeFi Coin.
Pancakeswap will not charge you any fees or commissions for trading DeFi Coin.
Where to buy DeFi stocks
If you want to buy DeFi stocks, you can do so with an FCA regulated broker.
You can buy stocks from around the world and access other markets such as commodities, indices and cryptocurrency markets with Bitcoin (BTC), Ethereum (ETH), Uniswap (UNI), Luna (TERRA), Avalanche (AVAX), AAVE and many more.
In addition, you can access products such as CFDs, which allow you to profit from the ups and downs of the stock and cryptocurrency markets.
The growth of the DeFi industry is undeniable. One of the ways to capitalize on the growth of the sector, which has exceeded $800 billion, is to have direct exposure to DeFi.
DeFi Coin is a community-driven token where developers have skin in the game as they burn all their tokens to participate with everyone else. Not only is there a high level of transparency, but holders can earn passive rewards and see their investment grow over time.
You can buy DeFi Coin through DeFi’s popular decentralized cryptocurrency exchange, Pancakeswap, without paying any fees.