Skip to main content

5 Best DeFi Coins To Look Out For In December 2022

By December 15, 2022May 16th, 20234 minute read

Decentralized Finance (DeFi), one of the emerging industries in the blockchain world, uses a blockchain-based protocol to do away with intermediaries like banks and financial organizations from all financial transactions.

Let’s learn about this concept and the top DeFi coins to look out for in December 2022.

What is DeFi?

Financial services provided on open blockchains, especially Ethereum, are referred to as DeFi (or “decentralized finance”). Earning interest, borrowing money, lending money, purchasing insurance, trading derivatives, trading assets, and other activities are all possible with DeFi; the process is quicker and doesn’t involve any formalities or a third party. In addition, DeFi is universal, peer-to-peer (meaning between two users, not routed through a centralized system), pseudonymous, and available to everyone, much like cryptography in general.

Advantages of DeFi

  • Open: You don’t have to “open” an account or apply for anything. By creating a wallet, you can simply gain access.
  • Pseudonymous: Your name, email address, or other personal data is not required.
  • Flexible: You don’t need to wait for lengthy transfers to finish, seek permission, or pay exorbitant fees to shift your assets anywhere at any time.
  • Fast: Interest rates and incentives can be much greater than on traditional Wall Street and often update quickly (as rapidly as every 15 seconds).
  • Transparent: All parties can view the complete list of transactions (private organizations rarely provide that type of transparency)

The DeFi project offers customers several financial services that are typical of conventional financial institutions, such as loans, lending, and insurance.

Get WazirX News First

Since not all crypto projects on the market offer these financial services as part of their portfolio, DeFi projects are regarded as a crucial component of every diversified investment strategy.

Keeping up with the top DeFi projects in such a dynamic blockchain ecosystem might be challenging. We performed in-depth research for you to identify the best DeFi projects to invest in for December 2022.

Let’s have a look at a few of them.

5 best DeFi coins to invest in December 2022

#1 PancakeSwap

PancakeSwap is a Decentralized Exchange (DEX) project based on the BNB chain that enables users to swap BEP-20 tokens quickly and affordably. Given its token value, it has shown strong growth and is unquestionably an excellent investment. The project’s native coin is called the CAKE token.

On PanCake, you can trade NFTs on its NFT Marketplace, swap BEP-20 tokens, stake cake tokens in syrup pools, and lend and create liquidity on the Automated Market Maker (AMM).

PancakeSwap is extremely safe to use from a security standpoint; it has never been compromised. The only dangers associated with implementing a pancake swap exchange are the potential for temporary losses and field scams.

#2 Lucky Block

A new DeFi coin to keep an eye on is Lucky Block, whose project uses blockchain technologies to offer a platform for play-to-earn and prize draws. Through smart contracts and the Binance Smart Chain (BSC), Lucky Block intends to promote transparency through its platform for international prize draws.

The native digital token, LBLOCK, is at the heart of this ecosystem. Users with LBLOCK tokens can purchase tickets with no transaction fees and receive immediate payouts on daily jackpot winnings.

One of the biggest Decentralized Exchanges (DEXs) in the DeFi industry, Pancakeswap, supports the currency.

#3 Decentraland

A virtual reality platform driven by the Ethereum blockchain is called Decentraland. Using MANA, Decentraland’s native token, users of the platform can buy, hold, and trade virtual real estate.

An ERC-20 token called MANA can be used to fund various in-game purchases as well as the ecosystem as a whole. MANA was one of the top-performing metaverse tokens in late 2021 in terms of performance.

#4 SushiSwap

SushiSwap, which debuted in August 2020, is yet another well-known DeFi project that offers a decentralized, community-driven platform for trading, earning, stacking, lending, and borrowing cryptos.

A Decentralized Exchange (DEX) called Sushi Swap operates on the idea of an Automated Market Maker (AMM). Users can trade crypto tokens, but no central authority oversees the transactions. Sushi Swap, in contrast, uses smart contracts to handle trades and automatically establishes the price using mathematical algorithms.

Its native token, Sushi, is an excellent choice for investment based on price forecasts. Moreover, Sushi can emerge as a market leader in the crypto industry thanks to its outstanding credibility and liquidity metrics.

#5 Cosmos

One of the best DeFi coins in 2022 and a distinctive DeFi project, Cosmos. The Cosmos network seeks to address the issue of blockchain interoperability, which enables communication across different blockchains.

Cosmos has provided a way for chains to share information and speed up transactions between them by using open-source tools.

The Cosmos hub, a Proof-of-Stake (PoS) blockchain that runs with the network’s digital token, ATOM, is where every new blockchain created is stored.

Bottom line

Despite the frequent launch of new DeFi coins, we believe them to be the most worthwhile investment. So you can pick one of the fascinating DeFi Cryptos described above as the year comes to an end. But, before investing, always DYOR!

Happy Trading!

Frequently Asked Questions

Is Cryptocurrency Safe To Invest In?

Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.

What Is The Meaning Of Crypto?

A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

How Safe Are Cryptocurrencies?

Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.

How To Invest In Cryptocurrency In India?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.

What Are The Best Cryptocurrencies To Invest In?

The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.

Is Cryptocurrency Legal In India?

In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India

What Is Virtual Currency?

Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.

Are Cryptocurrencies A Good Investment?

Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.

Is Mining Cryptocurrency Legal?

Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
Participate in the Indian Crypto Movement. Share:

Leave a Reply

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.