If you notice, around the end of 2020 a lot of news was reported associated with DeFi tokens. For example, AAVE is getting stronger and SUSHI is faster than Bitcoin (BTC) and Ethereum (ETH).
Recap what DeFi: Is a smart contract operating on the Ethereum blockchain. This way you can earn interest, get loans, trade assets and more without relying on third parties
So, what is important about DeFi tokens?
- DeFi tokens are a new evolution in the crypto financial sector because with the existence of these tokens you can borrow or lend in a peer-to-peer network or take out insurance directly without involving a bank.
- DeFi tokens not only aim to set new standards in terms of transparency and access but also want to reduce the cost of financial services and ensure a fast transaction process with automation features.
- With a decentralized platform, tokens realize what is impossible. For example, making investment and trade opportunities accessible to individuals who have not yet entered this community with great potential.
- Most DeFi projects are arguably still budding and that proves this sector is growing. However, a handful of big players have begun to pay attention, perhaps driven by speculation and of course projects that can last for a long time, will bring in more players in this industry.
- Probably investing in Ethereum (ETH) currency is safe from any risk and more attractive than investing in DeFi tokens. But you know, given that almost all DeFi tokens operating on the Ethereum blockchain will indirectly lead to an increase in ETH prices.
Perhaps when this article was published, some of you had already invested in DeFi tokens. But, it is not too late for us to remind DeFi token investment can be said to be a high risk investment.
