What are DeFi tickets and why should you keep an eye on them?

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After cryptocurrencies, DeFi tokens (decentralized finance tokens) have been disrupting the finance sector for the whole year 2020. While many projects are still in a nascent phase, DeFi tokens have been causing a frenzy on the crypto markets which reminds one of the prosperity. of Bitcoin, Ethereum and others back in 2017.

So what are DeFi tickets? They are decentralized financial applications that run on blockchairs that reflect concepts successfully used in traditional banking and finance. DeFi tickets are shaking things up in the markets. The key idea is to recreate financial services in a decentralized way, without the need for a third party, such as a bank, between them.

Instead, you put your trust in computer code, or more precisely, smart contracts that run on, mainly, the Ethereum blockchain. This allows you to earn interest, get loans, trade (synthetic) assets and more, without relying on any third party. Thanks to DeFi, crypto is on its way to the next level. Sounds interesting? Then let’s get started!

While the hype surrounding DeFi tokens has meant some excellent products, it is important to remember that DeFi tokens are considered high risk investments and prices are subject to very high volatility, as traders have seen some over the past few weeks. Also, in case you missed it: Bitpanda recently launched six of the most popular DeFi tokens in the crypto arena, and another six shortly thereafter.

Five reasons why you should keep an eye on DeFi tickets

As you can see, DeFi’s season is on and going strong. Here are some great reasons why you should keep an eye on devolved funding projects and tickets:

1. DeFi Tickets are the logical next step in disrupting funding

For example, DeFi tokens allow people to borrow and borrow within a partner-to-peer network or take out insurance directly, without the need for intermediaries such as banks. That is, decentralized finance tokens provide the same or similar services to consumers and ticket holders offered by the traditional financial sector. In a way, they are the next evolutionary step in the crypto arena – similar to what Netflix did to traditional cable TV.

2. DeFi tokens realize the potential of blockchain

By creating a parallel system with traditional finance, DeFi tokens not only aim to establish new standards of transparency and access but are guaranteed to significantly reduce the costs of financial services and ensure transactions are processed quickly thanks to automation . DeFi tokens are a very interesting use case of the concepts introduced by projects like Ethereum, which allow decentralized applications to run on their network infrastructure.

3. DeFi tickets make finance accessible

Thanks to decentralized platforms, DeFi tokens are another milestone in making investment and trade opportunities accessible to individuals who may not have been able to participate up to this point, pioneering economic paradigm change.

A wide range of use cases, from savings in interest accounts, borrowing and borrowing, looking at networks and derivatives, to insurance, gaming and synthetic assets, offer great potential for those interested in investing in the long-term today’s most active sector only. in blockchain.

4. DeFi tickets are at the start only

If you are a crypto enthusiast, there is little way you can ignore developments in decentralized finance. Whether we’re talking about the most popular DeFi token UNI, Uniswap Protocol governance sign, Synthetix Token SNX Network, one of the largest DeFi projects to date or Maker MKR, one of the oldest decentralized governance protocols, these are all great assets to get started and diversify your crypto portfolio.

Indeed, most DeFi projects are still in their early stages. Part of the hype that sparked traders’ interest may have been caused by short-term speculation. While the best projects are bound to stay and evolve further, we also expect to see more big players in the industry jump on this.

5. DeFi tokens bring added value to Ethereum

Finally, if you consider yourself a more risk-averse investor and want to wait until the wheat separates from the rust, investing in Ethereum (ETH) it can be a more attractive option for you than investing in the actual DeFi tokens.

Since almost all DeFi tokens run on smart contracts on the Ethereum blockchain, many analysts are predicting significant potential for corresponding increases in the price of ETH. Some even think that DeFi’s coins are the last factor missing to skip the flipping scale, the battle between Bitcoin and Ethereum for the top spot in market capitalization, in favor of Ethereum in the medium to long term. While Ethereum would still need a significant scale to reach that stage, DeFi has brought some of the magnifying glass back into this discussion.

What else should you know

Currently all DeFi tokens available on Bitpanda are “non-right” tickets, listed on Bitpanda as “trade only”. This means that if you hold DeFi tickets on Bitpanda, you cannot exercise the rights associated with holding them at this time. To exercise all of the rights associated with owning DeFi tickets, such as voting, staking or other rights, the ticket would need to be transferred elsewhere.

Whatever, DeFi tokens are on their way to revolutionizing the crypto scene, so make sure you don’t miss out. Bitpanda already offers an attractive range of DeFi tokens to invest. Are you ready to start investing?

RISK WARNING: The information contained in this article is for informational purposes only and is not investment advice in any form. Please note that cryptocurrency trading may involve a significant level of risk and is not suitable for inexperienced traders. As DeFi tickets are relatively new, they carry a higher risk than usual, and are therefore likely to be subject to high price volatility. For more information on the risk associated with cryptocurrency, please also refer to our Terms and Conditions (see 13. Risks).

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