Coinfomania: Where blockchain and cryptos live.

Why Should We Start Using DeFi For Trading?

After the Decentralized Finance Meetup from May 2018, DeFi became one of the most popular subjects in the current financial economy. A few years later, in September 2020, DeFi had no less than $10 billion in total value locked.

Why were people so hyped about it?

The answer is pretty obvious since DeFi offers the majority of options available on centralized banks like loans or exchanges – possible due to the smart contract technology.

And when it comes to trading, DeFi is one of the best options out there, which is not surprising considering what it offers.

So why is DeFi trading so special?

First of all, DeFi trading is entirely decentralized, and every data is encrypted – which leads to autonomy and anonymity. You don’t depend on banks anymore, so you are the only one who manages your assets.

Another thing is that trading on DeFi means trading with a robot. The trading platform determines the price of the cryptocurrencies based on liquidities and the ratio between coins and tokens.

That’s actually a great relief.

Because dealing with an actual trader can be a hassle, especially when your partner doesn’t agree with you on price, or worse, when they turn out to be a scammer. That usually leads to many calls to support, which take time, and they’re not always a success.

And if this is not enough, note that DeFi trading is permissionless. You don’t have to wait for approval to join. Everybody can become a DeFi trader – all they need is some crypto and the desire to increase their income.

How to choose a DeFi trading platform?

Before jumping on the hype, you need to do your research – because nothing good comes when we make a decision blindfolded.

And to make it faster and easier, there are some tips you could take into consideration:

  1. Look for how many trading pairs has the platform

The cryptocurrency market is changing day after day, being a lot more volatile than fiat. This is why a good trader is the one who can adapt to changes. A token that had a low-value yesterday could skyrocket overnight, and vice versa. Therefore, a comprehensive trading platform like VTrader, for example, is a better option.

  1. Make sure they have fiat to crypto exchange pairs

Even if the crypto market cap is rising, mainly due to the increasing value of Bitcoin and the recent alt season, it is fairly small compared to fiat. Therefore, we can’t convert to 100% crypto yet. We still have to buy Bitcoin with euro from time to time for better results.

  1. Check the platform’s authenticity

There are many scams out there, and you sure don’t want to be fooled by them. Take a look at how clearly the information is presented, how detailed the guides are, and how easy it is to find info about the developing company.

Conclusion

Maybe Defi isn’t at the level we’d like yet, but it’s going that way. With so many big crypto investors lately, this field is gaining more and more popularity. From what we can see, a world where we can give up on fiat is closer than people think.

With that being said, don’t miss the chance and join DeFi trading!


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