DeFi platforms let you access financial services operating on public blockchains. This guide compares the best DeFi platforms in 2023.
This page helps you choose the best DeFi platform. We compare the top platforms around and explore what you can do on each one. Read on to learn more and find out what the best DeFi platforms for 2023 are.
Best decentralised finance platforms overall for 2023
- Oanda
- Binance: Best crypto platform for trading altcoins
- Coinbase: Best secure trading platform for all types of trader
- KuCoin: Best social trading altcoin exchange
- Bitstamp: Best for professionals & trading with APIs
What are the best DeFi platforms?
The table below shows the best DeFi platforms around. They’ve all been selected by our crypto experts and you can get started in just a few minutes. Click on any of the links to register right now or keep scrolling to find out more about each one.
What are DeFi platforms?
DeFi platforms, also called decentralised finance platforms let you access financial services operating on public blockchains. DeFi allows you to do most things that you can do with a traditional bank – earn, borrow, and lend among many others. When using DeFi all of these functions are much more efficient, faster, and do not require interference from a centralised authority.
DeFi platforms facilitate financial transactions, allowing anyone to participate. Platforms are offered by exchanges or brokers who usually operate other cryptocurrency services. Each platform ranges in the types of functions, services, and features it has available
How do DeFi platforms work?
DeFi platforms are pieces of software that allows users to make use of a wide range of decentralised financial services and applications. These platforms usually belong to an exchange or broker and are similar to many traditional trading platforms. It is helpful to view a DeFi platform as the ‘tool’ that connects you to the decentralised finance space.
DeFi platforms facilitate a wide range of applications including earning interest, borrowing, lending, and trading among others. Some platforms will require you to use a wallet to make transactions while others accept fiat currency.
How should I choose a DeFi platform?
Choosing a DeFi platform is much like choosing any other type of financial platform and there is a range of factors to consider. Below you will find the key features to look out for when choosing a DeFi platform:
- Fees. All DeFi platforms charge fees for various services and sometimes the charges can quickly add up. Before selecting a platform you should check the fee schedule for a specific service you require.
- Services. Not all platforms offer the same services – some may focus only on lending while others will incorporate a wide range of decentralised services. Before using a platform you should make sure that it offers the services you’re after.
- Choice of crypto available. If you want to use a DeFi platform to trade then you’ll need to check what coins are available. Some brokers or exchanges are limited in what is available so it’s a good idea to find out before you register.
- Payment methods. When using some DeFi platforms you can connect your wallet and deposit any crypto you hold. Others accept fiat deposits but may charge a fee. The payments page for any platform will give you the answers you require.
- Security. Hacks are a worry for many users and platform operators and while they are not a frequent occurrence as they used to be, malicious attacks can still happen. It’s a good idea to go with a platform that takes security seriously.
- Supported wallets. Some DeFi platforms, especially those operating as a DEX, require you to connect a wallet before using one. Not all platforms accept the same wallets so you should check before hand.
Should I use a DeFi platform?
It depends on your level of experience and what you want out of your crypto activities. If you want to generate yield or interest from your idle assets then using a DeFi platform is your only choice. On the other hand if you just want to buy Bitcoin, you don’t necessarily need to use one. Before you start you should have a clear idea and understanding of your requirements.
What are the risks of using a DeFi platform?
Using a DeFi platform comes with a lot of benefits but there are a few risks you need to take into account too. Here’s a few of the benefits and risks of using a DeFi platform:
Benefits
- Access to decentralised financial services
- You can start with very little initial deposit
- Ability to earn interest and take loans at good interest rates
- Buy, sell, and trade lots of crypto coins
Risks
- DeFi is fairly new industry and changes very fast
- You may require advanced knowledge to make use of some DeFi applications
What are the fees for using a DeFi platform?
There is no one size fits all when it comes to fees for using a DeFi platform. Each platform will have its own charges and will depend on the service you’re using. For example you may have a transaction fee for trading, depositing, and withdrawing funds. There will also be fees involved for staking, yield farming, and similar services.
Methodology: How did we choose the best DeFi platform?
We followed a strict process when evaluating each DeFi platform listed on this page. Our cryptocurrency experts searched the market and selected the best platforms based on a range of features. This included registering an account, depositing funds, making transactions, exploring other features and tools available.
When comparing each platform we used a combination of our own research as well as online reviews. Our rankings have not been influenced by any platform. However on occasion we may make an affiliate commission if you click on a link and use a service. You Can learn more about our review process here.
What is the best DeFi platforms?
Coinbase is the best DeFi platform for beginners so if you’re new to decentralised finance you should start there. The easiest platform to use is eToro and if you’re an experienced user then OKX is a top option.
Is DeFi risky?
It is in its infancy and decentralised finance is always changing so there is some risk involved. Most notably it is possible the platform you use could stop operating and withdrawing you funds could become difficult. It is best to use a DeFi platform that has been around for a while and has a robust userbase and foothold in the market. The platforms we’ve discussed on this page are good options.
Do I need to use a wallet?
Yes in some circumstances you will need to use a wallet. In order to interact with DeFi products you may find that a wallet is the most secure and accessible way of doing so. However you can still use some DeFi services without a wallet.
What is the best DeFi trading bot?
There are some DeFi trading robots that will buy and sell automatically for you. If you want to use one it is recommended you check reviews beforehand as some are better than others.
Original source: https://invezz.com/cryptocurrency/defi/platforms/
