The DeFi market has exploded in popularity over the last few years. The number of projects and platforms has increased dramatically, and so too has their quality.

However, with so many options to choose from, it can be difficult to navigate the sea of DeFi crypto projects and find the one that fits your needs best. In this article, we take a look at the most popular DeFi coins in 2022, how to buy them, and some key factors to consider.

But before we dive in, let's have a brief look at what DeFi is.

DeFi stands for decentralized finance, and it refers to a set of protocols and applications that allow people to make payments and transfer money without relying on a centralized third party like a bank. Instead, they use "smart contracts" — computer programs that run on top of blockchains like Ethereum or EOS — to enforce the terms of their agreements.

So what are DeFi coins?

DeFi coins are cryptocurrencies that are built on top of these smart contract platforms. They have native value because they're used as currency, but they also have some features that differentiate them from other cryptocurrencies. For example, some DeFi coins can be staked to earn interest just like traditional savings accounts do.

As the blockchain technology is developing rapidly, many people are talking about investing in tokens, but it is not easy to find out which ones are worth investing in.

To help you make a good investment decision, here are some important metrics to consider:

The utility factor of a token determines how useful it is within its ecosystem. For instance, if you invest in a token that has no real-world application, then this might not be a good idea since its value will remain speculative in nature. However, if you invest in one that has been widely adopted by merchants across the globe as payment options for example, then this could be considered an excellent long-term investment opportunity.

Liquidity refers to how easily you can buy or sell your cryptocurrency without affecting its price. You should check if there are enough buyers and sellers at any given time so that you can sell your coins whenever you like without affecting their market price.

The market capitalization is the current value of all tokens in circulation. If the currency is not yet available to trade on an exchange, then you need to estimate its value based on the total amount raised in its ICO. A high market capitalization indicates that the currency has been around for a long time and has gained trust among its users.

Trading volume refers to how many times a given asset has been transacted over a certain period. High trading volumes indicate that there's a lot of interest in that particular asset, which could mean good things for its future price growth potential.

Cryptocurrencies tend to be very volatile assets, meaning that their prices can fluctuate dramatically from day to day and even hour to hour depending on news events and other factors out of your control. This volatility can be attractive if you believe a particular cryptocurrency will grow in value over time, but it also means that the potential gains can be offset by losses if you make the wrong call about when to sell your coins or tokens.

The DeFi ecosystem is still very young and there’s no clear leader yet. However, some DeFi crypto projects have already started attracting a lot of interest from users and investors alike.

Here are some of the most popular DeFi coins in 2022.

Dai is an Ethereum-based stablecoin. It was developed through the Maker Platform and MakerDAO, a decentralized organization that runs on the Ethereum blockchain. DAI has several advantages over other stablecoins, including greater flexibility through multi-collateralization and integration with hundreds of decentralized applications and Decentralized Finance (DeFi) projects.

One of the biggest challenges that dapps face is accessing data from the real world. Chainlink offers a decentralized approach to data and services, with an emphasis on oracles. It provides smart contracts with access to external data and various APIs, enabling them to interact with real-world entities in a secure, scalable, and cost-effective manner. This allows users to have greater control over their data while still allowing them access to powerful tools like smart contracts.

The Uniswap protocol was built to be an open-source decentralized exchange that allows users to trade various DeFi tokens, as well as Liquidity Provider tokens. It was built to be an on-chain automated market maker that lets users create their own pools or provide liquidity in existing pools.

Avalanche is a platform for creating decentralized finance applications, including decentralized exchanges and tokenized assets. Avalanche uses the Ethereum virtual machine and supports programmability at the network level to offer sub-second transaction confirmations, using a proof-of-stake consensus protocol.

AAVE is a decentralized lending and borrowing protocol that uses smart contracts to enable instant loans. The loan-taker gives digital assets as collateral, and the lender earns interest by depositing crypto into a liquidity pool. The AAVE token is based on the ERC20 standard and is designed to be deflationary at its core.

There are several ways to buy DeFi crypto, so it really comes down to what you want, where you're located, and how much money you have.

The most common way to buy DeFi coins is from an exchange platform like Coinbase, Binance, or Kraken. You can also get them through a crypto wallet service like MetaMask or Trust Wallet (which is free).

The specific steps to take when buying DeFi coins will depend on the option you choose. However, if you're using a cryptocurrency exchange, here's an overview:

The first step is to create an account: You can choose a specific blockchain or use an exchange that offers multiple blockchains. These exchanges will let you purchase DeFi coins with ETH, BTC, and other crypto assets.

Deposit funds into your trading wallet: The amount of funds you deposit depends on how much DeFi coin you want to purchase and how much leverage you want to use (if any).

Search for DeFi coins on the exchange's trading platform and place an order for purchase: The price at which DeFi coins are being sold or purchased will vary based on supply and demand factors in addition to other market conditions.

Exodus offers a multi-currency DeFi crypto wallet that provides a simple graphical user interface. This means that you can easily monitor the value of your assets and the status of the blockchain networks they run on.

Our team offers services to help our customers earn passive crypto income through the crypto apps, as well as providing Hot Wallet (desktop or mobile), and Cold Wallet (Trezor Hardware Wallet) access.

Contact us today for more information.