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How to Buy DeFi? Complete Guide!

You can buy DeFi tokens directly on cryptocurrency exchanges such as Coinbase, Kraken, Binance, eToro, and many more. Decentralized Finance DeFi is a relatively new phenomenon in the cryptocurrency market. 

Most of the decentralized platforms are created on Ethereum’s network. With the latest London update of Ethereum, DeFi projects have gained momentum. The application of these decentralized applications is most concentrated in decentralized lending (decentralized borrow and lend), decentralized exchanges (DEXs), and decentralized autonomous yield farming. 

The Defi token market has increased by more than 88-times from below US$1-billion to a peak of US$88-billion within a year since May 2020. Some of the most popular DeFi tokens are Aave (AAVE), Synthetics (SNX), yEarn Finance (YFI), Maker (MKR), Compound (COMP), Uniswap (UNI), Sushiswap (SUSHI), and many more governance tokens. 

With the mission of banking the unbanked, DeFi is the market that is future of the financial system. In fact, the goal of providing faster and cheaper alternative to Ethereum network, many alternatives have sprund up. Some of them include Polygon, Solana, Polkadot, Binance Smart Chain (BSC), and Tezos. 

If you want to invest in cryptocurrencies and want to see your investment skyrocket in the coming 5-to-10-years, invest in DeFi tokens. Now, let me walk you through the process of buying DeFi tokens.

How to Buy DeFi?

You can buy DeFi in two ways mainly:

  1. Buy DeFi Tokens
  2. Buy DeFi Composite Index

How to Buy DeFi Tokens?

You can buy DeFi coins through:

  • Fiat-to-Cryptocurrency Exchange

You can buy DeFi tokens from website platforms such as Coinbase, Kraken, Coinmama, Binance, and other mobile apps. Buy decentralized finance cryptos by using your country’s or your preferred fiat currency. You can make the transaction with the help of:

  • Debit cards
  • Credit Cards
  • Fund transfer from your bank account

You can buy and sell DeFi tokens against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges. 

Once you buy DeFi coins through a fiat-to-crypto exchange, you can do 3 more additional steps for depositing coins safely and also to earn money. These 4 additional steps are:

  1. Create Software Wallet to Withdraw Defi Tokens 

One of the easiest and quickest ways of storing cryptocurrencies is a software wallet. You can create a crypto software wallet in just minutes. To create such a wallet, you simply have to click on “Create New Wallet”. Once you create a new wallet (say, on Exodus), you’ll be required to remember or note a 12-word recovery phrase. This phrase is also called “12 words backup”, “seed phrase”, “recovery seed”, “mnemonic phrase”, or other names. 

When you’ve successfully created your software wallet, you can transfer your bought DeFi tokens from your fiat-to-crypto currency account (say, Coinbase, Coinmama, Kraken, Binance, etc.) to the wallet. The address of your wallet is usually a set of 30-to-40 alphanumeric characters. Your wallet address will generally look like this: “0bs8r94e5…13B412523”. For transferring money, you have to cut and paste your wallet address from your crypto exchange account to your software wallet. 

Always jot down the recovery phrase on paper and store it securely. It has been seen that most people lose their crypto simply because they have either lost or forgotten their recovery phrase. 

Some of the most popular software wallet options are Coinbase Wallet, Trust Wallet, MetaMask, and MyEtherWallet (MEW). Wallets can be single coin or multi-coin ones. Multi-coin wallets are recommended because they help in storing cryptocurrencies from different blockchains including Bitcoin and Ethereum (BTC & ETH), Cardano (ADA), Ripple (XRP), and many more. 

  1. Transfer DeFi Tokens from Crypto Exchange to your Software Wallet

To transfer cryptos from fiat-to-cryptocurrency exchange (say, Coinbase) to your software wallet (say, TrustWallet), you have to cut and paste your wallet address in the Recipient section. 

The amount of particular crypto (say, ETH) bought by you is shown in the crypto wallet of your exchange. You can transfer a particular amount of ETH (say, US$100 worth of ETH) from your exchange account to your software wallet. 

It is important to note that you must send Bitcoin to your Bitcoin wallet and Ethereum to your Ethereum wallet. If you send BTC to your ETH wallet address then you’ll lose your crypto forever. 

For withdrawing cryptos from an exchange, they charge a certain fee, which you have to pay. 

  1. Transfer Cryptos from your Cryptocurrency Software Wallet to Crypto Bank

There are many cryptocurrency banks that store your cryptos and in return provide you interest for the capital deposited. Some of the most popular ones are Compound, Nexo, BlockFI, and Celsius. If you are HODLing your DeFi tokens, instead of holding them idle, you can use your cryptos to earn interest. Transfer your bought DeFi tokens from your crypto wallet to these crypto banks to earn interest. 

How to Buy DeFi Composite Index?

Managing a portfolio of different DeFi tokens can become overwhelming. DeFi index tokens are making life easy for investors. These indices are managed 'baskets' of DeFi tokens that are rebalancing automatically by using smart contracts. 

One of the easiest ways of buying DeFi indexes is through Argent. You can track the DeFi protocol tokens on the exchange fast and easy. The calculation is done by using weighted averages of the price of DeFi tokens (on a real-time basis). They are denominated in USDT. At Binance Futures, you can find DeFi Composite Index. 

You can buy DeFi Composite Index by using:

  • Debit card or credit card on Binance Buy Crypto.
  • Bank account transfer. Fund your Binance crypto trading account by transferring fiat currency from your bank account. 

Once fiat money is deposited in your Binance account, spot trade can be done with the available DeFi pairs UNI, AAVE, LINK, YFI, CAKE, 1INCH, SXP, SUSHI, MKR, REN, and COMP. 

Invest in DeFi Now

The market capitalization of DeFi is around US$74.8 billion. When compared to the total market caps of the cryptocurrency market (more than US$1.4 trillion) and stock market (around US$90 trillion), this figure is not impressive at all.

Mark Cuban, a renowned American billionaire entrepreneur and crypto enthusiast,  believes that the Defi industry is relatively small currently. However, it has the potential of exploding in the coming 10-years. 

Alex Alexandrov, Founder of Velas and Coinpayments.net, believes that especially after the Layer-2 implementation of Ethereum, DeFi will start becoming mainstream. This is mainly because it will help in the emergence of real investment opportunities. 

To get the maximum return in the coming 5-to-10 years, you should start investing in DeFi now. Keep an eye on the market news, price statistics, block times, and others to time your trading of Defi systems and tokens for maximum profit. 

You can buy and sell DeFi tokens against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges. 

If you want to increase your investment explosively in the coming 10 years, buy DeFi coins now. 

Diversify your crypto portfolio by including other cryptocurrencies such as Bitcoin Ether ETH, Bitcoin Gold, Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain technology), NFTs (nonfungible tokens), and others. 

Also, invest in various types of stocks and options (through stocks trading and options trading at stock & options brokers) , mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or asset management firm for maximum return. 

Invest in NapBots: A Dynamic Cryptocurrency Index

Whether you are a professional or retail investor, you can expose your capital to a diversified portfolio of digital assets & crypto asset classes by simply investing in NapBots. It is a smart crypto index service that introduces multifarious features and passive portfolio management strategies for enabling cryptocurrency investors to streamline their trading experience in new ways. 

NapBots provides you various indices that include a basket of tokens with high market capitalization and are categorized by theme (such as Solana, NFT, DeFi, and others). This platform introduces an intuitive interface as well as advanced allocation tools for enabling new investors to create and manage advanced crypto indices easily.

The best part of NapBots is that it tracks and executes trades automatically on the basis of your pre-set choices of indexes. The platform is very affordable as it enables you to start trading as low as US$150 with a monthly service fee of just 2.5%, which is far below the current rate of other cryptocurrency index providers. Therefore, NapBots reduces the financial barriers and at the same time eliminates the need for human intervention and the consequent human error. 


Get started with crypto-asset investing by investing through napbots.com, a dynamic crypto index for expanding diversified exposure to bitcoin and leading crypto-assets at reduced financial barriers and no human error.