Decentralized finance (DeFi) is a category of blockchain-based protocols that attempt to provide open access to various financial services as opposed to the traditional banking system. Most of these protocols are built on the permissionless blockchain network Ethereum.
As of April 2021, total value locked within DeFi smart contracts was more than $50 billion.
An area in which DeFi applications have grown is cryptocurrency trading on decentralized exchanges (DEX). There is no need to depend on a trusted central authority because DEX are peer-to-peer platforms.
The types of activities enabled by the DeFi applications are:
- Lending and borrowing cryptocurrencies to earn interest
- Derivatives trading: creating and exchanging derivatives of real-world assets like currency or precious metals
- Spot trading
- Margin trading
- Saving
- Insurance
Did you know that DeFi applications are sometimes called “Lego money” because they can be stacked to make the most of returns?
Table of Contents
What are DeFi trading platforms?
DeFi trading platforms allow users to keep track of several cryptocurrency exchanges from a single terminal. Traders can simultaneously keep track of their portfolios and trade on multiple markets across the world.
Professional traders use some of the best crypto exchanges that require them to open an account and verify their ID.
Beginners who want to make occasional trades can use platforms that do not require the opening of an account.
A good DeFi trading platform should have the following features:
- User-friendliness
- Security
- Accessibility
- Reasonable trading fees
- Profitability
Thus, a DeFi trading platform helps traders manage their portfolios, tracks market fluctuations, and makes trades 24/7.
User-Friendly DeFi Trading Platforms
Several DeFi trading platforms are available such as eToro (read this eToro review to learn more) and Coinbase Pro, but not all of them are simple enough for beginner traders.
Let’s look at 3 DeFi trading platforms that beginners can use to learn the ropes:
- Cryptohopper
Source: Cryptohopper
Cryptohopper is a DeFi trading terminal that allows users to employ an automated trading bot. It has the most complete set of tools in the crypto trading space, which includes:
- Copy trading
- Simulated trading
- Automatic trading
- Trailing stop-loss
- Shorting
- Strategy designer
The copy trading tool makes the platform easy for beginners to use because they can purchase insights, trading strategies, signals, and templates from experienced traders to make their trades.
Cryptohopper has a marketplace where users can buy automated bot algorithms programmed by experienced traders.
- Its user-friendly interface and easy-to-set-up dashboard help beginners with no online trading experience to dive in and get started.
- It has a drag and drop functionality to enable users to create automated strategies with their specific needs.
- Traders do not need to know coding or programming to design trading strategies.
Cryptohopper is also suitable for seasoned traders who can build automated trading bots to match their specific requirements.
The platform is currently compatible with eight top cryptocurrency exchanges, including Coinbase Pro, Binance, KuCoin, Bitfinex, and Bittrex. This allows automated bots to have enough liquidity to achieve their requirements round the clock.
Cryptohopper has four pricing plans, starting with the free Pioneer plan and followed by Explorer, Adventurer, and Hero plans.
- Kattana
Source: ICO Drops
Kattana is a professional DeFi trading platform for blockchain assets that allows traders to refine their trading strategies to a pro-level.
It aggregates a whole suite of reliable and intuitive trading tools on one platform to help traders perform multiple functions, such as performing market analysis and measuring trade performance.
- Users can trade in real-time on the Kattana terminal using more than 40 DEXs with advanced order types (limit orders) and scalable, high-quality charts.
- They can also trade from within the platform without looking for contract addresses or other DEXs from which assets are traded.
Kattana is great for beginners because it has a clean, intuitive, and straightforward user interface and offers the best user experience.
- Users can start with the free plan to familiarize themselves with the platform before moving on to the paid plans.
The platform also offers an aggregated cryptocurrency news feature where users can be informed about specific and exclusive news related to their projects and assets.
In addition, Kattana calculates the P&L of all transactions and generates a profitability chart. It structures transactions as trade. It simplifies trading for users by analyzing all ERC20 wallet addresses.
Kattana aims to be a one-stop shop for DeFi trading by offering a comprehensive crypto trading terminal.
- It is a paid platform but offers limited free access to some of its functionalities, such as access to two charts per tab, the ability to trade on DEX, and analysis of a limited number of ERC20 wallet addresses per day.
- Zignaly
Source: Zignaly
Zignaly is an easy-to-use DeFi trading platform that employs cryptocurrency trading bots. It is an automated platform that can make cryptocurrency trades without needing much input from users.
Trading on Zignaly is done by using external signal providers, of which it currently supports 21. Signal providers are services that send trade alerts for good cryptocurrency opportunities.
- It is fairly easy to use the platform and users can begin to generate an income without spending too much time on it.
- Interestingly, the platform offers explanations for all its features and tools to help beginners.
It is cloud-based so anyone with a computer and Internet access can use Zignaly to start trading. It does not require installation or server space from users.
Users can also integrate their TradingView accounts into the platform to use their preferred indicators.
Zignaly supports trailing stop-losses that allow users to make safe trades. It follows the price of the altcoin and sells only after the market drops.
Conclusion
The DeFi sector in cryptocurrency has been rapidly growing and may emerge as a viable alternative to traditional centralized financial services.
However, beginners should be careful when selecting a DeFi application to invest in because they are not without risks. They should look for things like transparency, security, and affordable transaction fees when choosing a trading platform.
In the future, the DeFi ecosystem could see the development of new decentralized financial products and services that will go beyond the offerings of traditional institutions.
Guest Post by Virginia Andrus is an independent Digital Marketing Consultant with 6+ years of marketing experience. Virginia is a chef by heart. In her free time, she is either writing marketing copies for brands and agencies or experimenting new recipes at her home. Connect with her on Twitter: @andrus_virginia.
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