Can’t invest in the US stocks you’re bullish on? DeFi could help
Diversification of investment has been an age-old advice. Investing money in stocks, commodities, Futures, Bonds, etc., all have been viable options. However, individuals don’t want to stop at the options in front of them. They want to reach for the options available beyond the borders of their homeland. But politics and economic regulations act as a roadblock for investors willing to invest in stocks of other countries. That is where DeFi comes to the rescue.
Diversification of investment has been an age-old advice. Investing money in stocks, commodities, Futures, Bonds, etc., all have been viable options. However, individuals don’t want to stop at the options in front of them. They want to reach for the options available beyond the borders of their homeland. But politics and economic regulations act as a roadblock for investors willing to invest in stocks of other countries. That is where DeFi comes to the rescue.
Investing in US Stocks Is Not That Easy
The United States of America is home to some of the biggest corporations in the world. Companies like Disney, Tesla, Amazon, Netflix, Facebook (Meta), etc., are listed on the native stock exchanges. But these stocks cannot be accessed by some investors.
Geographical restrictions are one issue, but investors and traders living in developing countries also have no direct way to invest in US-based stocks.
This changes with DeFiChain as the Decentralized Finance (DeFi) platform has provided the option of doing so to people using the capabilities of blockchain.
DeFiChain Makes Investing in US Stocks Easy
Built on the Bitcoin blockchain DeFiChain uses an innovative method of providing access to US stocks by listing dTokens that track the price of the underlying stock without collateralizing it. This way, it helps traders and investors gain price exposure to their favorite assets from anywhere in the world.
The rapidly growing platform has an expansive list of assets on the platform, stretching further as it adds community-voted tokens every four weeks. Recently four new tokens $dDIS - Walt Disney Co, $dMCHI - iShares MSCI China ETF, $dMSTR - MicroStrategy Incorporated, and $dINTC - Intel Corporation were added for DeFiChain users.
Furthermore, the investment is independent of your wallet size. For example, if you can’t afford to buy a TSLA stock, you can buy as little as 1/10 of dTSLA tokens or even smaller fractions because the dTokens can be fractionalized.
This opens the door to not only a diversified portfolio but also to a cost-efficient one. Now talking about cost, DeFi is frequently criticized for its high gas fees and transaction costs because most of them are based on Ethereum.
Even at the moment, the cost of making a simple transaction on Ethereum exceeds $1.41, and an ERC-20 token transfer costs over $4.35.
DeFiChain solves this issue by keeping the trading fees significantly low. Plus, it also offers the benefits of boosting the yield with liquidity mining by using the stock a user has instead of just holding it.
Additionally, recently after undergoing the much anticipated Fort Canning Road hard fork, the platform has enabled the option to arbitrage tokens giving a taste of the Future and Options Trading service that is set to arrive later this year.
Thus with DeFiChain, not only can you invest in US-based stocks but also do so much more than traditional DeFi platforms offer.
Image source: Shutterstock
Tags
Latest
