As crypto investors gain knowledge and experience, there has been an increased interest in decentralized finance (DeFi) investments. In 2021, DeFi has become the hottest trend in crypto, helping investors to not only diversify their portfolios and hedge against potential losses, but also earn higher returns with added liquidity. DeFi investments offer investors a variety of unique benefits, such as improved liquidity and greater transparency.

As we move into 2023, the advantages of DeFi investments will become even more pronounced. These investments give investors access to traditionally closed off financial markets, such as hedge funds and syndicates, and this access can provide them with exposure to a broader range of assets than is available through traditional investments. DeFi investment strategies also grant investors with more control and transparency regarding their investments, as they can monitor each smart contract and decentralized application in real time.

For those interested in DeFi investments, the most promising options are those that offer both increased liquidity and higher returns. Many of these DeFi projects work to support everyday use cases, such as payments, lending, and borrowing. Different strategies such as yield farming and liquidity mining also offer high returns that could potentially outpace the returns from conventional investments.

The biggest advantage of DeFi investments is that the infrastructure is completely open and transparent. Investors can authenticate the protocol’s automation as well as the asset-backed collateral that supports each investment. This allows them to gain a better understanding of the risks and rewards associated with each DeFi project they are considering. With the rise of open finance, investors can also take advantage of automated investment strategies to reduce transaction costs and maximize potential returns.

As DeFi continues to build upon its explosive growth of 2021, 2023 will bring with it even more opportunities for investors to gain exposure to this quickly expanding asset class. With so many potential advantages and higher returns, it is clear that DeFi investments should be a top consideration for any crypto-investor in 2023.