What Is DeFi
In todays blog I want to look at a big and important part of cryptocurrencies. If you been in crypto then you probably have heard of this word be thrown around. Most don't explain what it is when they use this word which when I first got into cryptocurrency had me confused. That's why I'm here to clear up in todays blog. We will go over exactly what DeFi is and why its so important in the crypto world and even in the finance world as well. I will also go over some good DeFi exchanges sometime in the future as well. Let now get into the rest of the blog post.
What exactly Is DeFi
What DeFi stands for is decentralized finance. What this means is it's finances that isn't centralized like typical financial institutions like banks for an example. What makes something centralized and decentralized is based on who answers to who. What makes something centralized is based on who or what has to report to a higher authority or to a third party. However what makes something decentralized is that they don't have to report to another authority or party. Both have their pros and cons however DeFi can offer a lot more. Which is what we're going to look into in our next topic of discussion.
Benfits of DeFi
There are all kinds of benefits of DeFI especially when it comes to cryptocurrency. One of the main benefits of DeFI is it's not kyc. So they don't have to ask you about your personal information like address or social security number. Another big benefit of DeFi is that it makes getting financial help easier for everyone. Especially those in countries where they have failing economies and can't get financial aid from banks like loans or in times when they cant withdraw money from the banks. Another great benefit of DeFi is DeFi exchanges and cryptos. Which leads us to our next topic of discussion.
Why DeFi is important to crypto
As I said in the beginning of the blog DeFI is very important part of cryptocurrency. Especially when it comes to cryptocurrency exchanges and whys that? Well it's because these exchanges provide a lot of benefits to its users. Such as being able to trade without kyc which is a big pro. But another is that DeFi exchanges have more cryptos then the centralized exchanges. Another is they offer more financial services then the centralized ones. Such as staking services or providing liquidly which is great for earning more revenue off of your cryptos. On top of the exchanges another great benefit are the cryptocurrencies. Defi cryptos like polygon and aave provide lots of value from their utility. All the more reason DeFi is really important to the crypto world.
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