DeFi is so important to understand for numerous reasons. In the crypto space, this has been a hot topic over the past few years.
This article will outline what DeFi is, why it’s important, and the difference between CEX and DEX.
What is Defi?
According to Investopedia, Defi is an “emerging financial technology based on secure distributed ledgers similar to those used by cryptocurrencies.” They go on to explain that it removes the power from the banks and others who are the gatekeepers to finance.
Why is Defi Important?
DeFi is important for many reasons. First, it eliminates the fees that many banks have for simply utilizing their services. And you can store all your assets in a digital wallet rather than having someone else hold them for you.
Additionally, you can transfer funds in a matter of minutes to anyone with an internet connection. Chris also mentions they have exchanges, access to NFT marketplaces, and high-yield interest aggregators.Defi- what is it? Why should you care? Learn what is it and how it can be applied in your life here: Click To Tweet
What is the Difference Between CEX and DEX?
DEX is a decentralized exchange, and CEX is a centralized exchange. Chris explains that DEX is the end goal for decentralized finance. DEX cannot be taken down by a person or group of people compared to CEX.
This article has outlined what Decentralized finance is, why it’s important, and the difference between CEX and DEX.
Deep dive into this topic with this video by Chris.
Rose is the lead editor for crypto current and she has a bachelor’s degree in business with a major in Marketing. Rose discovered her love for this field while traveling to 5 different countries across the globe for volunteer work. During her travels, she learned the importance of freedom and how cryptocurrency can offer a ton of opportunities for freedom. When she is not working you can catch her binge-watching tv, playing her Nintendo switch, or taking Korean lessons!
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