What is Decentralized Finance (DeFi)? Explained
Decentralized Finance (DeFi) is financial activities that exclude involvement of centralized banks,
government, or other financial institutions. Meaning decentralized finance is the process allowing all Cryptocurrency investor to become their own bank.no need of authority to execute transaction.
How Decentralized Finance [DEFI] Works?
Decentralized finance works like open banks, meaning it a protocol or process that implemented for the main goal of allowing all user to operate freely, without need of authority or approval, become your own banks,elimation of fees that banks and financial institution apply to user every time their doing transactions.
What is the main purpose decentralized finance? Defi
The main purpose of decentralized finance [DEFI] is the ability of cryptocurrency investor to become their own banks and working 24/7 no need of approval or paying fees, also the speed of transactions world wild.
What is the best DEFi Cryptocurrency
According to firstcryptoetf research and well-known Cryptocurrency website called coinmarketcap, Decentralized finance project market cap averaging 47,52 billion dollar and the best top 5 Defi project for 2022 is:
Dai
Dai is Ethereum based stable coin that manage by the maker protocol and the market DAO
Uniswap
Uniswap is decentralized protocol with the main goal of facilitating automatic financial transaction
Avalanche AVAX
avalanche is layer one blockchain with the main goal of decentralized financial or block chain.
Wrapped Bitcoin [WBTC]
wrapped Bitcoin is tokenized version of bitcoin that operate in Ethereum blockchain. For the main purpose of decentralizing transaction by the way WBTC it ER-20 compliant.
Chain-link
Chain link is the Kool kids in block, meaning chain link can integrate easily with any defi project, you may ask what that is means, well it simply means chain link is a block chain that abstract layer that enables universal connect like smart contracts trough decentralized oracle network. meaning it allow blockchain to interact securely external data.
How to invest in decentralized finance [Defi]
the best way for cryptocurrency investor to get in decentralized finance is ;
- having a cryptocurrency wallet
- purchase crypto coins
- get involved with protocols or asset
- last but not least, manage or track your investment
Advantage of Decentralized finance
The main advantage of decentralized finance is to eliminate fees and give power back to cryptocurrency investor meaning, there is no need of banks or authority for approval.
ability for cryptocurrency investor to choose how and when they want to secure the investment. with highest level of security.
Disadvantage of Decentralized finance
the number one disadvantage of decentralized finance according to our research lack of regulation meaning, decentralized finance can be one of the ways that most drug dealer or money laundry can use to easily clean their money.
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