As the name suggests, DeFi is all about decentralized crypto finance operations. Well, this is not new in the crypto sector because blockchain operations are decentralized anyway. Blockchain transactions are written to a ledger that is distributed across many databases. When transactions are made and confirmed to the ledger, cryptography is used to ensure their validity, accuracy, and security. This involves numerous decentralized parties working together.

So, what is all this hype about DeFi (decentralized finance)? According to experts, this concept takes decentralization a step further by providing exchange, yield farming or staking, and lending without the need for an intermediary.

Successful DeFi (decentralized finance) thrives through a "public" consensus where all members of the community are involved in making decisions. That said, let us look at the benefits of joining such a community and investing your digital currency in the successful ones.

DeFi (Decentralized Finance) Is Transparent

DeFi (Decentralized Finance) Is Transparent

As mentioned, DeFi (decentralized finance) relies on everyone in the community to make decisions. Thus, transactions and other operations are visible to everyone because they are displayed to other users for verification. Furthermore, the activities of the blockchain are stored in numerous servers across many regions.

So, if you are looking for a transparent ecosystem to invest in, that is save or trade, try a reliable DeFi platform on the web. You can check out this site to have a look at a great platform you can try.

DeFi (Decentralized Finance) Guarantees Self-Custody

Even though the operations of DeFi (decentralized finance) are public and visible across many servers, users are allowed to keep custody of their digital assets in secure wallets with secure private keys. There is no way another participant will have access to your BTC, ETH, or any other crypto unless you send it to their address through a transaction.

This is unlike a CeFi (centralized finance) platform such as third-party exchanges, which keep custody of assets in the platform and make all the decisions by themselves.

DeFi (Decentralized Finance) Is Highly Programmable

One of the pillars of DeFi (decentralized finance) is the availability of smart contracts. Programmers and developers are working day and night to develop unique products referred to as protocols to provide further crypto solutions.

This is possible because the DeFi blockchains are highly programmable. This also makes it possible to automate operations and eliminate the need for an intermediary. If you are enjoying automated crypto operations on these platforms, then you know why it is possible.

DeFi (Decentralized Finance) Offers Earning Opportunities

DeFi (Decentralized Finance) Offers Earning Opportunities

If you are a crypto investor, DeFi (decentralized finance) platforms have got you covered with numerous earning opportunities. They help you grow your investment within no time. Here are some of the opportunities you can grab.

  • Trading – You can buy and sell BTC, altcoins, and stable coins on a DeFi platform and make a profit in between.
  • Lending – Decentralized finance platforms allow investors to lend their crypto to individuals and the platform to earn interest.
  • Yield farming, staking, and liquidity provision – This involve saving on DeFi platforms, supporting the operations of the platform with your finances, or approving transactions. In return for this support, you will get rewards such as interest, a share of the platform income, or airdrop deals.


From the above insights, DeFi (decentralized finance) has all the benefits to convince you to invest. With these insights, it is easy to make informed decisions. But we recommend that you continue to research to understand more about how DeFi works for the best efficiency.

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Arina Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at OnlineNewsBuzz.

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