Traditional Finance vs Decentralized Finance (DeFi)

The most obvious distinction between DeFi and traditional financing is accessibility. Anyone with some cryptocurrency can build a wallet and begin using DeFi services.

There is no requirement for sign-ups or identification verification. Know Your Customer (KYC) checks and other conditions must be met in order to use traditional finance services.

This basic distinction makes DeFi accessible to the unbanked, hence increasing financial inclusion.

DeFi also provides financial services that are not otherwise available.

It is possible to construct fresh new products that use several platforms by layering different DeFi services (also known as DeFi legos).

This adaptability enables the development of novel items for which anyone can devise strategies.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.