The Advantages of Decentralized Finance
- Bobby Simmons
- June 16, 2021
- 0 Comments
Even if you are not really into finance, it is almost impossible not to hear about Crypto and DeFi by extension. Starting with 2021, it’s all over the internet, almost more than the pandemic. If you are here, it means that your curiosity is making its way – and you are about to discover one of the best financial options in today’s era.With that being said, let’s see what DeFi is all about. Decentralized Finance – A Short DefinitionTo put it as simple as possible, Decentralized Finance is a type of crypto service built to replace the traditional banking system by providing people with more independence and financial security.If you’re asking yourself why traditional banking services need to be upgraded, then think about all the unpleasant situations you encountered with while wanting to benefit from bank offers. Low transfer processes, high taxes, blocked accounts, and let’s not forget how vulnerable our assets are against cyber attacks. DeFi was developed to overcome all of these issues, and the advantages are huge. Far beyond how we imagined the financial sector a couple of years ago. Top DeFi AvantagesThere are no third parties involved.Most banking issues come from human error, and this is the main reason why people are switching to DeFi services. Usually, you need to wait for a couple of days for somebody to approve a transfer – especially if the partner is signed in for other bank providers. Many bank accounts are blocked due to “suspicious activities”, and everything is such a nuisance. But DeFi activities are made just between you and your partner. The transfers are a lot quicker, and you’re the only one who manages your assets. There are significantly fewer fees.Speaking on managing your assets, you don’t need to pay the bank anymore – meaning bank employees, rent, and other elements that contribute to the bank services’ price. It is backed by blockchain technology.This means higher security than anything a bank could offer. Because in order to hack an account, malicious actors would need to own at least 51% of the total supply of tokens. You can easily earn passive income.DeFi Coins, for example, offers rewards depending on how much of the total supply of tokens you own. For example, if you own 1% of the total supply, you would get 1% of the exchange tax per user. Every time a user sells something on the platform, you will instantly be rewarded. It’s a continuous process. Ready to switch?Forget about bank services and upgrade your game. Join a safer and more profitable financial option. Join DeFi!