DeFi is decentralized finance. It is an ecosystem of block chain based on digital finance tools. It includes digital securities and cryptocurrency to (NFTs) Non-Fungible Tokens and (CBDCs)-Central bank digital currency. DeFi also refers to services that permit crypto trading, loan, interests accounts, and others.

Importance of DeFi

Nowadays, you will see dozen of 3rd parties involved to store the currencies. Banks and exchanges are the first and foremost forms to store our currencies. But DeFi offers a much higher level of autonomy with transparency in every transaction. It allows people to lend or borrow funds from others. Due to its decentralized nature, all the transactions are processed on-chain with ease. In DeFi cryptocurrency, you are the custodian. You have full access and control over all your crypto-private keys. You can easily manage and exchange your cryptocurrency for fiat currencies.
With DeFi in cryptocurrency you can earn more income in your wallet through different means:-

DeFi Staking
DeFi staking is one of the best options to achieve passive income. User locks crypto wallets to participate in a proof of stake (PoS) blockchain system. In return, they get a predefined interest rate which surely gives a great hike to their crypto wallet.

DeFi Yield Farming
Yield farming is another way to gain additional passive income in your crypto wallet. Yield farmers get liquidity in the form of crypto assets to a decentralized exchange. The DEX decentralized exchange uses this liquidity to execute orders. Aave, yearn finance or compound are the names of a few.

Coins and Token
You can deposit on DeFi with a large variety of coins and tokens. All you need to start with buying some cryptos using traditional currency (cash) called Fiat. DeFi operates on the Ethereum blockchain. Bitcoin is not accepted in vast major DeFi platforms.

Borrow and Lend
Get decided first on which token you want to deposit. After that, you can easily buy and trade on a centralized and decentralized exchange. You can boost your income by borrowing or lending the token and coins. Sell them back on the same or different platform and earn great rewards.


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