What Is Defi? How Does It Work? How To Start Investing In Cryptocurrencies With Defi?

What is DeFi?

Defi is an innovative new concept in the world of cryptocurrency. This platform allows investors to purchase crypto assets with fiat money (USD/EUR) instead of relying on credit cards or bank transfers.

DeFi The Future of Finance explained

Decentralized Finance (aka DEFI) is the advanced and superior update for the financial World. As the name says, Defi cuts off the intermediate between a person-to-person transaction (P2P) or any financial transactions through revolutionary Blockchain technology.

Defi is an innovative new way for people to invest in cryptocurrencies without buying them first. It allows users to purchase crypto assets using fiat currency (e.g., USD) and then convert those funds into cryptocurrency at any point in the future.

How does DeFi works

Defi is making it possible to do financial transactions without the intermediate, like bank/credit card company, institutions, or whatever in between your transaction which controls it.

With the golden pot of the crypto universe, the intelligent contracts in Blockchain. Users earn interest by lending out their funds while borrowers pay back the principal plus interest at regular intervals.

What is DeFi

Why DeFi?

  • Why do we need a better alternative to the traditional financial system?
  • Did you ever think about absolute independence?
  • If you think you are independent enough, why do we need somebody as a third party to pay for whatever we paid for?

That’s where the word decentralized makes sense.

DEFI smart contracts bring off financial transactions. Once the specific conditions are applicable, Permit to lend or borrow money.


Defi will launch with Ethereum (ETH) as its base currency

Defi will initially support ETH, BTC, LTC, BCH, EOS, XRP, XLM, ZEC, DASH, TRX, and more. It will also offer margin trading, lending, and other features.

DeFi liquidity mining

Defi is a unique concept that allows people to lend money to others willing to invest in cryptocurrencies. This means you can borrow money from other investors instead of buying cryptocurrency. You then use this borrowed money to invest in cryptocurrencies.

Pros and Cons

You don’t have to maintain your credit score, Getting the accessibility of the full controls, Better returns on investment as an interest or profit, you should also be aware that Ultimate Control over your transaction has both good and bad sides. As you get the freedom, you are also responsible for your transactions.

You are the boss who controls where your money goes or comes from or how you spend it. With a button press, you are done with the transaction. There is no undo or chance for a refund if you made a mistake. It is also necessary to understand getting into it, as the bright metal glowing isn’t always gold. Better to understand its drawbacks and perks of it. Everything runs on code. Nothing is perfect in this World. One simple bug can be brutal.

Moon is far but not somewhere we can’t reach, Understand it before having it -Green Banana.