CEFI VS DEFI :- What’s the difference 🚀🚀
So there is always a debate going on which is best cefi or defi ? So in this post we will look into positives as well as drawbacks of Both so that you can yourself decide which is best
Let’s start with The defination
CeFi or centralized finance is a concept that has been in the use for many years in this a centeralised agency such as bank facilities any kind of transaction that you perform and also holds custody over your money.
Same with Centeralized exchanges they are just like traditional Stock market exchanges Your exchange helds your funds and helps you in trading and use other crypto features
Positivies :-
1. Your funds are more safer here .
2. features such as simple crypto transfer
3. More ways to purchase crypto
4. only genuine cryptos are listed.
5. Easier to use
Negatives :-
1. Risk from any regularity actions
2. Your funds are not in your hands
DeFi - Decentralized finance is much newer then Cefi . In this transactions happen between Peer to peer and there Are no mediators just like buying and selling anything from a buyer for money in form of crypto , cash :)
Dex are based on decentralized mechanism and people get total control over there funds. They can buy or sell Even after being anonymous. Dex is like wallets , Decentalized exchanges
Features :-
1. control over funds
2. You can trade even being anonymous
3. More profits as u have to pay lesser fees
4. Peer to peer transactions
negatives :-
1. lesser security as compared to cex
2. Even scam projects are there
3. Lesser features as compared to cex
4. Hard to understand and use
So here we have given a complete breakdown on Dex vs Cex , And please tell us in comments whixh one do you like 😊