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06 Jan 2023

DEFI FOR BEGINNERS

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 Inorder to comprehend DeFi or decentralized finance, let's briefly glance through Defi or centralized finance. In the traditional financial system or centralized finance, if you would like to send your money to somebody else, you are likely going to use some sort of an app such as Venmo or PayPal, or you are going to use a credit card such as a visa or MasterCard  

For you to do this, it has to go first to your bank, and from there, it goes through the third-party app, then it goes to the Bank of the receiver, and then the receiver finally receives this money. So this shows that third-party centralized intermediaries are included and used in order to conduct a transaction; however, on the other hand, with decentralized finance or DeFi for short, you basically send your money directly to the person with no centralized authority.
 Key-advantage of DEFi
   Talking about  Decentralized Finance, there are several advantages from which users of all ages, backgrounds, understandings, and standards could benefit. The key-advantage to DeFi is that it is open to everyone in the public and is completely anonymous to ensure maximum safety, flexibility, speed, including transparency.  

https://www.selopay.com

Furthermore I am  confident you will be wondering what does open mean, and to give straight answer to your question, it simply means that you do not need to apply for an account as you can just create a wallet in a matter of minutes. If you are someone who is unsure and are concerned about your personal information, you have nothing to worry about as DeFi is anonymous, which simply means that you do not have to provide any personal information in order to set up an account.

The other thing is that it's flexible-non-rigid, which means that you being the user can move your assets anywhere at any time without asking for permission, such as contacting an organization or company on the phone or paying expensive fees. In addition to that, DeFi is extremely fast, unlike traditional banking systems.


 •Stabled coin
For you to comprehend the doings of a decentralized financial system, you have to be acquaintance with stable coins and how they work in relation to your spending. Since, you might be concerned; what do stable coins have to do with DeFi and what aspects make stable coins importance?

•Stabled coins such as Tether and USD coins are all cryptocurrency tokens that are used to bridge decentralized finance with centralized finance. So, for example, when you buy one stable coin for $1, a new USD coin is minted, and later when you withdraw it, 1 USD coin is burned so that the coin is always worth one United States dollar
https://www.selopay.com

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