🔶 CeFi (Centralized Finance)
•Managed by Central Authorities
Platforms like Binance or Coinbase operate under companies or institutions that control how things work.
•Platform Controls User Assets
Your crypto is held by the platform—you don’t have full control.
•Requires Trust
Users must trust that the company is acting honestly. Transactions are private and not visible on-chain.
•Account Creation & KYC Required
You need to sign up, verify your identity (Know Your Customer).
•Vulnerable to Centralized Failures
If the company is hacked or goes down, you could lose access to funds.
Examples:
🔸
#Binance 🔸
#coinbase 🔸
#KUCOIN 🟩 DeFi (Decentralized Finance)
•No Intermediaries
Operates through smart contracts without banks or companies.
•User Controls Assets
You control your funds via a private wallet—no middleman.
•Trustless System
Code replaces trust. Everything is transparent and recorded on the blockchain.
•Open & No KYC
•Anyone with a crypto wallet can use DeFi apps without revealing personal information.
•Smart Contract Risks
While there's no central point of failure, bugs in code can be exploited.
Examples:
🐰
#PancakeSwap 🦄
#UniSwap