Distinguishing DeFi, CeFi, and TradFi — they sound similar but are very different :(((
On the first day I heard these 3 terms, I was confused.
After researching, I understood:
- TradFi = traditional finance (banks, securities).
- CeFi = centralized exchange like Binance.
- DeFi = decentralized finance, everything on-chain.
DeFi offers more freedom, but the risks are also higher because no one can save you when you get hacked.
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