🔶 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