After a deep study i decided to write about CEFI and DEFI here in our hive blockchain so that it can be understand and follow by infinite people. After reading this blog anyone can understand about why to choose DEFI? and why should leave CEFI? at all.
I know there are millions of people who actually hesitate to invest in DEFI because they don't know exactly how it works? and how they can income form it? how there asset safe in Defi? I am not going to write about these two financial service in details but whatever i will write that could be enough for any people who has hesitation in investing in DEFI.
What is CEFI?
It is popular with Centralized Finance which is controlled by someone or a group of persons or by Governments or in some cases controlled by both. If you would like to understand in details then please wait and keep scrolling down.
What is DEFI?
It is in trending these days everywhere, perhaps all over the world and it is popular with Decentralized Finance* and it is totally controlled by you (Investor) only.
Lets understand the difference between both in little details
CEFI
If anyone want to invest in CEFI then first foremost need to submit KYC (documents which is basically as a proof of you and known as Know Your Customer) it means your asset comes later before you have to produce your identity.
Country limitation is a big disadvantage of CEFI because if someone can earn more profit investing in UK financial institution then why should they invest in Indian financial institutions. It means you will have a fix earning from your investment always.
Censorship is also a big disadvantage of it because this institution will first try to investigate about your background character then you can deposit or money there or you can get loan from there. It means you are not free to deposit everywhere anytime.
No trace of investment yes, once you deposit your hard earning money in CEFI it means it has been out from your control now and now you can't see or trace where is your asset now, who is using your money now? who is earning from your money everyday?
Hope you can understand CEFI now.. now heading towards DEFI..
NO KYC required.
No country limitation. Sitting in India anyone can invest in USA for example.
There is no censorship rule at all. Your money your rule fundamental works here.
You can keep an eye always in your property. Everyday you can see it is growing or not? where it is right now? What is its current price? etc... Simple meaning of this is that you are owner of your property forever. You will sole responsible for loss or profit or your profit of your asset.
I would like to clear that you can not invest your country currency in DEFI but after exchanging that in Cryptocurrency you can surely invest in DEFI and the required Crypto could be Bitcoin, Ethereum or any other too. Our hive cryptocurrency is one of the best option too. DEFI works on decentralized app known as Dapps.
Disclaimer: Any investment is subject to market risk, this blog is mean to understand the difference between CEFI and DEFI.
Thanks
#staysafe
#hellohive
