Personal finance is an important subject. It doesn’t matter how much one earns, but how much he or she saves in the real question. Saving acts as a contingency fund that investors can use in times of emergency or unprecedented times.
Investors have to now look beyond banking and insurance for their investment needs. Until now, investors could either invest in debt-related instruments that yield a fixed rate of interest or in stocks and shares.
However, in the last few years, investors are actively investing in cryptocurrencies that yield good returns. With a continuous rise in cryptocurrency investment, investors also want to explore the world of decentralized finance (DeFi).
This article will help investors understand the meaning and concept of DeFi and its relevance to personal finance.
Decentralized Finance is an emerging financial ecosystem based on FinTech that is set to empower the investors regarding investment-making decisions without any intermediaries like bank, insurance, or NBFCs (Non-Banking Finacial Companies).
The entire operation of DeFi will operate on blockchain-based technology in a fully reliable and secured environment. The chance of error in this platform is non-existent because it will work on fin-tech software with no manual intervention.
All cryptocurrency-based investment, trading, sale, online deals, and purchase constitute a De-Fi ecosystem based on blockchain technology.
Advantages of Decentralised Finance
● Investors are empowered to directly transact online.
● Anybody can invest in any cryptocurrency from anywhere.
● All investment data is fully secured using cryptographic techniques and blockchain.
● It offers a competitive platform for investment and trading.
● DeFi can largely contribute to the nation’s economic development.
Disadvantages of Decentralised Finance
● Auditing standards of cryptocurrency deals and investments have to be set.
● The government of all countries must come forward to make De-Fi a reality.
● The online threat of potential data breaches can’t be ignored.
Today or tomorrow, Decentralised Finance will become an ultimate reality. As most people are going digital and the government of all countries supporting the same, it’s only a matter of time when De-Fi will become a new normal.
As the cryptocurrency market is growing rapidly, its market capitalization is also scaling unprecedented heights. The global blockchain market is likely to touch $23 billion by 2023. Even De-Fi is also growing by leap and bounds these days as more and more investors are realizing its revenue-generating capacity.
It doesn’t matter where you live, you can be a true global citizen by utilizing the unlimited investment potentials through the De-Fi ecosystem. If you want to experience the world of Decentralised Finance, all that you need is a few cryptocurrencies to invest in. That’s it. No document and no more signatures!
Disclaimer: This is a company press release. No HT journalist is involved in creation of this content.