Login Register

DeFi vs Traditional Finance

DeFi vs Traditional Finance

The term DeFi, which is DeFi in English, has recently become very popular and has become frequently spoken. The aim of this sector, which can bring radical changes to both the crypto ecosystem and the financial world, is to transfer the traditional financial system to the crypto ecosystem in a decentralized, reliable and fast way. Open source and not tied to any authority, DeFi can be accessed by anyone and used with transparency. So much so that thanks to DeFi protocols, we can now quickly perform operations such as borrowing / giving, taking out loans, and obtaining interest income.

So how is DeFi different from the traditional world of finance?

First of all, in the traditional financial system, users have to be connected to an intermediary and be able to communicate with the system in this way. In addition, the communication between these two parties is controlled by a central authority. In fact, you cannot control your money and personal data yourself and entrust it to another institution. This is where the difference between DeFi and Traditional Finance comes into shape. Because in DeFi, you do not have to give your information to any institution and entrust your money to that institution. You can manage your own transactions, your own accounts completely by yourself, you can perform all your banking/financial transactions without being tied to an intermediary and a central authority. In this way, you can take control of the system into your own hands instead of the institutions you have to trust.

What Is Optimism (OP)? The Layer 2 Solution Shaping Ethereum’s Future
In the crypto asset market, technical limitations such as scalability, transaction costs, and speed have become increasingly significant, especially on major networks like Ethereum. Among the solutions developed to address these issues, Layer 2 protocols stand out, with Optimism (OP) emerging as one of the most prominent. Designed to improve transaction throughput and enhance user experience without...
What Is Regression and Why Do We Hear It So Much? 
Most decisions, especially the important ones, rely on more than just gut feeling. When there’s data involved, and when there’s something to predict or explain, regression often sits at the center of the process. It’s not just a statistical method. It’s a way to understand how things connect and how changes in one area might influence another. In business, health, finance, or tech, regression is one...
How Oscillators Work in Trading?
Oscillators are everywhere in technical analysis, but they’re often misunderstood. Traders add them to charts expecting clear buy and sell signals, but like any tool, they only work well when you understand what they’re actually measuring and when they tend to be most useful. At their core, oscillators are momentum indicators. They give you a sense of how strong a price move is and whether that strength...
What Is an Oscillator and Why Do Traders Use It?
If you’ve ever looked at a trading chart and noticed an extra line moving up and down under the price, you were probably looking at an oscillator. It’s one of the most common tools used by traders, and for good reason. Oscillators help spot moments when a price move might be slowing down or about to reverse. In a fast or sideways market, they give extra insight that price charts alone can’t. Markets...
How to Use AI for Crypto Trading?
Crypto trading can feel like a full-time job even when it’s just a side hustle. The market never sleeps. Prices jump without warning. Sentiment changes faster than you can refresh a page. Many traders burn out trying to keep up with it all manually. That’s where artificial intelligence comes in. Not in a science fiction way, but in a real, practical sense. AI is already helping thousands of traders...


Create an account

Now create an account where you can use your knowledge.
SIGN UP