Decentralized finances have brought an entirely new vision to financial services. With the development of DeFi scope, numerous DeFi tokens are launched in the market. DeFi cryptos are available on cryptocurrency exchanges, so you can buy crypto online. The most convenient way to buy DeFi tokens is the WhiteBIT crypto platform. This service allows buying cryptocurrency, exchanging, swapping, selling, and withdrawing funds to a band card. Now let’s talk about DeFi in more detail.
DeFi in Crypto Trading
Let’s see how DeFi works. Suppose you want to take out a loan from a bank. In this case, you need to provide some funds that will act as collateral. Then the bank worker will check your financial credibility and set the percentage rate for your loan. The bank gives you funds from a deposit pool while receiving interest from your regular payments. If you begin defaulting on your loan, the bank can seize your collateral. Thus, the bank is the body taking decisions and control over all the processes connected with your funds.
In DeFi, it works in an entirely different way. “Decentralized finances” mean no central body to control your finances. You add crypto coins as collateral and receive a loan. A smart contract acts as an intermediary. Where do the funds come from, you ask? Everything is simple - other users provide you with their funds and receive interest in return.
Advantages of DeFi:
- flexible and completely safe financial processes, which are much more efficient than the conventional bank tools we are all used to;
- it does not matter if you are wealthy or not - the system does not care. It expands the number of customers and products that may access DeFi technologies.
- Loans are not the only thing you may take in DeFi - you can act as a funds provider, join a pool and receive interest from your deposit.
Here is the list of some up-and-coming DeFi projects:
- BOT Planet
- Sin City
Most of them are listed on popular and large crypto exchanges and participate in crypto trading. For more information on buying crypto and DeFi, check out the White Blog - the resource with loads of helpful articles and reviews on promising projects, including DeFi technologies.