If you’ve been around crypto, you’ve probably heard the term DeFi. But, what is DeFi and why is it important? DeFi (decentralized finance) is a financial technology that cuts the middleman out of the equation. Generally, a financial transaction requires a bank or other financial institution to approve and process a transaction. Whether you are looking for a mortgage for a new home or making a purchase with your credit card at your corner store, a financial institution stands between both parties (and charges a fee for the transaction).
With DeFi, you are in complete control of your finances. You don’t need to work on banking hours or wait for approval for a loan or any other type of financial transaction. If you and another party agree to the terms, you can go ahead with your transaction immediately, saving you time and money.