DeFi is Next-Gen Investment Instrument in Crypto

DeFi or Decentralized Finance was born in the last bull run cycle. This word was started on the Ethereum blockchain first but later on some other chains also adopted it and multiple projects were available on different chains at that time. We have seen how some of the projects have grown significantly in the past and because of that people can make massive amounts of money through decentralised financing.

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As the name is self-explanatory the finance is decentralised which means that the investment is not owned by any third party or intermediary. We get the power to invest in protocol using the non-custodial wallets which can be meta masks or others. Because we do invest using the non-custodial wallets and own the key of the wallet then the funds remain in the custody of the user. We do not need to take any approval or authority from any 3rd party, which drives decentralisation on the investment.

While we have seen how this segment grew in the last market cycle I expect that it is going to be even bigger in the upcoming cycle. Experts are expecting that the year 2000 and 24 is going to be the time for the Bitcoin market bull run and that is when we can also see this segment growing significantly. This is the new AIS investing solution because we are not dependent on anything like banks or any financial instruments. Complete freedom is provided to the investor and as an investor, we always have control over our funds. The returns are way higher as compared to traditional options.

Everything is technology-driven and runs on the smart contract so whatever is defined as logic on the protocol will be followed automatically. There is no manual intervention however we need to know which pool is best for us and also must consider the impermanent loss on different pairs on the protocol. Other than this everything is good and we can choose any protocol that is reliable and audited well.

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