Decentralized Finance: Why Centralised Crypto Exchange Bankruptcies Are Driving More Users to DeFi

The recent bankruptcy of a major centralised crypto exchange has once again highlighted the risks of using these platforms to store and trade cryptocurrencies.

With hundreds of millions of dollars worth of users’ funds potentially lost, many are now turning to decentralized finance (DeFi) as a safer and more secure alternative.

DeFi, or decentralized finance, refers to a growing movement of financial applications that are built on blockchain technology and do not rely on centralized entities like banks or exchanges.

This means that users have full control over their own funds and do not need to trust a third party to hold and manage their assets.

One of the key advantages of DeFi is that it allows users to take advantage of self-custody. This means that users can hold and manage their own funds directly, without the need to entrust them to a centralized exchange.

This not only gives users greater control and security, but also allows them to access a wider range of financial services and products, such as lending, borrowing, and trading.

Another advantage of DeFi is that it enables users to earn passive income through staking.