What is DeFi? Essential knowledge for new investors
DeFi, short for Decentralized Finance, is a decentralized financial system built on public blockchains such as Ethereum, Binance Smart Chain, and Polkadot. Unlike traditional finance, DeFi does not require the intervention of intermediaries like banks, insurance companies, or other financial institutions. Instead, all transactions and financial activities are conducted through smart contracts. How DeFi works? DeFi operates based on blockchain technology and smart contracts. Smart contracts are programs that automate financial transactions and their associated conditions. Once the conditions are met, the contract automatically executes the transaction without human intervention. 💥💥💥 Trade cryptocurrencies at reputable exchanges: https://azcoin.org/best-crypto-exchanges/ Main components of DeFi 🌳 Stablecoins : These are cryptocurrencies designed to maintain a stable value relative to a specific asset, usually USD. Examples include USDT, USDC, and DAI. 🌳 Decentralized Exchanges (DEX