A chasm within the cryptocurrency space differentiates centralized finance (CeFi) and decentralized finance (DeFi); it is essential to dive into a head-to-head comparison to know more about these financial systems.
CeFi is an abbreviation for centralized finance, which is sometimes regarded as a closed financial market
In CeFi, central exchanges handle and manage every cryptocurrency trade order and fund, and users don’t own access to their wallets
Decentralized finance brings in different frameworks, tools, and technologies
Built on blockchain technologies, DeFi is an open and global financial system that offers secure transparency access with the assurance of flexibility, visibility, and control to financial services
Both centralized finance (CeFi) and decentralized finance (DeFi) have the same goal: to deliver a wide range of cryptocurrency-related financial services.
The technique used by these financial services to carry out their objectives is different, but they still aim at improving the trading volume and making the crypto exchange popular