Decentralised finance, or DeFi, is an umbrella term for a variety of financial applications in the crypto and blockchain world. These aim to cut the middlemen from everyday financial transactions. For example, we need intermediaries, such as banks and stock exchanges, to make or receive payments. In DeFi, those middlemen are replaced by software.
Many believe that DeFi is the future of finance and that investing in the disruptive technology early can lead to massive gains. But it's difficult for a beginner to separate the good projects from the bad, and there is plenty of bad. Therefore, investing in DeFi can be quite risky.
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