The Difference between CeFi and DeFi

Whether you are in the stock market, trading Forex, or new to cryptocurrency, you will come across a lot of terms that may sound unfamiliar such as CeFi or DeFi. Trading and Investment have their own language, and it can be difficult to learn all these new terms. However they can be quite useful if you want to keep up with the trends in the financial markets.

CeFi vs DeFi – These two acronyms might sound similar but they have different meanings.

Simply put, CeFi, which stands for Centralized Finance, is the conventional financial system of today such as Banks, Insurance, Stock Markets etc, with a central controlling authority.

Decentralized Finance, shortly known as DeFi stands for financial services that are permissionless, secure and transparent and does not require a central authority.

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