Decentralized Finance (DeFi) is the Next-Gen Investment Instrument

@indiaunited team has been doing great through the weekly contests and this way they are giving us the opportunity to talk about various topics related to blockchain and cryptocurrency. I like this initiative a lot because they come up with different topics for us to write about and this way we also get to learn more. I do some research about the topic and this is like knowledge enhancement on a weekly basis which I think is great.

This week the topic is decentralized finance (DeFi) and this is one of the topics that I believe everyone in crypto is aware of. In fact, this is a very common word in a lot of crypto markets. It's because it provides a great earning opportunity on our digital assets holding. We can't deposit are crypto coins in pools provide by the DeFi platform.

How Decentralized Finance Work

DeFi is the new face of investment where we can invest as per our preference and that to keeping control with us all the time. There is no manual intervention and the entire process is run by blockchain technology so there is no scope of manipulation as well. The smart contract is designed in such a way that it works as per the white paper and things run through the automatic process. there is also no room for any intermediary so we need not to go through any complicated process to invest or to make changes in the existing investment. East transaction costs a certain amount but this varies depending upon the blockchain that is used to build the platform. For example, the transaction fee is high in theory and blockchain but it is very low in the binance smart chain.

Why do I like DeFi?

I always look for options for investment where I can make more money provided these are reliable and trustworthy. I would like to mention that decentralized finance is something that can offer us great opportunity to earn through investment however it is also recommended to do the research before the investment fully stop. My investment journey with decentralized finance started after the launch of cub finance. I was looking for a platform where I can invest some money but reliability was one of the issues because of that I was waiting and finally, there was an option provided by the finance team. I am an early investor of cubDeFi and still I hold all my tokens in the pool and it is earning as per the current apr. There was a time when the token price was almost 4 to $5 but now it's not even $0.05 so I have seen a huge drop in the price. Despite the fact that the price is down I'm still holding all my tokens with the hope that it will improve and I am not in a hurry so I will wait for the right time.

DeFi Future

I believe in this new way after investment and I'm sure the future is bright because a lot of people are seeking options for better Return On Investment (ROI). If we talk about the risk factor then we cannot ignore the fact that risk is involved in each investment including the options that we get with Fiat currency or even with the traditional banking system. So if I am going to get risk everywhere then why shouldn't I choose the one which can give me greater returns which is not possible with traditional finance? So I choose decent lies finance over traditional finance because it's better in many ways and most of all it pays me way better than what I can earn with the traditional system. I'm also sure that there are a lot of people who think like me and this is the reason why more people are getting on board with DeFi.

I believe in crypto and this is a revolution that has given us the opportunity to build a great portfolio for the long term where it can also generate a nice passive income. I agree that there are many other options where also we can create passive income sources but I don't think these are as good as crypto. We are in the early phase and I expect that there will be fantastic growth in the coming years those who have joined now will be happy with the decision.

We can see a lot of adoption worldwide and even many initiatives that are bringing more value to the ecosystem. It's a fast-growing segment where development and innovation are way high so the value appreciation should also go the same way. Maybe as of now, it is not as popular as it should be but for sure we are going to witness this significant growth in the next few years. This time when the market is in bearish sentiment then I'll talk we can see many initiatives and good adoption and partnership which is a sign that things are on the right track and the next bull run will break all the previous records.

Thank you

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