DeFi vs CeFi represents two models of financial services. DeFi uses blockchain and smart contracts to enable peer-to-peer transactions without intermediaries, offering transparency, accessibility, and user control. CeFi, by contrast, relies on traditional institutions or centralized platforms to manage assets and execute trades. While DeFi is open and non-custodial, CeFi offers customer support, regulatory compliance, and sometimes lower risk. Each has advantages and trade-offs, with DeFi leading in innovation and freedom, and CeFi appealing to users seeking stability and simplicity.
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