DEFI BANKING PART 3

Yesterday we talked about the unbanked being able to use DEFI banking and today we’re digging deeper into DEFI.

There is a lot of FOMO (fear of missing out) when it comes to investing in crypto, but unless you know what you’re doing please don’t jump right into trading or investing just because you’re scared that you may be missing out. As with any other investment, we should be aware of the risks, and be properly leveraged especially because of the volatility of the cryptocurrency market. I highly suggest you find Mentors who are experienced in purchasing, investing, staking, and exchanging crypto to help you maneuver the volatile waters.

As previously discussed, DeFi operates without a central bank exercising control over their entire system, and with DeFi lending, the users (those who have the accounts, who have deposited their crypto) can lend out cryptocurrency, just like a traditional bank does with fiat currency (US Dollars). But with traditional banking, you’re attempting to borrow from the bank after they run your credit report. With DeFi banking, however, it’s just as the scripture says!

DEUTERONOMY 28:12 (NLT)

12 The Lord will send rain at the proper time from his rich treasury in the heavens and will bless all the work you do. You will lend to many nations, but you will never need to borrow from them. 🤸🏾‍♀️🤸🏾‍♀️🤸🏾‍♀️

With DeFi banking we are the LENDERS! And this is why the interest rates with DeFi banking are so competitive - because the crypto you deposited in the DeFi bank, is providing liquidity! You can also be a borrower if you’d like to as well. But … you’re borrowing from yourself!🙌🏾

There are DeFi banks that immediately give you access to a credit line right as you make your first deposit. One of the benefits of investing in cryptocurrency is that you’re able to use your holdings as collateral for a crypto loan, even if your holdings are relatively small.🤷🏾‍♀️

More on DeFi banking tomorrow. If you have questions let me know!

FOR EXPERT CRYPTO MENTORING SCROLL DOWN TO DCX ACADEMY

Copyright ©2022 Sherma Jacqueline Felix, BLACK ADVANTAGE Publishing™ . The author shall neither be liable nor responsible for any loss or damage allegedly arising from any information or suggestion in this post.