DEFI BANKING PART 5 - ADVANTAGES AND DISADVANTAGES

This week is going to be full of the God-kind of surprises, I feel like I can taste it! There’s so much good that’s happening that we won’t hear in the news, but for sure once we keep our ears and hearts plugged into God’s Word and His Spirit, we will have a constant flow of good news, even when bad things try to happen!

Today I’m sharing one of the advantages and one of the disadvantages of DeFi and tomorrow I’ll do the same. I’m going to preface this post by saying that most of the disadvantages can be overcome by simply becoming disciplined about your crypto and DeFi education and remaining focused on what you’re doing.

Disadvantage

Market Volatility - crypto moves almost as fast as lightning.😩 These coins soar and plunge with regularity and there are many reasons for that. To combat this, maybe you could take advantage of the staking features of your DeFi bank, that way you’ll be gaining interest even if the coin is plummeting.

Advantage

Lower transaction rates and higher interest rates!🤸🏾‍♀️ There is no middle man and there are no brokers assisting with your financial services, like loans or staking. The interest rates from centralized banks like Chase, Royal Bank, Scotia Bank, or Wells Fargo don’t even come close to what you can receive from a decentralized bank.

Let’s check out the interest rate for some banks:

Centralized (CeFi)

Chase Bank = 0.01%

Wells Fargo = 0.01%

Royal Bank = 0.01 (if balance is $5K and over)

Scotia bank = 0.06%

Decentralized (DeFi):

Pancake Swap = 7%

Nexo Bank = 10-17% depending on coins staked

Aave = can easily surpass 15%

Celcius Bank = 9-11% depending on the coins staked

The differences are huge! Find out more about the advantages and disadvantages of DeFi in tomorrow’s post. Peace!✌🏾

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.