You are most likely in the 99% of the world who has no idea what the hell Decentralised Finance (DeFi) is but by the end of this article, you’ll be in the 1%. Before we start, I have an initial disclaimer, it’s not the new Beats headphones, it’s not the next social cause or political party and it’s not a Ponzi scheme…. (seriously, it’s not!).When you google DeFi, most descriptions go like this:
“DeFi utilises ‘buzzword’ on a ‘buzzword’ using ‘technical jargon’ that allows users to ‘insert financial term’ using crypto”.
Crypto? I just felt the immediately shudder you just did. BUT… before you hit the X in the top right corner, wipe your browser history clean and feel disgusted with yourself for a few hours, let me explain what Decentralised Finance really is by telling you how I explained it to my 65 year old Dad:
“So, some smart people created a bunch of products so that any money you have stored in a bank account will earn you interest, meaning you’re earning money while your money is sat in your bank account doing nothing.”
My dad responded, “isn’t that what banks do?”, and I responded, “yes but it’s safer than leaving your money with a bank.”
Yeah… come at me Barclays.
But that’s basically what DeFi is, it’s banking but without the banks. It’s a way to use money you have stored in cryptocurrency to generate more money. Current interest rates for DeFi products are floating between 4–6%, so you can see the appeal when you compare that to your local building society. DeFi products have lower costs as it removes various middlemen out of the equation, operates without the issues of legacy IT equipment and has a healthy amount of money circulating between users. All this means more money stays with the users.
Now you know the basics, are you thinking “how can I get some of that sweet high interest rate money you’re talking about?”. Well it all starts with setting up an account where you can store your digital money. And that’s where Cent comes in.
Cent makes it simple to convert your money into any cryptocurrency and start earning interest. What are you waiting for?
⬇️ Get Cent for Android with our Early Access Program
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