What Is DEFI?
DeFi (Decentralized Finance) is like using money on the internet without needing a bank. You can do things like trade, lend, or earn interest without asking anyone for permission.
Centralized Exchange?
A centralized exchange would be like a Binance, Crypto.com, and Coinbase.
This would be considered a “custodial wallet” by where some business holds your money and crypto. You could consider apps like Robinhood, Webull, Cash App and others to be in the same category.
Crypto Exchanges
DeFi (Decentralized Finance)
A DEFI wallet would be like a Metamask, Trust Wallet, or Coinbase Wallet (different from Coinbase exchange).
This would be considered a “custodial wallet” by where some business holds your money and crypto. You could consider apps like Robinhood, Webull, Cash App and others to be in the same category.
Crypto DEFI Wallets
What's the difference?
One of the major differences is the risk. In DEFI you are your own bank vrs a centralized exchange is like a bank. If the bank goes bankrupt you loose your money.
“Not your keys, not your crypto”
Why choose DEFI over an exchange?
DEFI has Utility. We can fun stuff like create smart contracts to play games, treasure hunts, rewards, an much more. If we limit ourselves to an exchange there wont be much else to do with except trade and stake. We are implementing our project into an augmented reality game where you can bring the digital world into the real world.
Playing the Chain Game
Here is the way it works. Your DEFI wallet can use ANY of these chains.
Each chain has a "native token" which needed to send tokens back and forth and to buy and sell. Any other tokens on that chain are considered "wrapped tokens"
Ethereum was thet 1st ERC20 chain so all DEFI wallets default to ETH and you usually have to add the other chains
