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DeFi vs CeFi: Understanding Decentralized and Centralized Finance for Beginners
If you’re just getting into crypto, you’ve probably come across the terms DeFi and CeFi. Simply put, CeFi (centralized finance) is what most beginners start with — platforms like Binance or Coinbase manage your funds and provide support, but you have to trust them with your money. DeFi (decentralized finance) flips that around. Instead of a company holding your assets, smart contracts on the blockchain let you trade, lend, or earn interest directly, giving you full control.
The real difference comes down to trust vs control. CeFi is smoother and beginner-friendly, while DeFi offers more freedom but also more responsibility — there’s no help desk if you make a mistake. Both approaches have their pros and cons, and knowing them helps you choose the right path.
Want the full breakdown with examples, risks, and beginner tips? Check out the complete guide here: https://www.noirbull.com/guides/defi/
