Topic: What's The Actual Difference Between Cryptocurrency And Decentralized Finance (Read 223 times)
September 01, 2022, 01:01:11 AM
Why bother to differentiate? I don't understand either of them but use them daily, it's ok to not understand
August 31, 2022, 01:26:33 PM
~snip~
I already many peoples already answered your question . Before answering your question , I will let you know that here in cryptocurrency you will find two wallet one Decentralised (Trust wallet) wallet where no others 3rd parties controls on user fund and on the others hand Centralised which have a central control system like banks . Decentralize means you have to understand that there is no third party involved. For more clear see this picture below.
August 31, 2022, 11:56:48 AM
Wow! Now I see the reason why some people go as far as terming cryptocurrency scam/ponzi. It means some of the so called decentralized finance simply used the word "Decentralized" to entice investors meanwhile, they are being controlled.
Ponzi is a more specific type of scam and is not really an innate effect of de-fi itself. Perhaps this scheme can happen in the defi space too since smart contracts can be built for different purposes of use. Cryptocurrency is just a means, nothing more.Since ponzi is considered a crime, founders generally disguise their schemes and prefer the path of centralization.
August 31, 2022, 07:14:20 AM
Cryptocurrency is a decentralized currency, DeFi is an application built around this decentralized currency. Many DeFi projects are created on Ethereum smart contracts and they can have tokens on this platform. DeFi claims to be an alternative to what they call "traditional finance" or "centralized finance", but this is far from truth, because DeFi is very limited, it provides very small list of financial instruments. For example, there are decentralized loans, but you need to provide a huge collateral, which lowers the utility of such instrument, because why would you need to borrow money if you already have them?
Wow! Now I see the reason why some people go as far as terming cryptocurrency scam/ponzi. It means some of the so called decentralized finance simply used the word "Decentralized" to entice investors meanwhile, they are being controlled.
One really needs to study the two (Cryptocurrency And Decentralized Finance) very well before venturing into it.
I appreciate all the replies here. Very educative.
August 30, 2022, 09:59:16 PM
Defi = altcoins
cryptocurrencies = bitcoin and altcoins
I don't think this definition is correct.cryptocurrencies = bitcoin and altcoins
Decentralized finance is essentially any system that offers financial freedom without needing any centralized authority. So we could even categorize bitcoin under decentralized finance. We could also categorize DEXes as decentralized finance.
Unfortunately the term "decentralized finance" or short "DeFi" is commonly used to describe the newest scam token creation method that doesn't solve anything either.
August 30, 2022, 05:02:40 PM
Most times I find it difficult to actually differentiate between cryptocurrency and decentralized finance. I believe here is the best place I can get the help/answer considering my curiosity.
Decentralized finance may not mean cryptocurrency only as the noun Finance, covers a lot. Finance can be the physical currency or a cryptocurrency. Decentralized finance just describes a situation where finance is spread through a distributed ledger as compared to the single ledger from finance that are centralized. Cryptocurrency is a digital currency that has leveraged on the idea of decentralization. 
August 30, 2022, 03:44:53 AM
- Decentralized Finance: provide everything that a fiat financial organization provides without any centralized owner.
- Cryptocurrency: It is a digital currency that is not governed by a centralized authority.
August 29, 2022, 09:01:20 AM
In my opinion, you should have done a Google search before asking such a question as there are numerous websites providing in detail definitions with examples. BTT is a forum where you ask questions that are not found on Google.
Both are interrelated and use Blockchain technology.
- Decentralized Finance: provide everything that a fiat financial organization provides without any centralized owner.
- Cryptocurrency: It is a digital currency that is not governed by a centralized authority.
Both are interrelated and use Blockchain technology.
August 29, 2022, 06:14:57 AM
Their is no different between the two, what is there is misconception of comprehension of cryptocurrency and decentralized currency. All cryptocurrencies are decentralized but not all digital currencies are decentralized. Cryptocurrency starting from the time bitcoin is been launched to the world, it's decentralized currency indecencies that nobody can control it's market structure or condition.
August 29, 2022, 05:32:24 AM
Most times I find it difficult to actually differentiate between cryptocurrency and decentralized finance. I believe here is the best place I can get the help/answer considering my curiosity.
TLDR:
Defi = altcoins
cryptocurrencies = bitcoin and altcoins
Defi are smartcontracts that will perform swaps/conversions between altcoins and will generate some yield for Users who decide to provide liquidity to those services.
August 29, 2022, 04:36:06 AM
Cryptocurrency works on a DeFi(decentralised finance) system which means for any transaction you don't need a third party to guarantee the transaction. Satoshi Nakamoto created Bitcoin with the prime objective to eliminate the need for a central authority when carrying out any money transfers. With DeFi, it's easy to transfer money without a guarantor whhc is a major issue with fiat.
August 29, 2022, 02:30:14 AM
Most times I find it difficult to actually differentiate between cryptocurrency and decentralized finance. I believe here is the best place I can get the help/answer considering my curiosity.
cryptocurrencies are decentralized finance, but not all cryptocurrencies are designed to be such. You may split cryptocurrencies into CEFI and DEFI. The second is focused on being decentralized, allowing you to communicate with smart contract protocols without going through any intermediaries; it is just you and the protocol. For example, to trade on an exchange, you must first register with a centralized exchange and be vetted, but Defi requires only you and your wallet.
These days I use to wonder if we really have defi in crypto though, they are been controlled by a group of people.
August 28, 2022, 06:35:29 PM
- Cryptocurrency -- a digital currency that could be an alternative to fiat currency
- Decentralized Finance -- which is a decentralized service that can allow us to trade, lend or borrow cryptocurrency
Prof-of-stake (POS) and Prof-of-work (POW) are the main reason why DeFi were here and discovered which is the only selective cryptocurrency that has this blockchain network to validate transactions.
This gives you a little insight into how they work, for further information, do your own research to know more.
August 28, 2022, 06:15:15 PM
Cryptocurrency is a decentralized currency, DeFi is an application built around this decentralized currency. Many DeFi projects are created on Ethereum smart contracts and they can have tokens on this platform. DeFi claims to be an alternative to what they call "traditional finance" or "centralized finance", but this is far from truth, because DeFi is very limited, it provides very small list of financial instruments. For example, there are decentralized loans, but you need to provide a huge collateral, which lowers the utility of such instrument, because why would you need to borrow money if you already have them?
August 28, 2022, 10:22:22 AM
Cryptocurrency is a coin or token that using a blockchain to record any transactions, while DEFI is a scam centralized cryptocurrency 
There's no such real decentralized in DEFI, they're only use a word decentralized to make average Joe interested and trust their project, just like how people interested in Bitcoin due to decentralized. There's a scam coins called UST or LUNA, they said the coins are decentralized, but it turn the both coins are controlled by the developer.
There's no such real decentralized in DEFI, they're only use a word decentralized to make average Joe interested and trust their project, just like how people interested in Bitcoin due to decentralized. There's a scam coins called UST or LUNA, they said the coins are decentralized, but it turn the both coins are controlled by the developer. 
August 28, 2022, 09:42:26 AM
Most times I find it difficult to actually differentiate between cryptocurrency and decentralized finance. I believe here is the best place I can get the help/answer considering my curiosity.
Cryptocurrency are what weve used to handle financial transaction digitally. Whereas defi is the term on a systematic approach on financial method likewise on banks that are use to gain profits or distribute, allocate ways on how to earn by means of various utilization using staking, farming, lending and any means to produce and generate a system for finance using dapps and blockchain technology. August 28, 2022, 08:26:27 AM
Cryptocurrencies are digital currencies that is using blockchain technology for transactions.
DeFi (decentralized financial) is a modern financial technology which is using a distributed ledger, the main purpose is that DeFi is what CeFi that requires intermediary can not provide, DeFi work in a way that intermediaries like bank and other institutions are not needed in a way there is no central control of a product or service.
DeFi is making use of peer-to-peer technology for a product or service, no intermediary needed.
DeFi (decentralized financial) is a modern financial technology which is using a distributed ledger, the main purpose is that DeFi is what CeFi that requires intermediary can not provide, DeFi work in a way that intermediaries like bank and other institutions are not needed in a way there is no central control of a product or service.
DeFi is making use of peer-to-peer technology for a product or service, no intermediary needed.
August 28, 2022, 07:09:45 AM
Most times I find it difficult to actually differentiate between cryptocurrency and decentralized finance. I believe here is the best place I can get the help/answer considering my curiosity.
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