# Rayido talk about DeFi

By [Rayido](https://paragraph.com/@rayido) · 2022-09-14

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### What does it mean?

**_DeFi_** aka **Decentralized Finance**. The opposite of the DeFi is _CeFi_,_Centralized Finance_, which is a finance system that mostly control by specific institution. So DeFi is the non-controlled finance system which means we can do any financial activities **without controlling.**

![Different between DeFi & CeFi](https://storage.googleapis.com/papyrus_images/ae6e01151f736f8b53709b42f07135d9c48009965a88d46551a696a36877f242.png)

Different between DeFi & CeFi

### Any different from the bank now?

**Of course**. Now banks and institutions can agree or disagree your trade. For example, If you want to buy dollars,you have to through you bank account. Unfortunately, you coumtry stop this trade then you can’t find other way to buy dollar. But in DeFi, you got some BTC or ETH you can easily swap them into dollars or outher currency.I think this is the different bewteen DeFi and CeFi.

### What it can bring to our life?

In some ways, it can help you **control your private money**. No need to **give you properties to other**. In a word, It’s easy to use, **more flexible and fresh**.

### How can we start this?

*   First, buy some crypto currency in **Centralized Exchange(CEX)**
    
*   Second, setup a **Metamask** wallet
    
*   Third, **transfer** you currency from CEX to wallet
    
*   Last, To Uniswap and enjoy your swap.
    

![Uniswap UI](https://storage.googleapis.com/papyrus_images/f39a19583930a2f35b7961b516100fcbba7305d9ecbb6a2f641368d5820765b1.png)

Uniswap UI

### How I explain this to other:

For me I will explain like that

> **DeFi** is like the **_party_** while **CeFi** is like **_dancing contest_**. In DeFi, you can do what you want to do(If legal) and control your property more no one will intermeddle. Just like party you can dance with anyone you like and no one will control you actions. CeFi is the finance system now. And I will describe it like dancing contest because you can only dance with the same person and dance the same things

### Advantage:

Controling more, more privacy, decentralized

### Disadvantage:

not safe enough, the design of token economic should be improve, need to be more stable

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Thanks mates for reading, Those want I say are NFA, please DYOR

You can find me here:

[https://linktr.ee/rayido](https://linktr.ee/rayido)

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*Originally published on [Rayido](https://paragraph.com/@rayido/rayido-talk-about-defi)*