Crypto for Beginners: DeFi


Cryptocurrency can be daunting to new investors. This article focuses on the basics of Decentralized Finance, or DeFi. Specifically, how DeFi is Different than traditional finance

Crypto for Beginners: DeFi

Cryptocurrency has gained a lot of traction within the last few years, however there are still quite a few sceptics out there. In this piece we will discuss some of the basics of cryptocurrency for those of you who are new to this exciting world. We will also take a look at different Killer Whale Products , so our newer members can get a feel for how exactly Killer Whale Works. Specifically, we will be looking at the world of DeFi!

What is DeFi

Any Smart contract enabled currency, such as Ethereum, falls under the category of DeFi. DeFi stands for Decentralized Finance, and is one of the most fundamental aspects of cryptocurrency. traditional financial systems are considered centralized finance by comparison. This is because governments and banks can control the flow of money within the traditional economic system. DeFi on the other hand, is a system which has no banks. Instead, computer code allows for individuals to exchange their wealth amongst each other, however they see fit.

Traditional banking relies on trust, which is one of the biggest differences between the current centralized system and DeFi. When you keep your money in a bank, you have to trust that you’re leaving it in good hands. In DeFi, there is no need to place trust in a bank, because of the fact that the storage of your wealth is defined solely by computer code. You could even read through all those lines of code and verify its security and method of operation if you were so inclined.

DeFi has other advantages as well. DeFi is censorship resistant. This means there is far less say in how your money can and can’t be spent. Best of all, DeFi is far cheaper than the traditional banking system. There is no need to build large, nicely furnished banks, nor is there a need in DeFi to build massive skyscrapers, or pay anyone’s bank CEO salary. All of these reasons combined are why transactions and finance cost so much within the traditional system. Fees paid in DeFi are algorithmically calculated, and go directly towards the maintenance and security of the network, which includes the rewards received by miners and validators.

DeFi consists of many different components, especially as the number of DeFi applications and participants grows. These however, are a few of the most important aspects of DeFi


Stablecoins act as a sort of bridge between cryptocurrency and traditional finance. They are often tokens which represent fiat currency, or real-world assets. Stablecoins allow traders to park their crypto gains more easily, in a stable variety of cryptocurrency.

Lending and Borrowing

Lending and borrowing are one of the most unique applications of DeFi. There are many Automated Market Makers (AMMs) that allow users to both deposit and borrow their crypto from various liquidity pools. Depositing into a liquidity pool will earn you interest on what other users are borrowing. The rates for borrowing are also far lower than their traditional finance counterparts.

Decentralized Exchanges (DEXs)

DEXs are systems in which investors create a pool of different cryptocurrencies to exchange. Traders use that pool to exchange their cryptocurrencies for other cryptocurrencies at a minimal rate. This rate is usually around 0.5% and is locked in, meaning it cannot be inflated or deflated. The small amount of interest for exchange is paid to the DEXs investors. Furthermore, anyone can invest in a DEX or exchange through a DEX.


There are Killer Whale Products for every level of trader. As you become more familiar with cryptocurrency, rest assured you will have plenty of room for growth within the Killer Whale Pod! If you continue making smart investment decisions, such as using Killer Whale Signals and Strategies , you can graduate from using the Killer Whale Free Strategy to services such as Killer Whale Elite Signals sooner than you know it!

Killer Whale Crypto


Stay Up To Date

Get weekly insights and updates from the Killer Whale Crew

We do not send spam or sell your info. Click here to read our Privacy Policy


Start Trading

Want to get started in automated crypto trading? Check out Killer Whale's hand picked strategies