Is TradFi or DeFi better?

Both TradFi and DeFi have tradeoffs. While DeFi is better for transparency, TradFi is better for real world use. Both have strengths and weaknesses, however, TradFi is the more widely used of the two.

TradFi is the established financial system that predates DeFi. The term was created retrospectively as the alternative to DeFi. It comprises multiple institutions, such as banks, insurance, equities, real estate, and more.

DeFi is the collection of financial services on the blockchain. It replicates the function of traditional finance, such as lending, borrowing, trading, payments, and more. What separates DeFi from traditional finance is the decentralization of the systems that are built out from blockchain protocols.

Can I make money from DeFi?

Yes, it is possible to make money in DeFi. There are many protocols that replicate familiar products and services in traditional finance. Some of these include lending, borrrowing, and trading.