What is the definition of 'tradfi' in relation to cryptocurrencies?

3 answers

• Dec 17, 2021 · 3 years ago
  Tradfi, short for traditional finance, is a term used to describe the traditional financial system that operates outside of the realm of cryptocurrencies. It includes banks, stock markets, and other traditional financial institutions. In contrast, cryptocurrencies operate on decentralized networks and are not controlled by any central authority. Tradfi and cryptocurrencies are often seen as two separate worlds, but there is increasing interest in bridging the gap between them through the development of decentralized finance (DeFi) projects.
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• Dec 17, 2021 · 3 years ago
  Tradfi is basically the opposite of DeFi (Decentralized Finance). While DeFi aims to create a financial system that is open, transparent, and accessible to everyone, tradfi refers to the traditional financial system that is centralized and controlled by banks and other financial institutions. Tradfi is often criticized for its lack of transparency and its exclusionary nature, whereas cryptocurrencies and DeFi are seen as offering more financial freedom and opportunities for individuals.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, defines tradfi as the traditional financial system that operates independently of cryptocurrencies. It includes banks, credit card companies, and other traditional financial institutions. Tradfi is often associated with centralized control, high fees, and limited accessibility. In contrast, cryptocurrencies offer decentralized control, lower fees, and global accessibility. While tradfi and cryptocurrencies have their own advantages and disadvantages, there is a growing interest in finding ways to integrate the two systems and leverage the benefits of both.
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