CeFi – the OG of finance with a Web3 chick

Let’s continue our cryptobservation and dig into one of the pillars of modern crypto: a system that works across Web2 and Web3 – Centralized Finance (AKA CeFi).

So, when we talk about CeFi, we mean a trusted intermediary that carefully holds your assets for you – whereas in DeFi, you hold your assets and your private keys, as carefully as you choose. Think of it as an old-school bank vs. your childhood piggy bank. With CeFi, you simply step into a ready-made platform offering financial services, instead of juggling everything on your own.

It has some valuable pros, like chain abstraction, convenient trading and variety of cross-chain services.

But with great CeFi comes great... inconveniences:

• You don’t control direct access to your funds;
• Your assets in the power of the system;
• You'll have, ouch, to reveal your beautiful personality for the KYC process.

If you choose CeFi, you’re agreeing to play by someone else’s rules instead of writing your own. Compromise is often unavoidable in today’s financial landscape…

…unless you switch to a CeDeFi wallet and enjoy the best of both worlds!

More comprehensive posts coming soon, and until then:
If you could snap your fingers and get the best of both worlds, what feature would you pick?

Let us know in the comments!