- Home
- Cryptocurrency
- Articles
- What are DeFi services and how can they benefit you?
What are DeFi services and how can they benefit you? | RateCity
Imagine you want to open a bank account and are deciding which bank to choose. You may find that some offer you a higher interest rate on your money while others provide free teller services.
Sending and receiving money or paying for something online is a small fraction of the financial services a traditional brick and mortar bank offers you. At a traditional bank, you can borrow, lend, and earn interest on the money in your account, invest, trade, buy bonds or derivatives, and also benefit from portfolio management suggestions.
When the first cryptocurrency, Bitcoin, was created, the financial services available for cryptocurrency were very limited, and mostly related to sending and receiving money. However, over the last few years, people have significantly pushed the envelope of what they can do with cryptocurrency.
Cryptocurrency transactions are stored in a blockchain, and the community is building various blockchain protocols to offer a host of different financial services. Some of these financial services may be similar to those offered by traditional banks, while others may be completely new in the marketplace.
- The nature of blockchain technology is that transactions are stored across many locations in a decentralised manner, earning the name "Decentralised Finance" or "DeFi" for short.
In short, DeFi is the term used when explaining how cryptocurrency and other blockchain-based finance applications operate.
What is the need for DeFi?
Using traditional financial services requires us to trust that the banks are working in our best interest. However, DeFi is open source and borderless, and it's also trustless, meaning that all parties come to a consensus on what the truth is, rather than trusting a central authority to declare what the truth is.
We may take it for granted in Australia, but traditional finance is not available to millions of people in the world simply because they may not be able to open a bank account. DeFi, however, is accessible to anyone with an internet connection making the service equal for all. In decentralised finance, services are essentially available all the time and not only within working hours.
Removing the need for approval by central authorities could potentially make transactions instant, borderless, and more economical in the long run, reducing transaction time to almost nothing and saving on transaction fees in the process.
For example, in the world of DeFi, it may be possible to ‘stream’ money to an account, meaning that you could receive your salary by the second, rather than only at the end of the month. You could also borrow money from a single account, as is done traditionally, or borrow from a pool in which many lenders have provided funds.
Where can I find DeFi services?
DeFi is constantly evolving, and innovators in the community are pushing the boundaries rapidly. As more solutions become available, experts try to predict the blockchain of the future.
Will it boil down to a single option, or will there be several strong ones? We can’t say for sure. But what we know is that many of the emerging financial services, including DeFi, have the potential to change the financial landscape forever.
Subscribe to our newsletter
By continuing, I accept RateCity's Privacy Policy, Terms of Use and Disclaimer.
Compare cryptocurrency exchanges
Swyftx
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD, NZD
Trading Fee: 0.6%-0% based on a rolling 30 day's trading volume
Withdrawal Fee: $0 for AUD/ Deposit's withdrawals. Network transaction fees apply while transferring coins to an external wallet
Deposit Fees: No POLi fees. No fees on cryptocurrency and PayID deposits. Credit/Debit card deposits supported (5% fee)
An Australian owned and operated digital currency exchange that allows users to sell, trade and buy Bitcoin, and over 245+ other digital assets, with low trading fees and one of the smallest spreads available.
CoinJar
Cryptocurrencies available: 57
Fiat Currencies Accepted: AUD, GBP
Trading Fee: 0%-1%
Withdrawal Fee: No fee for AUD or GBP withdrawals. Cryptocurrency withdrawal fees are based on blockchain network fees
Deposit Fees: No fees with PayID; 2% fee with credit / debit card, Apple Pay, and Google Pay
Australia's longest-running cryptocurrency exchange with over 500,000 Australian customers and a simple to use app for both iOS and Android.
Digital Surge
Cryptocurrencies available: 245
Fiat Currencies Accepted: AUD
Trading Fee: 0.1%-0.5% based on a rolling 30 day trading volume.
Withdrawal Fee: None for Australian bank accounts - Instant withdrawals through Osko/PayID.
Deposit Fees: No fees for Osko/PayID, Direct Deposit, Bank Transfers or cryptocurrency. POLi fees range from $2-$3.30.
Because simplicity makes life better. The easiest way for Australians to buy, sell & store over 245+ cryptocurrencies. Low fees, tight spreads, Aussie-based customer support & an interface that makes crypto enjoyable & easy-to-understand. Simple. Safe. Stress-free.
CoinSpot
Cryptocurrencies available: 263
Fiat Currencies Accepted: AUD
Trading Fee: 0.1% to 1% based on order type
Withdrawal Fee: None for Australian Bank Accounts
Deposit Fees: No fees for POLi, PayID, Direct Deposit and Bank Transfers. 0.9% BPAY fee, 2.5% cash fee
Australia’s most trusted exchange since 2013.
Cointree
Cryptocurrencies available: 280+
Fiat Currencies Accepted: AUD
Trading Fee: 0.05%-0.9%
Withdrawal Fee: No fee with fiat withdrawals. Cryptocurrency withdrawal fees vary.
Deposit Fees: No fee
Buy, sell, trade and pay with crypto. Simple, low fees, easy to use and trusted by 100,000+ members. Enjoy $10 BTC credit after verification with promo code: RATE10
This information does not reflect any ranking, rating, recommendation or endorsement by RateCity of cryptocurrency or any specific provider. RateCity is providing factual information supplied by providers. Not all providers or products are shown. RateCity will earn a fee from the providers displayed in the table (if a link to the provider's website is shown), and the fee levels determine placement in the table. Cryptocurrencies are speculative, complex and can involve significant risks. RateCity is not providing a recommendation for your individual circumstances.
Product database updated 27 Apr, 2024
