[Learn] Why CeDeFi? NEOPIN

Welcome back to our journey into the world of CeDeFi!

In our last session, we learned about the basics of CeDeFi and how it leverages on the advantages while mitigating the disadvantages of both CeFi and DeFi.

Today, let’s dive deeper into the benefits of using CeDeFi!

Review: the difference between CeFi and DeFi

Before we start, let’s review our last post!

CeFi and DeFi stand for Centralized Finance and Decentralized Finance.

CeFi stands for Centralized Finance, where users entrust their assets to a centralized party and users authorize them to manage their assets.

On the other hand, DeFi stands for Decentralized Finance, where users manage their assets themselves instead of entrusting third parties. All transactions are recorded on the blockchain, and when certain conditions in the contract are met, the transaction is automatically executed via a smart contract.

To simplify, CeFi is like a bank where a centralized third party manages users’ assets, while in DeFi, users hold their assets on a transparent platform and transactions are publicly recorded.

CeFi’s Advantages

CeFi services have an advantage for non-crypto users at the beginning, because they are similar to traditional financial services. When newcomers to the crypto scene use a DeFi service, they face the challenge of managing their private key. In CeFi, users are relatively free from the risk of losing their private keys, such as mnemonics, because the platform manages private keys on behalf of users. However, this could be the biggest disadvantage of CeFi in terms of platform operators using individuals’ assets on the platform.

Therefore, it is clear that CeFi has a competitive advantage in terms of ease of use, just as traditional banking services strive to have a better UI/UX to attract more users.

CeFi’s Disadvantages

So what are the drawbacks of CeFi?

As we briefly mentioned above, there is a risk of transparency, as users must entrust control of their assets to authorized institutions.

For example, many problems, including those caused by centralized parties such as FTX, using customer assets came to the surface last year.

There is also a risk of not being able to withdraw cryptocurrencies if the trusted platform experiences issues or, in the worst-case scenario, bankruptcy.

In addition, the risk of hacking is the typical challenge that comes with the centralized approach.

Now, shall we take a look at the advantages and disadvantages of DeFi?

DeFi’s Advantages

DeFi has an advantage in terms of transparent asset management, since the assets are managed by a system without a third party. In particular, it is risk-free in terms of specific centralized institution management problem or bankruptcy.

DeFi’s Disadvantages

On the other hand, DeFi has its drawbacks. Since users must manage their own private keys, losing them would result in the irreversible loss of their assets.

In addition, unlike CeFi, identity verification is not always required for DeFi transactions, making it vulnerable to use in illegal money laundering processes.

Furthermore, DeFi services are primarily designed for crypto-savvy investors and are not particularly user-friendly. This can be a significant barrier for many potential users, who have to invest constant effort in learning how to use DeFi services.

What makes NEOPIN’s CeDeFi unique?

#1 Regulatory Compliance

Since its launch, NEOPIN has prioritized regulatory compliance, adhering to Know Your Customer (KYC), Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT) and Financial Action Task Force (FATF) standards. In this way, NEOPIN conducts its business in a compliant manner and is protected from regulatory risks.

#2 Assets are secured with non-custodial approach

NEOPIN, based on its core values of “Trust” and “Stability”, will continue to expand with diverse and high quality financial products. For you, NEOPIN’s valuable user, please manage your private key yourself. NEOPIN will NEVER have access to your assets because it is technically impossible as we are a non-custodial approach.

#3 Convenient UI/UX and customer service

NEOPIN has developed all of its products, such as the wallet and DeFi products, with in-house resources. From the beginning, our main goal has been to create a more convenient and easier user experience with a minimum number of clicks.

We are committed to delivering on our promise to lead the mass adoption of blockchain technology by providing users with a practical, convenient, and user-oriented UI/UX. For example, during our last rebranding, we focused heavily on improving our UI and UX.

If you find DeFi too challenging and CeFi not reliable, DO NOT HESITATE to use NEOPIN, the world’s leading CeDeFi platform that combines the best of both!

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