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What is Defi?
Defi stands for Decentralized financing. It is a term that includes various financial applications in cryptocurrency. In addition, this is not controlled by a single centralized body. Above all, it is not governed by a central body like RBI. There are specific reasons for decentralization. As nobody has control over it, no one can limit its speed. Moreover, it provides direct control of their money. 
The major advantage of Defi is it removes all the middle sources. Therefore, users have direct access to their funds. They will be able to do direct purchases, take loans, do insurance, crowdfunding, and many more. Basically, the idea is open finance.
The major advantage of Defi is it removes all the middle sources. Therefore, users have direct access to their funds. They will be able to do direct purchases, take loans, do insurance, crowdfunding, and many more. Basically, the idea is open finance.Ethereum applications
Most of the applications, that is Defi are on the Ethereum platform. It is the world’s second-largest cryptocurrency platform after Bitcoin. This platform is for smart contracts. The execution of transactions is automatic. Above all, it also gives more flexibility. Some types of Defi applications are :
- Decentralized exchanges (DEXs) – These platforms help users to exchange their cryptocurrency. It gets exchanged for other currencies. DEXs are a type of exchange where users trade their cryptocurrency. This happens without the involvement of any intermediary party.
- Stablecoins – The value of cryptocurrency varies a lot. In addition, it is very volatile in nature. So, Stablecoins are a cryptocurrency that got ties to an asset. This brings stability to the cryptocurrency.
- Lending platforms – This platform connects the borrower with the lender. They use smart contracts. So, this removes the option of middlemen or intermediaries.
- Prediction markets – This platform is for betting purposes. It is a market where people bet for the future outcome of something. Also, the aim of this platform is to provide the same functionality. The major advantage is the absence of middlemen.
Some new Defi concepts have also come up. The list includes:
- Yield Farming – This is basically for the users who are willing to take the risk. The users can scan among the various Defi tokens available. Among them all, he will check for opportunities that will yield more returns.
- Liquidity mining – This is the most popular form of yield farming. In this, the user earns free tokens by providing liquidity to the token.
- Composability – The Defi applications are in the public forum. So, anyone can view the code behind these
applications. Hence, these apps get used to creating new apps with the same code. The same code gets used as building blocks here.
- Money Legos – Legos are the toy blocks. By combing the toy blocks, a child creates a building or a structure with the legos. This works in the same way. Defi apps get combined together to build new financial applications.
Making money with Defi and risks involved
The Ethereum Defi projects are on the boom recently. Many users are making a lot of money from it. User can lend money and gain interest through this. Users can use yield farming methods to gain larger returns. But investing in Defi is risky as well. There is no governing body present. The systems are very complex. They don’t provide transparency. So, a lot of knowledge and exposure is the basic requirement for this.
A cryptocurrency wallet and a normal bank account are similar in many ways. However, the differences are also significant. The transactions with cryptocurrency are irreversible. Due to this, there is a requirement for a high level of security.
Things to consider while choosing a wallet
It is very essential to know certain things while choosing a cryptocurrency wallet. Also, it is important to understand the way it works. Below are the steps required to follow while setting up a 
cryptocurrency wallet.
cryptocurrency wallet. 1. Choose the type of wallet – desktop, mobile, or hardware.
2. Buying or downloading the wallet.
3. Installation of the software.
4. Setting up the account
5. Storing cryptocurrency.
The above steps can ensure the safety and security of the cryptocurrencies of the user.
Deciding on the right wallet
It is very important to understand the reason behind choosing the wallet. The need for the wallet matters the most. Different types of wallets get used for different purposes. The consideration of a few things is necessary. The storage of bitcoin or cryptocurrency is important. In addition, the duration is also essential. Security is a very crucial aspect. The security of the wallet is obviously the topmost priority.
Setting up a hardware wallet
This takes a lot of time. This is also the most secure form of wallet. There is added security. Storage in hardware devices makes it more secure. It is much more secure than online wallets. It is offline in nature. So, it is less prone to malware attacks by hackers.
After purchasing the hardware wallet, one can follow a few simple instructions to set it up. Majorly, it is a three-step process.
1. Download the software on the computer or mobile.
2. Write the recovery paraphrase of your private key.
3. Connecting the hardware with the software.
Setting up a mobile wallet
It is very easy to set up a mobile wallet. First of all, one has to choose a mobile cryptocurrency wallet. One needs to download and install it from the app store. It’s important to do a backup of the private keys on a physical device. This comes with a 12 or 24 letter paraphrase. Its usage is for the recovery process. Most mobile wallets provide instant access to cryptocurrency payments. There is only one disadvantage to this wallet. 
There is no customer care or support available if one loses the password of the wallet. Therefore, there will be no help available in this case and one will lose all his money.
There is no customer care or support available if one loses the password of the wallet. Therefore, there will be no help available in this case and one will lose all his money.Setting up a desktop wallet
It is similar to setting up a mobile wallet. First, one has to choose the appropriate wallet. Then one has to download and install the wallet on the desktop. Here also, one has to back up the paraphrase physically and secure it safely. Desktop wallets provide more features than other types of wallets. They give better graphical representation of the usage and tracking. One can track the value of the cryptocurrency in multiple ways.
Conclusion
To summarize it all, there are different types of wallets available. However, one can choose the wallet based on the requirements and usage.
Cryptocurrency is basically a digital currency. It is a medium of exchange for the purchase of goods and services. It does not come in physical form. A digital ledger shows the ownership of this currency. It is not issued by a central authority. There is no control of any legal authority on this form of currency. Bitcoin is the first cryptocurrency. In 2009, it released in the market.
Cryptocurrency and its legality
The legal aspect of cryptocurrency varies globally. There are no universal laws and regulations related to it till now. The regulations vary from country to country. In some countries, the trade and usage of cryptocurrency are legal. However, in other countries, they are completely banned. 
In eight countries, the trading and use of cryptocurrency are completely banned. After that, in the other 15 countries, there is an implicit ban. Some of them are Bahrain, Bangladesh, China, Iran, Kuwait. Due to a lack of specific laws and regulations, criminals use it for illegal purposes.
In eight countries, the trading and use of cryptocurrency are completely banned. After that, in the other 15 countries, there is an implicit ban. Some of them are Bahrain, Bangladesh, China, Iran, Kuwait. Due to a lack of specific laws and regulations, criminals use it for illegal purposes. The United States
Cryptocurrencies are legal in the United States for a long time. However, there are no centralized regulations regarding cryptocurrencies. The laws vary from state to state. The policies differ among the government agencies also. FinCEN considers it as money transmitters. The Internal Revenue System (IRS) considers it as property. Recently, the US Treasury has spoken about making regulations.
The European Union
Cryptocurrency is legal across the European Union. The rules differ from state to state. Taxation is also applied to cryptocurrency. The tax percentage varies from 0% to 50%. There were no such laws related to it in the EU. Recently, the 5th AML Directive got signed. It requires the crypto exchanges to follow the laws of the AML regulations.
The United Kingdom
Cryptocurrency is not legal in the UK. But crypto exchanges are legal. The Financial Conduct Authority (FCA) registers crypto assets. However, there are no regulations for cryptocurrency in the UK yet.
Russia
The status of crypto is a bit confusing in Russia. Initially, it was a substitute for money. But according to the recent laws of 2019, it is illegal. So, the legality of trading and the use of cryptocurrency is still not clear.
Australia
Cryptocurrency is legal in Australia. Its exchanges are also legal. Australia has better laws than other countries. AUSTRAC has established rules and regulations for the use of cryptocurrency. The cryptocurrency exchanges have to follow guidelines provided by AUSTRAC.
Japan
In Japan, crypto is legal and considered legal property. Taxation is also levied on cryptocurrency. Japan is one of the largest markets for Bitcoin. The country has implemented strict rules and regulations of cryptocurrencies.
India
The status of crypto is still ambiguous in India. The Reserve Bank of India (RBI) had banned it in the past. But due to a legal case, which is still in court, the crypto is still not banned. The future of cryptocurrency 
is still uncertain. Hence, there is no clarity on the rules and regulations surrounding cryptocurrencies.
is still uncertain. Hence, there is no clarity on the rules and regulations surrounding cryptocurrencies. Latin America
In Latin America, the laws vary from country to country. In some countries, like Bolivia, there is a ban on it. While other countries, like Brazil, are starting to make laws for it. In most countries, it is legal. Tax is also levied upon it. Mexico is the only country to have strict laws for cryptocurrencies. In other countries, there are no stringent regulations for it. So, it is a concern due to money laundering and terrorist financing in these countries.
Conclusion
The laws related to cryptocurrency vary all over the world. Most countries do have specific laws for them. Due to this, it’s exposure to financial crimes is increasing. Many countries are now trying to formulate strict laws for cryptocurrency. It would interesting to see the FATF recommendations on cryptocurrencies.
Cryptocurrency is becoming popular throughout the world. It is also known as digital or virtual currencies or “crypto” in short form. In addition, Cryptocurrencies are emerging as the currency of the future. Therefore, it is going to rule the future digital finance world.
The technology that makes Cryptocurrency functional is Blockchain. The main purpose of Blockchain was to run Bitcoin, the world’s first virtual coin. Cryptocurrency has, no doubt, become very popular among investors and banking institutions. However, there would be a lot of changes in the future to make it more acceptable and litigation free.
Cryptocurrency
It is a digital currency that exists in a virtual form. It functions by using cryptography. 
Cryptography is consisting of two words “crypt” (means “hidden”) and “graph” (“writing”). By using codes cryptography protects information and communication.
Cryptography is consisting of two words “crypt” (means “hidden”) and “graph” (“writing”). By using codes cryptography protects information and communication. Cryptocurrency is like real money but they take the form of digital or virtual form. These currencies are not managed by any authority, bank, or government institution. Two users make the transaction of this currency between them. In other words, there is no intermediary involved in the process.
Blockchain is the technology behind Cryptocurrency. It makes sure the transaction of money safe, secure, and easy.
Technology behind Cryptocurrency
Blockchain technology is a digital ledger of transactions. Satoshi Nakamoto created this technology. This technology has many possible benefits. This technology enhances the transaction process by reducing time, cost, and resources. In conclusion, these advantages have made it popular among crypto enthusiasts. This is the main reason why it has a very undeniable role in business. Blockchain-backed smart contracts reduce the costs incurred for audit, legal, and compliance.
Different Types of Cryptocurrencies
There are many cryptocurrencies in operation nowadays. Not that all are popular or have a large number of users. There are more than 2,000 cryptocurrencies that exist in the world. The most popular and accepted cryptocurrency is Bitcoin. Above all, it is the first and oldest of all digital currencies.
· Bitcoin
Bitcoin is the world’s first and most admired cryptocurrency. It is operating since January 2009. This currency is not under the control of any central bank or government or agency. In addition, Bitcoin is getting a lot of attention these days.
· Ethereum (ETH)
Ethereum, another well-liked cryptocurrency started in 2015. It is an open-source transaction platform that uses blockchain technology.
· Bitcoin Cash
Bitcoin Cash enhances some of the specific features of Bitcoin. It’s a kind of improvisation of Bitcoin. In Bitcoin 
Cash, the size of the blocks is bigger. Above all, the feature facilitates the processing of more transactions in the quickest time.
Cash, the size of the blocks is bigger. Above all, the feature facilitates the processing of more transactions in the quickest time.· Litecoin (LTC)
Litecoin is a Bitcoin substitute, created in 2011. It is a popular digital currency used in many countries. In addition, its tagline is “The Future of Money”.
· Ripple
Ripple is a different type of cryptocurrency than the above mentioned currencies. However, it is not Blockchain-based. Therefore, larger companies and corporations use Ripple for large transactions.
· Other Cryptocurrencies
Namecoin, Primecoin, Peercoin, Gridcoin, Dogecoin, Nxt, Dash, Titcoin are other popular digital currencies.