DeFi Investment Guide for Financial Advisors: Decentralized Finance Explained

Decentralized Finance (DeFi) represents a revolutionary shift in financial services, leveraging blockchain technology to create open-source, permissionless, and transparent financial ecosystems. For financial advisors, understanding DeFi protocols, yield farming, liquidity pools, and smart contracts is crucial when evaluating cryptocurrency investments including ETH, BTC, and other digital assets. This comprehensive overview examines how DeFi eliminates traditional intermediaries through automated market makers and decentralized applications, providing clients with innovative exposure to financial markets.