What is DeFi Options Trading? Will it Really Click?
DeFi or Decentralized Finance is where blockchain is used to conduct a direct financial transaction between two entities. The main purpose of DeFi is to eliminate the need for intermediaries in transactions. From making simple payments to complex financial processes such as loans, derivatives, crowdfunding, and crypto investment, DeFi platforms are simplifying the process while maintaining security and transparency.
DeFi gained popularity in the second half of 2020 due to the Covid-19 pandemic. Though previously it followed and implemented as open finance, it has become a new trend only in recent times.
The crypto market offers the same trading tools as the regular stock market. Margin trading, leverage, futures, swaps, and options are a part of both markets.
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