How to Educate Yourself on DeFi

Unless you’ve been living under a rock, you’ve heard about Bitcoin. But Ethereum is a different form of cryptocurrency nipping at Bitcoin’s heels. It’s based on a decentralized finance model, or DeFi, which has implications far broader than just crypto. Here’s a primer on DeFi, and a bevy of sources for in-depth learning.

A thoughtful-looking young woman adjusts her glasses.
(Image credit: Getty Images)

Decentralized finance, more commonly known as DeFi, presents a fundamental shift in the way we’ve built our financial system. It’s the building block of the world’s No. 2 cryptocurrency, Ethereum. If you don’t have a solid understanding of it yet, it’s time to get started.

At its most basic, DeFi is a different use of blockchain, the underlying technology of cryptocurrencies such as Bitcoin. It has the potential to remove banks from the equation, creating a more transparent, traceable system that makes finance accessible to a broader range of people. From crowdsourcing student loans to expanding investment options, DeFi can give you more financial choices.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up
Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

Barbara Petitt, Ph.D., CFA®
Managing Director of Professional Learning, CFA Institute

Barbara Petitt, Ph.D., CFA®, is managing director of professional learning at CFA Institute, responsible for offering high-quality, practitioner-relevant educational content to help members and industry professionals strengthen their knowledge, skills and competencies. 
She holds the CFA charter and a Ph.D. in Finance from the University of Grenoble Alpes and a master's in Management from EDHEC Business School.