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DeFi or Decentralized Finance is a financial system that is based on blockchain technology, especially Ethereum, which is publicly available. Simply, it is a self custody finance that is under our control, unlike the traditional finance system which is under the control of banks and other financial institutions.
DeFi is a financial system that eliminates the middleman in financial transactions. If one makes a financial transaction there’s always a middleman that acts as a merchant but here in DeFi there’s nothing like a middleman one can directly make payments using cryptocurrency that one owns.
How Does DeFi Work?
Decentralized Finance (DEFI) works on blockchain-based technology where transactions are recorded in blocks and when people verify these it gets connected with the rest of the blocks. No one can change the data in one block without affecting the others, hence it is a safe place for investments and transactions.
DeFi works on the policy of peer-to-peer where two people deal in cryptocurrency for goods and services involving a third party. DeFi has an open finance system where people can lend their assets and gain interest. All this information is stored in blocks.
Decentralized Exchange(DEX) is another aspect of DeFi that works on the algorithm of blockchain. Decentralized exchange offers people to exchange their tokens or assets; they can even swap their cryptocurrencies by using DEX without any involvement of intermediaries and brokers.
Prediction markets are opened by DeFi to predict the events of the future related to the price of currencies. One of the important aspects of DeFi is “Stable Coins”, the name itself defines its meaning. Stable coins’ values are attached to a stable currency or assets like gold or dollar to make fewer fluctuations. Stable coins are an integral part of DeFi and decentralized exchange.
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Why Is DeFi So Popular?
DeFi is the future of the financial system and has been gaining a lot of appreciation lately. People believe that by using DeFi marketing they can make millions in the upcoming times. DeFi is all set to make its permanent place in every individual’s mind whenever they think about investing, from loans to savings and earnings, DeFi is going to be everywhere. Here are some points that clearly define why nowadays people are more into decentralized finance.
- Banks and other financial institutions charge for their services, but DeFi charges nothing; it’s an open space with a secure network.
- DeFi makes you keep your money in a safe digital wallet, unlike banks.
- Anyone having an internet connection can use DeFi for transactions without any approval.
- DeFi allows people to make transitions with ease, one can transfer tokens and funds in a fraction of seconds.
As these benefits are increasing and crowds are engaging with them, the markets are all set to deliver their DeFi products and services and for that, they are using DeFi marking to make people aware and updated.
Don’t defy DeFi
— Elon Musk (@elonmusk) March 25, 2021
What Is The Need For Marketing
Marketing is the process by which people get to know about a business or a product in the same way DeFi marketing is done to reach both micro and macro investors. This type of Marketing is done to create the brand name and render services. By using marketing in the field of DeFi, a company can attract investors that will help in increasing the fund size of the company that will be used in different DeFi activities.
The other side of DeFi is to reach the fund-seekers and make them use our services, DeFi marketing bridges this gap between these two audiences by using different crypto marketing strategies.
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What Are Some Best Marketing Practices For Crypto Brands?
A crypto company gains a lot of customers from online portals. If a crypto company needs to gain inputs from marketing, they must know what to put on the internet and how to grab the advantage by initiating. Here are some marketing tips and strategies that crypto brands can use to stand out and flourish in crypto and DeFi marketing:
Choose Social Media Platform Wisely
One of the biggest mistakes that companies do is trying to make themselves available on as many social media platforms as possible to gain an audience. This is only a waste of time and money. Target the audience according to your needs. As Facebook is most popular among the elder group while Instagram is more catered to millennials, targeting these two groups can be effective.
Build the Hype
Doing a PR when a crypto company launches a new service or product can make you stand out and will attract customers.
First Mover Advantage
The Internet is full of trends and new things. The company that foresees the future and makes things available at the right time gains the first-mover advantage and attracts a large piece of the crowd. Being late on the internet world will make you lost.
As everybody knows, crypto investors are highly active on social media platforms. Followers look up to influencers for updates and more knowledge, targeting these influencers and making them promote your company can be a big step.
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Take Benefit Of SEO
Everything starts with a search, and if you want your product to be displayed on top whenever a person searches about crypto you have to maintain a strong SEO connection. There are thousands of searches that happen every hour for crypto and if you catch just a fraction of this you are already one step ahead of others.
It is a crypto marketing strategy where companies give free crypto tokens whenever a person logs in to their portal or takes their services. People love free things and will tell about this to more people, attracting a large number of crowds to the website.