The rise of decentralised finance (DeFi) has transformed how people use and interact with cryptocurrencies. Before DeFi, crypto was mainly used for trading, payments, or long-term investment. DeFi expanded this by allowing users to access traditional financial services, like lending, borrowing, earning interest, and trading- directly on the blockchain without banks or intermediaries.

DeFi platforms use smart contracts, mainly on Ethereum and other compatible blockchains, to automate transactions and enforce agreements transparently. This innovation gives users full control over their assets while reducing costs and processing time. It also opened the door for new income opportunities, such as staking, yield farming, and liquidity provision, which let investors earn passive returns on their crypto holdings.

Another major change is accessibility. DeFi allows anyone with an internet connection and a crypto wallet to participate, regardless of location or financial background. This inclusivity has attracted millions of users worldwide, particularly in regions underserved by traditional banking systems.

However, the DeFi boom has also introduced risks, including smart contract bugs, volatile yields, and scams due to the lack of regulation. Despite these challenges, DeFi has made cryptocurrency more than just a speculative asset; it’s now an entire financial ecosystem. By removing middlemen and giving users direct control, DeFi has redefined how money moves and grows in the digital age.