CeFi stands for Centralised Finance. Using these services means you're giving custody of your crypto to a company. If the company goes bust/gets shut down/your account gets blocked, you could lose your crypto. In that way it's similar to traditional banking.
DeFi stands for Decentralised Finance. These services are non-custodial i.e. through the magic of blockchain you retain custody of your crypto — no third party is looking after it. You don't have the risk of a company going bust/getting shut down, and no company/government can stop you from accessing your crypto. Just don't lose your private key!
|Strategy||CeFi option (platform risk)||DeFi option (keep your private key safe!)|
|Just buy and hold BTC/ETH||
Buy BTC/ETH from one of the platforms on the left, then send it to a wallet:
|Buy an passive index||
Metastrategy is my new strategy on ICONOMI. It's an automated strategy with daily rebalancing that is always an intelligent mix of the current top performing strategies, and is thus a great set-and-forget option.
You could also invest in 3-5 of the current top performing strategies. If you choose this option I recommend you manually rebalance every 3-6 months (i.e. move your money out of any strategies that are now no longer in the top 5 and into the current top 5).
|Buy an actively managed portfolio/fund/strategy (read about active vs passive investing)||
These are all early stage and I haven't yet used them myself.
You could of course pick a mix of these different options. For example,
If you do choose to invest, consider dollar-cost averaging (investing regular small amounts) rather than going all-in.