Earn Passive Income with Crypto Pt. 3: How Exchanges Use DeFi to Trap Your Funds
Welcome back to part 3 of this series on earning passive income with crypto. In this video, I’ll be covering how exchanges use DeFi to trap your funds.
DeFi, or decentralized finance, is one of the hottest trends in the cryptocurrency space right now. It’s a way of leveraging blockchain technology to provide financial services without the need for a centralized third party.
At first glance, DeFi seems like a great way to make money. However, there’s a dark side to DeFi that many users are unaware of.
Most exchanges use DeFi protocols to trap your funds. They do this by using a smart contract that locks up your funds for a certain period of time. This means that you can’t access your funds until the contract expires, even if you want to.
Exchanges also use DeFi protocols to manipulate the market. By locking up a large amount of funds, they can artificially inflate the price of certain tokens. This gives them an edge over other traders, as they can buy low and sell high.
The key takeaway here is that DeFi is not always a safe way to make money. If you’re going to use DeFi, make sure you understand the risks and take steps to protect yourself. Otherwise, you could find yourself stuck with a large amount of funds that you can’t access.
Thanks for watching! If you enjoyed this video, make sure to check out the rest of the series.
