TradFi

What is TradFi?

TradFi, short for "Traditional Finance," includes the financial systems we've known for ages - banks, stock exchanges, and other familiar institutions. These entities rely on well-established procedures and regulations to manage everything from savings and loans to investments.

What Does TradFi Mean in the Crypto World?

In the crypto world, "TradFi" is used to refer to the traditional financial systems and practices that cryptocurrencies and blockchain technologies are transforming. Crypto users often use this term to highlight the differences between the traditional and digital financial landscapes. While TradFi relies on established institutions and regulatory frameworks, the crypto world offers decentralized and innovative solutions, providing a fresh perspective on financial transactions.

How to Use the Term 

• Example: "Crypto enthusiasts often compare TradFi to DeFi when discussing how blockchain technology is changing the financial game. TradFi represents the traditional systems, while DeFi showcases decentralized alternatives."

This example shows how "TradFi" is used in discussions to contrast the traditional financial systems with the innovations brought by cryptocurrencies and blockchain.