Decentralized Finance (DeFi) has revolutionized the cryptocurrency landscape, offering unprecedented financial services without traditional intermediaries. However, interacting with DeFi protocols requires careful consideration of security practices, especially when using hardware wallets to protect your assets.
Understanding DeFi Risks and Rewards
DeFi protocols offer attractive yields and innovative financial products, but they come with unique risks including smart contract vulnerabilities, impermanent loss, and protocol governance risks. Your hardware wallet provides excellent protection for your private keys, but it cannot protect against these protocol-specific risks.
