Earn Phenomenal Rewards by
Yield Farming
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Like staking, yield farming allows users to provide their crypto to exchanges or decentralized applications for a period of time and in exchange receive rewards, based upon the time their cryptocurrency is locked away for.
Your cryptocurrency will be put into a liquidity pool within the exchange or decentralized app and will be used to carry out transactions or enable swaps between currencies by traders on the platform.
Over time, the pool will collect fees from users instigating swaps and transactions. Portions of the fees will then be distributed to those who have contributed to the pool.
Returns in yield farming are often expressed as APY (annual percentage yield) and these APY can be anywhere between 5 and 1000% which makes yield farming an incredible opportunity to earn passive income.
As with all crypto investment strategies, there are risks. Yield farming with an unestablished coin where the creators exit the project early leaving the coin worthless is common.
Additionally, all crypto markets are volatile, meaning impermanent losses are possible following a large swing in the value of the seed coin. There is also the potential for wallets and smart contracts on decentralized apps to be hacked, meaning all coins are gone.
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