Passive income with crypto yield farming in Indonesia

yield farming

'Don't just work for crypto; let your crypto work for you.'

Do you know there are ways you can generate passive income with your cryptocurrency?
Don’t worry; I know how you can make passive income with your bitcoin throughout the year in
Indonesia and anywhere globally.
Most Cryptocurrency holders sit on their coins in the bitcoin exchange and don’t know what to
do with them. Anytime you login bitcoin wallet and see your cryptocurrency sitting down there.
You are thinking of a way possible ways to earn more profits from this cryptocurrency. One way
to earn income from your crypto is Yield farming

What is crypto yield farming?

Yield farming is when you lend or stake your cryptocurrency in a smart contract-based liquid
pool in exchange for governance tokens and interests. The governance token is issued to you
by the company that owns the pool as a reward for staking your cryptocurrency in their pool.
The token can be used and exchanged for another cryptocurrency in different exchanges.
You might be wondering how profit is made?

Liquidity Mining

There is something called liquidity mining. Liquidity mining is when you as an investor have two
tokens (Ethereum and Usdt) currently in high demand. You take both tokens to the liquidity pool,
acting as a liquidity provider. Traders can swap different cryptocurrencies on the decentralized
exchange and for a transaction fee. The pools pay you out of the transaction fees charged.
Also, you get to choose which token you would like to receive your rewards. In our case, let’s
say ethereum. In addition to the ethereum interest, you get as a reward for staking your coin.

Decentralized Crypto lending

Also, with DeFi, you can lend people your cryptocurrency and, in return, get an annual Pay
Yield(APY). The lending company issues the APY within a period. You give your money to a
Defi and let them lend out your money to investors.
As a yield farmer, you can also lend your cryptocurrency to a Defi platform like COMP AND
AAVE. The company lends your cryptocurrency to traders who trade back and forth with your
cryptocurrency. The traders are to pay back with interest. The company then pays you out of the
interests they’ve made.

The risks involved

For one thing, there’s theft in addition to regulatory crackdowns. The digital money you lend is
kept effectively by software, and hackers constantly find new methods to attack code
vulnerabilities and steal money. Some of the coins users are depositing for yield farming are
only a few years old at most, and they might lose value, leading the system to crash.
Furthermore, early investors frequently own substantial amounts of reward tokens, and their
decisions to sell might significantly influence token pricing.
Finally, regulators have yet to decide whether incentive tokens are or may become securities,
significantly influencing their use and value.

CONCLUSION

Now that you know how much profit you can make as a yield farmer and the possible risk
involved. I’ll advise you do more research before putting your money in any liquidity pool. You
can check out rugdoc and see reviews about different liquidity mining pools.

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