How to Earn with DeFi?

[Tine0313 3053]

Before we start, let's define what is "DeFi" is, basically it is short term for “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. DeFi draws inspiration from blockchain, the technology behind the digital currency bitcoin, which allows several entities to hold a copy of a history of transactions, which means that it isn’t controlled by a single, central source. That’s important because centralized systems and human gatekeepers can limit the speed and sophistication of transactions while offering users less direct control over their money. DeFi is distinct because it expands the use of blockchain from simple value transfer to more complex financial use cases.

So, here's the question. How can we earn with DeFi?

When DeFi was launched there is a number of ways through which investor can earn. The main purpose of providing these platforms and products is to deliver liquidity in the DeFi space unlike CeFi, it is easy to get into. 

The products that DeFi provide for an investor to earn  income are the following:

1. Yield farming - is staking cryptocurrencies in order to get a reward. This Defi product is similar to the bank deposit or fixed-term deposit on which you earn interest. Instead of just holding cryptocurrency stake it to earn interest over them. Not only you can generate income from the already held crypto but also yield farmers borrow crypto from others and earn income over them. This is very profitable when the interest rate favors the borrower. The main purpose behind Defi yield farming is that individuals can earn tokens in exchange for using DeFi application. It is also known as liquidity mining.

Yield farming enables you to earn tokens on investment and then you can put these tokens to liquidity pools to earn rewards in there. The return that a yield farmer can earn are capital growth which can be an asset, fees, and reward; token rewards and transaction fees.

2. Liquidity Mining - it means that to join a network participation strategy in which an investor provides capital to a protocol in return investors receive tokens. The different token is provided by different protocols. It is also the 2nd step of yield farming. After receiving the token you can invest them in the liquidity pool by an Automated Market Maker (AMM). Once you identified the liquidity mining pools that accept your specific tokens, then stake your token in order to get incentives from it.  Liquidity pools provide you with a better yield in the money market. However, the risk is greater in liquidity pools but it provides greater reward.

The decentralized financial technology is innovating itself to a more efficient and effective automation. Bear in mind that there are a lot of risk underneath it. Avoid unaudited protocol and don’t invest a large amount of money and do some intensive research first and scrutinize each information on the protocol before investing in it.

[Ridam 7455]

De-Fi provides good opportunity for hodlers of some token. If we are holding for the pump it's better to invest in De-Fi product. Personally I am providing liquidity in Justswap in some pool and I'm earning passive income through it. Though the percentage is small but it's better to get some profit than only Hodling it in my opinion.

[bitcoin-shark 1928]

the new defi sites are a great opportunity to earn with cryptocurrencies in yield farming you have to pay attention to the transaction fees which can be very high I use compounds for this, for liquidity mining you have to provide, make available two different altcoins / tokens here you have to pay attention to the impermanet loss and do the math very well and see if it is really convenient to make this type of investment I use uniswap

[Dark Shadow 295]

@Tine0313 You have created a very informative topic my friend. I am sure a lot of people will benefit from it. You are right that yield farming and liquidity mining are great ways to earn using Defi. I personally haven't tried either of them. I am sticking to trading for now but I might try these in the future though.

[tienda 8776]

15 hours ago, bitcoin-shark said:

the new defi sites are a great opportunity to earn with cryptocurrencies in yield farming you have to pay attention to the transaction fees which can be very high I use compounds for this, for liquidity mining you have to provide, make available two different altcoins / tokens here you have to pay attention to the impermanet loss and do the math very well and see if it is really convenient to make this type of investment I use uniswap

Yes DeFi is the best opportunity we should approach their first offers of promotion, because I see that this project will be a bright future project for a long time. They offer a lot of opportunities to hold some tokens. But yes @bitcoin-shark you are right there is an obstacle with higher gas fees, I think because of a lot of transaction and slow confirmation making higher gas fees.

[MuhammadSh 3067]

There were many defi cryptocurrencies projects were really profitable and attracted in the last period as i have noticed!.. and the earning defi field are really attracted for many people and that's what makes this project special in my opinion! but unfortunately , there area many scam defi projects and that's what makes the reputation of defi projects isn't good enough..  we should be aware and keep our eyes on defi projects because some of them may have a good future especially because the prices of some of them are really high!

[Mubiflow 1771]

On 11/14/2020 at 9:36 AM, Ridam said:

De-Fi provides good opportunity for hodlers of some token. If we are holding for the pump it's better to invest in De-Fi product. Personally I am providing liquidity in Justswap in some pool and I'm earning passive income through it. Though the percentage is small but it's better to get some profit than only Hodling it in my opinion.

Thank you for this information I don't really really understand how I can earn with justswap I tried using it in my tron link wallet but end up loosing some coin but think its due to the fact that I don't know how use it. I have invested in De-Fi but the site use after some weeks the thing stopped working that I couldn't asses the site again that was how I get scammed through telegram

[Joseph J 608]

 Thanks for the info. that of the decentralized Defi are something new for many hopefully and bring us new applications with the Defi next year. Currently the fees under that Ethereum network are somewhat expensive but the most economical I recommend using is the (Binance Smart Chain) network.Now there are several ways to earn with the DeFi just providing liquidity and yield farming, I am trying with UniSwap.

Good luck to everyone with DeFi.

 

[joyeetamedia4 7]

Get ETH into a location that you basically guarantee. As the platitude goes, in the event that you don't hold the private keys to the wallet, by then they aren't your coins. ... Head to DEX.AG and offer the vast majority of that ETH for DAI. ... Go to DeFi Heartbeat's Success Pay page. ... Pick an advancing show, and start winning fascinated.

[JesusFries 1958]

DeFi Projects really offers a lot to its potential investors and this is why there are a lot of people who were scammed with these fraudulent DeFi Projects. It is really important that you shuld be knowledgeable enough before deciding to go in this path. Surely, these projects may sound profitable but always make sure that these are legitimate since there are scammer and fraudulent users out there. 

[DS#SAQii 1114]

There are so many different ways of earning at defi. Defi has a great potential for the investors. It is a great opportunity for those who want to increase their working capital. But the technology is still new and you should be aware of negative consequences. Also stay alert about the fraudulent defi platforms.

[Simon London 1749]

I am a big fan of decentralized finance projects, I see enormous potential to change the entire financial system, the data speaks for itself, decentralized finance projects do not stop growing.

There are several ways to earn with DeFi, but one of them is the use of loan platforms, they are very good at making money using DeFI, they allow us to store our cryptocurrencies and offer us options to earn interest according to the amount of cryptocurrencies that we have stored.

[nykas 2812]

The most earning comes from fees, which part you can get by providing liquidity on different decentralized exchanges. Moreover you also can earn on price moving, DeFi coins like common crypto is very volatile and when you know the right time for buying and selling, you can earn a lot. Also some coins have staking opportunity, where you can earn some little percent too. But it`s quite impossible to earn on DeFi without own capital 

[Shubham kakade 556]

Making money on Defi its not hard 

Start making on money on Defi in 4 steps  you are familiar with ethereum these steps will only take few minutes 

1. Get ETH into an address that you own 

2. Head to DEX.AG and sell most its that ETH for DAI

3. Go to Defi pulse Earn income page 

4. Pic a lending protocol and start  earning interest 

And then later when your ready to cash out 

I am posting only points you can research in deep and study 

[MrSpasybo 1049]

DeFi is an entire crypto economy, not just projects that run on liquidity pools, so we can make money in many ways:
- invest in ICO/IEO and receive a profit when the token price goes up;
- invest in STO projects to receive project profits;
- trade on exchanges, get a profit;
- participate in bounty campaign, receive tokens;
- participate in consulting or supporting projects to receive tokens;
- lending on platforms, earning profits;
- put money in liquidity pools, get profits ...
- operates on 1 platform, providing 1 service (education, transportation, health ...) for profit.

Those are the simplest methods we've seen, and more if crypto is more widely adopted.

[MoyenAli 60]

Defi is great platform in cryptocurrency. Defi means  decentralized finance. For exchanges cryptocurrency depend on defi.There is many ways to earn with defi.Basically it has 4 way to earn with defi. 

[Rozy 1918]

hello I was wondering is it safe to keep the cryptocurrency just building up? is not there a danger that we might lose it for any reason maybe a hacker or a scam. isn't it better to cash it . furthermore how the profit percentage is calculated can we ask for what we want or we have to accept what is offered.

[Kanivar 7]

It is a method where you can earn money other than trading your cryptocurrencies or keeping them in your wallet and saving them.

 Users are able to open more positions with a lending contract than they have.  In addition, they can open a non-contract position by borrowing.  They can do this through coins that are lending by others.

[nykas 2812]

I would also add tokens price change. DeFi tokens are like common tokens, so some people speculate and earn on their price changes. For me, Yield farming is the best way, because in most cases I can stake popular coins and get some new tokens. Providing liquidity is more dangerous for me 

[Talha 0011 114]

Defi is a very and useful platfrom in this cryptocurrency. It means rhat decentralization  finace. But its very difficult for unknown person. But it is so easy for educated person..  I also like it. And its very helpful

[Maaz sultan 265]

On 11/14/2020 at 1:36 PM, Ridam said:

De-Fi provides good opportunity for hodlers of some token. If we are holding for the pump it's better to invest in De-Fi product. Personally I am providing liquidity in Justswap in some pool and I'm earning passive income through it. Though the percentage is small but it's better to get some profit than only Hodling it in my opinion.

That's good something is better than no think earning small in starting is start to earn big in feature . And as for defi it is totally depend on your luck .

[Zohaibkhizer 466]

From defi making money is not hard. It takes only four steps to earn from defi so you get amazing exchanges daily

[muhammet güray hut 67]

You have created a very informative subject, my friend. I am sure many people will benefit from it. We should be aware of excellence projects and keep our eyes on them because some of them may have a good future, especially because of their prices. some are really loud!  ✅

[Anshamaraam 327]

There are some ways to invest and earn from defi projects or tokens ,but i am using pools liquidity and free airdrops.I also sometime buy at low price and sell it when goes hype.Thanks 

[iloveyobit 6599]

Yield farming

thanks for the topic , i really enjoyed reading the information but im interested more about Yield farming , can you try to explain it more to us by giving some examples please ? i would be thankful for you