đ°Today we will touch on methods of passive earnings in crypto. Let's get started! We will talk about such methods as farming and steaking.
đIt is worth saying that for proper earnings you should have a good bank and learn to choose reliable sites with good APR/APY. Don't forget about hacks, compare all risks and don't invest all your money.
đ§At first many people may not understand the difference between APR & APY, we will tell you everything in simple language. APR is the annual percentage rate, for example, you invest 1.000$ in an Asset with 15% APR. So in one year you will have $1,150, in two years $1,300, etc.
đąAPY is the annual percentage yield, compound interest, which is immediately added to the body of the investment. With the same 15% you will earn much more, but the interest differs depending on the accrual period.
đąAlso, don't forget about TVL (Total Value Locked). This is a metric that can be used to determine the amount of locked cryptocurrency on the platforms. The more such assets, the higher your returns will be.
âĄïžLet's get to the main point.
đFarming is one of the main advantages of the DeFi sector. In simple words you take one asset, add another one and place them for farming in order to get tokens from the protocol. Typically used to attract and retain users.
đStaking is analogous to rewarding miners. You invest coins and get rewarded by the network itself. In simple words, payment for work and maintaining the stability of the network/protocol.
Do you use methods for passive earnings in crypto? Yes or No
