HOW TO MAKE $5,000 - $6,000 IN 5 MINUTES IN CRYPTO WITH DEFI (A FOOL-PROOF METHOD)

I often find myself asking questions about money, especially when it comes to DeFi.

Is it possible to earn income passively from DeFi despite not knowing anything about tech?

That's the aim of this article and I'm going to break it down and explain everything that even a 5-year-old will understand and start earning.

HOW TO MAKE $5,000 - $6,000 IN 5 MINUTES IN CRYPTO

What is DeFi?

DeFi, short for decentralized finance, is a revolutionary concept that combines the power of decentralization and finance. By sharing power and control among multiple local offices instead of a single central authority, DeFi aims to transform the traditional financial system.

Decentralization, in this context, means distributing power among several individuals rather than concentrating it in the hands of a few. It enables a more inclusive and democratic financial ecosystem where decisions are made collectively.

On the other hand, finance refers to the management of large amounts of money, typically handled by governments, banks, or large corporations. DeFi disrupts this traditional model by taking the management of money and financial transactions away from centralized institutions and placing it in the hands of individuals like you and me.

The beauty of DeFi lies in the earning opportunities it presents. By participating in this decentralized system, individuals can access various financial products and services that were previously exclusive to banks and governments. Tech-savvy individuals, in particular, have been at the forefront of this movement, but the potential for anyone to earn passive income is significant.

However, it is crucial to acknowledge that with great power comes great responsibility, and DeFi is not without its risks. In this article, we will explore how to navigate these risks by following certain guidelines.

Before we dive in, let's take a moment to imagine the possibilities. Consider the potential of earning consistent monthly returns of 5-10% on your invested capital over a period of 10-20 years. The prospects are indeed exciting.

Now, let's delve into a specific technique within DeFi that has the potential to generate substantial daily earnings—liquidity pool arbitration.

Liquidity pool arbitration combines the principles of liquidity, pools, and arbitration. Liquidity refers to the ease of converting an asset into cash without impacting its market price. In DeFi, liquidity pools are decentralized platforms where individuals contribute their crypto assets, such as Ethereum (ETH) and Bitcoin (BTC), to facilitate trades on decentralized exchanges (DEXs).

Crowdsourcing plays a crucial role in DeFi, as these platforms gather assets from a diverse and evolving group of participants. However, with the crowd-sourced nature of liquidity pools, disputes may arise. Yet, as the saying goes, every problem presents an opportunity.

This is where you can step in and profit from the situation. By identifying imbalances in liquidity pools—such as when one asset dominates the pool—you can strategically execute trades to restore balance. For instance, if the pool has 51% DAI and 49% AVAX, you can trade AVAX for DAI to achieve a 50/50 distribution.

While manual trading has been prevalent, automation is quickly emerging. Bots powered by data science are being developed to track human behavior and automate the arbitrage process within DeFi platforms. This convergence of data science and blockchain technology opens up unprecedented possibilities for profit.

Liquidity pool owners receive a percentage of transaction fees

Please note that this article aims to educate and inform, but it's essential to exercise caution. I am not a financial expert, and investment decisions should be made based on careful consideration of personal circumstances and risk tolerance.

As we progress, it's important to emphasize that every network has its unique liquidity pools. For instance, the AVAX-DAI LP pool combines the Avalanche platform, which offers decentralized finance applications and services, with DAI, a decentralized stablecoin pegged to the US Dollar.

Liquidity pool owners receive a percentage of transaction fees when users trade between AVAX and DAI. As trading activity fluctuates, imbalances may occur in the pool, creating an opportunity for you to restore equilibrium and earn a profit.

During my observation, I have noticed these patterns emerge across various platforms during periods of lower activity. While I cannot provide screenshots of specific earning results, I assure you that these opportunities exist.

In conclusion, DeFi presents a paradigm shift in the financial landscape, empowering individuals with earning opportunities previously reserved for institutions. Through techniques like liquidity pool arbitration, you can leverage the power of decentralization and data science to generate significant profits.

Remember, engaging in DeFi carries risks, and it is vital to approach this space with diligence and an understanding of the potential downsides. Nonetheless, with careful consideration and adherence to guidelines, you can navigate the world of DeFi and unlock its immense potential for passive income generation.

Disclaimer: The information provided in this article is for educational purposes only. It should not be considered as financial advice. Please consult with a qualified financial professional before making any investment decisions.

One more thing to take note;

Based on simple maths, it doesn't benefit you to do arbitrage with anything less than $3,000 because .1% = $3 minus gas fees = $0.50 = $2.50 profit if you only have $3K.

The testing of this technique was carried out with $500K.

The money was crowd funded by 500 persons with an individual investment of $1K thereby generating $500K

Based on this technique, $25K is made daily in profit multiplied by an average of 20 days in a month.

$500K is generated in a month and shared amongst the testers

External investors not among the beta testers are brought in to share the profit with an interest of 8% -12%.

These opportunity windows last for maybe 2-3 minutes and there's multiple exchanges to check in order to take advantage of them

This is why I always ask myself, "What exactly is money?"

Knowledge is indeed power!

#REXBOX #DEFI #crypto2023 #ARbitrum #DIA

$1INCH $AVAX $BIFI