A lot of people are trying to learn how to make yield farming on pancake swap and so far, there have been those that have been successful and those that haven't been too successful. Now, how does one earn passive crypto income?
NFT Games and Yield Farming
There are a number of ways for people to earn in cryptocurrency and the most popular of these are trading, investing, or even playing NFT games. With the popularity of NFT games, more and more people are starting to explore the vast world of crypto.
Yield farming or staking is the process of leaving one's money for a period of time and getting returns on the investment. There are platforms like PancakeSwap that allow investors to stake money, leave it for a while, and basically sit pretty and enjoy the yields they earn.
There are different ways to earn through yield farming, here's a way to make the most out of your investment:
1. Add to the liquidity pool
The first thing that the investor can do is to put their money into the liquidity pool. Their investment can then either be automatically reinvested in the pool for the rewards to multiply or the yield earnings can either be farmed or added to the syrup pools.
2. Stake crypto and farm
When farming crypto, you can either use your earnings from the staked liquidity or put another investment. When looking for the right cryptocurrency to stake into, make sure you do your research. While the top 10 cryptocurrencies present less risk, they also offer smaller returns. Higher risk cryptocurrencies would mean higher rewards.
3. PancakeSwap Syrup Pools
The syrup pool works just like the farm where investors can also stake their money and earn an annual yearly yield from their investment. The earnings can then be reinvested automatically where the investor can withdraw when they feel like pulling a portion or the whole investment out.
Yield Farming on PancakeSwap
For those interested in learning more about how to yield farm on PancakeSwap, check out this YouTube video and learn more. PancakeSwap is not the only platform that investors can invest in to earn interest.
It is still important for investors to choose which coins to stake. Although some NFT coins are available to invest in, usually giving high yields, they might not always be that secure as more secure coins.
One more sustainable investment is yield farming stablecoins at an average of around 10% per year which is usually higher than most investments. Since stablecoins usually copy the cryptocurrency's main value and are parallel to the dollar, these investments would provide a more stable investment for the yield farmer.
Of course, there are also other options like Ethereum and other popular cryptocurrencies. It is important to have the right coin to stake and earn the right cryptocurrencies.
This article is owned by Tech Times
Written by Urian B.