The world of cryptos gained a new trend with the appearance of decentralized finances, the ones that are pulling strength on Ethereum network and making investors earn from yield farming.
This tendency is a growing space and many people want to take a piece of it,which some times can also be dangerous as creditors aren't make enough research to put their money work from them and this reckless attitude can put funds in risk, so I recommend before any investment to make an exhausted research and evaluate the cos and pros and then decide.
Yield farming are stimulating users to put assets on decentralized finances protocols which could give a big revenue (also a big loss) and is necessary to know the best farms to grow your money and Coingecko website give a whole new space to find the best ones, find them here.
Investors are betting high on this farms as they can increase the users assets, for example the Uniswap exchange gives users the hability to farm and in certain pairs where creditors put money in, they could mine also the governance token UNI , which is good as the community could use the governance token to vote on proposals on the Dex exchange.
The Yield farming page on Coingecko have a lot of info that can help investors to choose the right farm to put money into and receive the benefits coming from that (earn fees from that trading pair user put money on, mine tokens..), to note that many of this pools where investors put money into aren't audited which can pose some risks from investments.
If you decide to put money on liquidity mining on the DeFi projects I strong recommend that act with careful and make own research always this protocols could make good income but also could make anyone lose so only put money into something that you believe and put the exact amount that you can afford to lose.
I personally think that this yield farming pools are efficient, when you have the right knowledge to bet on them, despite Holding the money into personal wallets could also make some big bucks giving liquidity on pairs on decentralized platforms with that earn from fees in that pair. I have my farm on Uniswap and I used the airdrop (sold 75% of the community reward) to invest in a farm that also gives me UNI tokens for giving liquidity to the Uniswap Exchange.
Of course that isn't just a thing a did with emotion I took any step to analyze that investment properly and after that research I decided to put that money working for me an in compensation I earn from fees and accumulate some UNI tokenshl knows how much gonna worth in near future, with now rounding in about $4,23 each!
Act with purpose and always DYOR (do your own research).
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Take care and have a wonderful Friday.
Nice article. Much information in your article.