Top 3 Risk-Reward Yield Farming Platforms

There are many ways to earn cryptocurrencies. Mining remains one of the most popular methods, but it requires that you build a complex and expensive hardware setup. Trading crypto on an exchange is also a great way to multiply your initial investments, but it demands skill and experience to earn in the long term. However, there is also a relatively new method that has no skill requirements and a pretty low capital threshold: yield farming. In this article, we explain how it works and tell you all you need to know about the top 3 reliable platforms for farming.

How it works

Yield farming is a very popular application of DeFi algorithms. Basically, it allows you to invest tokens at interest by freezing them for a given period of time. This mechanism works just like bank loans: you let other people use your tokens for a while, and they give you a small reward in exchange. Instead of just keeping them isolated from the market, you provide liquidity to other traders, and that’s why yield farming is also called liquidity mining. The best thing about this mechanism is that you can really use it to make substantial profits by entering projects early on and mining promising coins.

However, you should be very careful about choosing your DeFi platform for yield farming. It should be secure, user-friendly, and profitable enough. To help you out, we’ve compiled a list of the most reliable risk-reward yield farming platforms on the market.

ByBit

This is a perfect option for beginners who want to understand how yield farming works. The exchange is very reliable, and it’s used by several millions of users. Its farming platform called ByBit Earn is one of the most novice-friendly and profitable among all similar services. ByBit is known to employ a really advanced security system that takes care of your funds.

Binance

One of the leading crypto exchanges in the world, Binance also has its own service for farming that is widely known for high rewards and flexible conditions: you can freeze your funds for a certain period of time or choose a product with shifting time limits. All in all, it’s a good choice for aspiring investors who don’t want to freeze their money for long.

Huobi

Huobi Global has its own service for earning passive income in crypto. Huobi Earn allows you to farm different types of crypto without investing too much at once. But don’t forget that you need to pass the verification process to start investing.