NEXT LEVEL INVESTING
(NOT FINANACIAL ADVICE)
Earning Yield with Crypto
Earning Yield with Crypto
When one says they are "Earning Yield with Bitcoin," that means that they are earning interest using the Bitcoin they already have. You can do this, too!
When one says they are "Earning Yield with Bitcoin," that means that they are earning interest using the Bitcoin they already have. You can do this, too!
The interest you are paid is whatever asset you are generating yield with. For example, one may use Bitcoin they have, to receive rewards paid out in Bitcoin. There are a variety ways to make more crypto with your existing crypto:
The interest you are paid is whatever asset you are generating yield with. For example, one may use Bitcoin they have, to receive rewards paid out in Bitcoin. There are a variety ways to make more crypto with your existing crypto:
Lending/Borrowing
Lending/Borrowing
For lending - much like one can earn interest when holding a balance in a savings account at a bank, one may also do this with their cryptocurrencies.
For lending - much like one can earn interest when holding a balance in a savings account at a bank, one may also do this with their cryptocurrencies.
On the borrowing side, you could use your coin to borrow dollars which you can then use to buy more crypto, while paying interest to do so.
On the borrowing side, you could use your coin to borrow dollars which you can then use to buy more crypto, while paying interest to do so.
Borrowing can be used as a tax optimization strategy, please refer to the WOMANKINDCRYPTO Discord server for more information about this financial maneuver (not financial advice).
Borrowing can be used as a tax optimization strategy, please refer to the WOMANKINDCRYPTO Discord server for more information about this financial maneuver (not financial advice).
The options listed below are some of the most common providers of Lending and Borrowing cryptocurrencies:
Staking
Staking
Staking is the process of locking up your crypto to help secure the crypto network it's locked up on. You are compensated based on transaction fees and coinbase rewards in proportion with the amount one has staked.
Staking is the process of locking up your crypto to help secure the crypto network it's locked up on. You are compensated based on transaction fees and coinbase rewards in proportion with the amount one has staked.
Not all crypto can be staked - only coins that are secured using the Proof-of Stake mechanism (POS), can be staked. Many coins, like Bitcoin, use the Proof-of-Work mechanism (POW) aka "mining" to secure the network.
Not all crypto can be staked - only coins that are secured using the Proof-of Stake mechanism (POS), can be staked. Many coins, like Bitcoin, use the Proof-of-Work mechanism (POW) aka "mining" to secure the network.
The options listed below are some of the most common providers of crypto staking:
Providing Liquidity to a Decentralized Exchange Automated Market Maker
Providing Liquidity to a Decentralized Exchange Automated Market Maker
(DEX AMM)
(DEX AMM)
Because this can get rather in-depth, to simplify, we describe providing liquidity as: adding crypto to a liquidity pool so that one may receive a proportional cut of the trading fees, produced by that particular liquidity pool. This makes trading more efficient, which is why DEX AMMs reward you for providing your asset.
Because this can get rather in-depth, to simplify, we describe providing liquidity as: adding crypto to a liquidity pool so that one may receive a proportional cut of the trading fees, produced by that particular liquidity pool. This makes trading more efficient, which is why DEX AMMs reward you for providing your asset.
The options listed below are some of the most common DEX AMM services:
The options listed below are some of the most common DEX AMM services:
Trading Perpetual Futures Contracts
Trading Perpetual Futures Contracts
Trading perpetual futures contracts uses leverage to enable one to directionally trade (called a short for sell, long for buy) crypto assets in a capital efficient way using existing crypto as collateral. A perpetual futures contract is a type of product known as a derivative.
The options listed below are some of the most common perpetual futures trading platforms: