Important Ways To Earn In The Cryptoworld #003

jueco (76)in Tron Fan Club • last year

Hello crypto friends,

It is another day to learn various ways we can earn from cryptocurrency and I am sure everyone wants to know how to earn from cryptocurrency.

With that In mind, I will love to ask about the welfare of every member of this group, I believe you are all doing great, and we are actively supporting twitter promotion in our great Community today.

In our last discussion, we learnt ways we can earn from cryptocurrency but due to the bulkiness of the topic, we couldn't finish up and we later divided it into parts.

We shall be considering a different part, please followup as we begin:

YIELD FARMING:

Yield farming which is some times called liquidity mining can be explained to be a process whereby users earn rewards in a decentralized finance by providing liquidity to decentralized platforms.

Yield farming has to do with the staking and lending of cryptocurrencies in decentralized exchanges, decentralized lending protocol and other available defi platforms.

To perform yield farming you need to first of all search for a platform with yield farming opportunities. And some of these platforms include sushi swap, uniswap and they function on blockchain like ethereum.

After selecting a platform, then you can proceed to provide liquidity on the platform by locking up your cryptocurrency in smart contracts.

These smart contracts automatically enforce terms of agreement, thus removing the need for a third party.

When you become a liquidity provider in the defi protocol, you earn tokens representing your share of the pool.

These tokens can be traded, held and used in participating in other activities in other defi platforms, and these tokens are known as "LP tokens".

The rewards given in yield farming is directly proportional to the liquidity you provide and this implies that the more liquid you provide, the more reward you earn.

NFTS:

The creation of nfts is another legitimate means to earn from cryptocurrency.

I need not speak much about nfts because we are familiar with nfts in tron-fan-club community.

Nft which is known as Non-fungible tokens can be explained to be a type of digital asset which represent proof of authenticity or ownership of a piece of content such as musics, artwork,videos etc.

Nft are Non-fungible because unlike other digital assets, nft are not divisible, they are unique.

Nfts are usually built on blockchain technology and it's scarcity and uniqueness is what place value on them.

By creating a very unique nft, one can make passive income when his nft is sold in the nft marketplace.