**Farming in DeFi: your cryptocurrency working for you**
Tired of leaving your crypto asleep in the wallet? Farming is basically lending your coins in exchange for profits.
You deposit into a liquidity pool → other users borrow or trade with your crypto → you receive rewards (transaction fees + extra tokens).
It's like having a piggy bank that generates money while you sleep. Banks give you 0.5% annually, DeFi offers you 10%, 20%, up to 50% depending on the pool.
**But beware:** The price of your crypto can plummet (impermanent loss), and there is always a risk that the smart contract may fail. Farming is not free; it is exchanging volatility for profitability.
Moral: if you understand the risk and have an emergency fund, it may be worth it. If not, it's better to stay away.
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**Farming in DeFi: your cryptocurrency working for you**
Tired of leaving your crypto asleep in the wallet? Farming is basically lending your coins in exchange for profits.
You deposit into a liquidity pool → other users borrow or trade with your crypto → you receive rewards (transaction fees + extra tokens).
It's like having a piggy bank that generates money while you sleep. Banks give you 0.5% annually, DeFi offers you 10%, 20%, up to 50% depending on the pool.
**But beware:** The price of your crypto can plummet (impermanent loss), and there is always a risk that the smart contract may fail. Farming is not free; it is exchanging volatility for profitability.
Moral: if you understand the risk and have an emergency fund, it may be worth it. If not, it's better to stay away.