For a few months, I was inactive on publish0X so I literally missed the farm revolution that changed everything. The fact that I was in the blind about farm till a few days ago is both good and bad- good because I can approach this article from that standpoint, which will help my readers understand better. Bad because I missed my chance at making some money. But better late than never.
When I first heard about Yield farming, I tried reading articles and opinion pieces on P0x . At first, I was not able to grasp anything. A few days ago I saw a friend's wallet, a friend who Invited to the crypto world. His wallet surprised me. He literally had 4 times the amount that I ever made from crypto. Like any human being, I started looking into yield farming more seriously.
Imagine yourself as a youngster with not a huge wallet, you will probably a newcomer to yield farming.
For the sake of numbers, let's say you have $150 in ethreum.
Now imagine you wish to start a new farm- You need to select the following
- Your field-Like agricultural farming, the field for cultivation is an important factor as it directly affects the yield.
- Your crop-You need to select the crop you wish to cultivate, you can choose a single crop or multiple ones.
- Season- You have the crop and land, you should plant it in the right season so that you can take yield at the right time.
Since the amount you can spend is capped at $150 in eth there is not much room for mistakes. Since the gas fees are too high our choice of the crop should be by taking into account all the factors.
Like cultivating the right crop at the right time you should be using the right cryptocurrency. I would say the best bet here will be a stablecoin as its price fluctuations are negligible. A factor that every yield farmer sees will be the APY. Some crops might have very high APY but it comes coupled with a risk factor.
If you are OK with the risk factor the best bet will be FARM itself. I still remember the price of this token at around $90 and today it's in the range of $240.
Harvest farms highest yields with the deposits from the investors. 70% of the profit goes to the depositors and the rest 30% goes to users who stake FARM in the profit share pool
If you wish to go with a stable coin, I will suggest DAI (you can cultivate and take yield from any token). You will be getting fDAI, which can be exchanged whenever you want. The main benefit of staking FARM in the FARM pool is that you get a share of profit from all pools in the form of FARM.
Why should you go for yield farming rather than holding your asset?
yield farming is not your day to day trading, it's actually like a lock-in investment. Imagine your ethreum (or any other coin) as an expensive seed. Why would you hold on to the seed if you can sow it and technically double your money? Harvest finance works with AUTOCOMPOUNDING. This literally means that whenever you get some farm it comes with something like a bonus.
I Like taking risks, especially because I haven't spent a penny buying cryptos. So the thought in my mind will be like-lets try it ,if you loose imagine you never had the money. The risk and the flashy APY makes me select the FARM profit share pool.
HOW TO DO IT?
Like I told I have my money in different coins, so what I need to do will be to swap them for $FARM. which as of now is a very good Idea as $FARM is experiencing something like a bull run.
Now that I have the wonder token it's time to stake them. Go to the harvest Finance website and choose the farm pool.
This pool has an APY of almost 76%, even though it is subject to fluctuations this is a good bet.
Stake your farm and get your profits.
As I am finally choosing to farm $FARM, it is time for a conclusion.
- $FARM is a promising token
- A promising APY of 76%
- Profit shares from all pools
WHO IS THIS STRATEGY BEST FOR
I would say to anybody, to a beginner, whale, bull, or an expert. Provided that they can keep it staked for a particular amount of time. It will be very ideal if you already have $FARM
Of course, $FARM is an ERC-20 Token. The ethreum gas fees can sometimes carve out your profit.
There are pools with APY of up to 790%, but you should choose your strategy wisely. I have suggested two strategies here. The effectiveness of any strategy gets partially impaired by the unbelievable ethreum gas fees.
I wrote this as an entry to a competition. And if I win some farm you can guess how I will use it.