Today we are going to look into one of the best strategy to earn cryptocurrency through harvest finance. This strategy has been designed by a lot of research and if we follow it correctly then we can get a good outcome from this scheme. First let us understand what is a Defi protocol.
What is a Defi protocol ?
Defi refers to Decentralized Finance. It is a form of finance which is not controlled by any central authority. Instead it runs on blockchains through smart contracts with a high level of security. Each day the number of Defi platforms are increasing and investment in these protocols are rising. This is because people are making really good profit from these platforms. But if we want to make use of it then we should have a clear strategy. The strategy which I am going to share with you is made by analyzing the market and the trend. Now let us understand why we are investing in Harvest Finance.
Why you should use harvest Finance?
There are a lot of the Defi protocols available in the internet. It will be very difficult to find the best one which will give you high returns. Also it is a tedious task to find the latest projects manually. This is why we are mainly using harvest finance which will automatically find and present the best Defi protocol available for a particular token. They have brought together all the projects at one place. They have also pooled their funds in order to reduce the gas fees. When we deposit in harvest finance it will automatically farms the highest yield and gives depositors 70% of the profit and the rest 30 % is used to buy FARM tokens.
When you possess a particular cryptocurrency it won't bring you any good unless its price increase. That is why most of the paper are staking their cryptocurrencies. We are applying the same mentality here through Harvest Finance.
"If you don't find a way to make money while you sleep, you will work until you die."
- Warren Buffet
What is the strategy?
The strategy which I am going to share with you guys is for complete beginners because many of you may not have used harvest finance before. The pair which we are going to use is FARM/ETH. It is in the Uniswap liquidity. I am actually very much fascinated about FARM tokens. Its price has been increasing steadily. we will see a huge increase in the price of farm tokens in the future because of all the functionality it has. Investing in farm tokens can give you high returns in the upcoming months.
FARM/ETH has a harvest API of112.96% and has a total deposit of $11.33M. This shows that its having a decent volume in terms of deposit and good returns. Its liquidity is also increasing.
How much profit we get?
I am writing this article mainly for beginners. So I guess most of you will be having a small capital in order to invest here. So let's suppose you are having $500 to start with. The amount which you can earn as profit is around $345 in just one year which is good. This is just an approximate figure as calculated from the profit calculator available in harvest finance website. But I hope that the price of a Farm tokens is going to increase in the upcoming months and therefore we can bag a lot more profit from this capital. So I request you to HODL your tokens. The amount you staked is auto compounding which means that the interest is calculated from what you have staked at the beginning plus the interest you earned till then.
I am suggesting this strategy mainly for beginners because their risk involved in this scheme is very less and therefore you will not lose your capital. Also keep your tokens for long-term because the farm token is being recognized by a large section of people around the world which will push its price.
Let us look in depth about FARM tokens ?
Farm tokens are developing day by day in terms of both volume and market cap. Currently it has rank of 200 in Coingecko. It is listed in a number of exchanges in which Uniswap and Gate.io has currently the most active trading in FARM. The total supply of FARM tokens is 492K and it has a circulating supply of 460K.
As I did mention about, a part of the profit share is used to buy FARM tokens which will ensure that the price of FARM tokens won't go down. Also when more people come to know about harvest Finance the popularity of FARM of tokens are going to increase which implies its price will also rise.
If we look at the graph of FARM for the last for 14 days we can understand that the trend is always increasing. So this is the best time to invest your money in FARM and book your profit for the future.
How to start?
1. Go to Harvest Finance website.
2. Click on Dashboard at the top.
3. Click on 'Connect Wallet' (You need to connect a web3 wallet. eg: Metamask )
4. Fund your wallet with FARM tokens ( If you don’t have then you could buy it from Uniswap).
5. Click on farm at the top.
6. In Uniswap liquidity category choose FARM/ETH.
7. Enter the amount of FARM and click stake.
8. You are done. Now wait patiently to earn your share.
I hope you will get a good profit from this strategy. If you have any queries regarding harvest finance please feel free to ask it in the comments section. I will try to reply to it as soon as possible.