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Farming is a big thing in the crypto world and the main goal we have is to make the most amount of money from the amount we farm, taking into account the risks and rewards. The BinanceFARMer contest is nearly finished, and I had planned to write this article earlier, but did not manage to start any earlier time! Anyways, with BSC farming on, I think I found one of the best ways to make the most of your crypto in a safe and potentially great rewarding way. You already know what it is from the title, but I will just say it. What I think the best way to farm on Harvest Finance's BSC is CAKE on PancakeSwap. I do not do farming on crypto but if I did, I would choose this option for my farming.
CAKE is a promising cryptocurrency and has gained a lot of popularity recently. I love the services PancakeSwap provides, which is arguably far superior to any other DeFi on the BSC, and I find that PancakeSwap has a good future ahead of it. There are so many different products on PancakeSwap, and to go through them all would be a pain. Also, you should already know what PancakeSwap is, being one of the top DeFis out in the crypto market. Some of the top services on PancakeSwap you should recognise include its exchange, yield farming and syrup pools. If you want to find out more about PancakeSwap, I recommend going through their documentation, which is very extensive and by the looks of it useful (click here).
Another great indicator for CAKE is its trends. I was supposed to write this article last week, but never managed to do so, and from then until now, CAKE has boomed up in price. I remember seeing it at around 20 USD, but now it is sitting around 27 USD at the time of this article. If I had somehow farmed CAKE last week, I would have made a 10% profit over the last week! That is incredible! Also, from the crypto crashes that have happened over this week, now would not be a bad time to begin going into CAKE, it falling along with many of the other big cryptocurrencies.
One more thing before I move on. All good cryptocurrencies have this healthy trend where it goes up and down over time. What I mean is that it boosts up for some time, then has a drop before rocketing even further up. You can see this on BTC, ETH and many other famous and reliable cryptocurrencies out, looking at their max time on some crypto market website (e.g. CoinGecko and CoinMarketCap). This trend is also in CAKE, and it is also much earlier in this trend, which is another good indicator to go into CAKE. If you look at the trend below of CAKE from CoinGecko and compare it to the one for BTC, you will see what I mean.
To put it simply, CAKE is a great cryptocurrency with a good future from its trends and projects surrounding the BSC, which is why I have chosen CAKE for farming.
Why Harvest Finance?
Now, you might be saying why should I farm CAKE on Harvest Finance, especially since I can farm CAKE on its native website PancakeSwap. You might be thinking I chose Harvest Finance because of the competition, and I would not argue with that. I originally did it because Harvest Finance was the focus of the competition, but it turned out that other benefits made it more favourable than PancakeSwap. Let's go through some of the main reasons why you should go with Harvest Finance.
The first and main one is its APY/APR, which just means its interest or amount you earn. On PancakeSwap, which you can see below, the APR is 93.10%. On Harvest Finance, its APY is 155.07%. That is a difference of about 60%, or 62.28% to be exact. That is a good deal of extra money.
The second reason, which is similar to the previous one, yet the difference in a way, is its rewards. With PancakeSwap, you only get CAKE, which you would expect for staking CAKE. But with Harvest Finance, not only do you get CAKE, but you also get another cryptocurrency called bFARM (BeeFarm). This is an additional reward for farming on the BSC through Harvest Finance, which opens out more opportunities on what you can do with your crypto. It is not much (19.82%), but is a great deal if you think long term, and it does not hurt to earn some extra crypto. Also, going back to the previous point, the APY I mentioned of 155.38% consists both of the bFARM and CAKE rewards. Just with the CAKE rewards, its APY is 135.56%, which is still a good deal.
The third reason is not that big of a deal, but I will mention it. I find that Harvest Finance is a better farming place than the farming service on PancakeSwap, being specifically designed for farming, nothing else. The interface is also much simpler and easier to use, though PancakeSwap's interface is still fantastic and great, it is just a personal preference for me.
The strategy is quite simple, and I have gone through it already before. Get some of your crypto, go to some exchange that lets you convert your crypto into CAKE, then throw that into the Harvest Finance farming pool, and you are done! With this section, I thought I would go through the potentials of the strategy to give you an idea of what could happen with this investment and why it is possibly a good idea to do it now, especially with CAKE on the rise.
For this example let's say that you are a small crypto investor and put in 1000 USD of CAKE into the Harvest Finance pool. Although I am saying "small," this amount is huge for me! But, comparing with other crypto investors who have hundreds of thousands or millions of dollars, this is where I get "small." Let's move on. You may get fees with the process of trading the amount into CAKE and putting it into Harvest Finance, but I cannot be certain not having used Harvest Finance before. Let's just say you manage to get exactly 1000 USD into this farming pool and you have no difficulty or extra expenses in the process.
Assuming it to be a simple interest of 155.38%, you get...
≈ 29.82 USD in a week
≈ 129.23 USD in a month
≈ 1550.70 USD in a year
And that is assuming that the price of your CAKE and bFARM stays the same, so imagine how much more you will get!
As I have written this post, I realised two things. Firstly, the APY on Harvest Finance changes. When I first took the APY, it was 155.38%, but now it is at 155.07%. At first, I thought I made a mistake, but then looking back at my snapshot, it turns out that I had seen correctly! This may be something you want to look out for with farming not only CAKE but other cryptocurrencies as well. I doubt it will significantly affect the percentage over a moderate time like a month, but it may change substantially over a longer-term like a year, especially since CAKE would be booming up in price. Secondly, the APR/APY is different from PancakeSwap and Harvest Finance for a good reason, or so from my speculations. If you look back at the snapshot I took for PancakeSwap's farming on CAKE, you can notice that there is a compound feature to it. With Harvest Finance, I do not think there is a compound interest to it, which is most likely why its interest is much higher, though I still think Harvest Finance is a good option.
All in all, farming is CAKE is a real-good option from the future it holds, and doing it on Harvest Finance is arguably the best from the rewards it brings, earning a decent amount of farming in the BSC.
Disclaimer: The information above is not financial advice and is for educational and entertaining purposes. All information is of my personal opinion and is based on the research I have made. Any information on this article should not be mistaken as fact, and any decision with crypto means you need to DYOR (Do Your Own Research)