By Nirado | Nirado | 19 May 2021


Part 3


Today I want to cover DeFi and Staking . What is DeFi, what is staking, how much money you need to start, and what are the returns.

If you haven't read PART 1 and PART 2 do so now before continuing.

To explain DeFi, let's start with the name. De(Decentralized)Fi(Finance) is a new tool in the financial markets that allows it's users to do many things previously thought impossible or reserved for the 1%. 

Now DeFi covers a huge spectrum of financial assets, including but not limited to stablecoins, liquidity providing, earning pools, farming, exchanging, swapping,...

I use earning pools, swapping, stablecoins and DEXs (DEcentralized eXchanges), as liquidity providing and farming can give amazing returns, the risk is very high and it's a very active investment that has to be always monitored and I like passive investments.

Earning pools can be found on platforms like pancakeswap and offer automated CAKE restaking for compounding. It has an APY of ~140% (it varies from hour to hour but somewhere around there).

Pancakeswap is also very popular like Uniswap and similar services, for, you guessed it, swapping. That is when a series of smart contracts convert you input coin into the selected output coin, with some allowed price slippage. (Simplified version with big words)

One of the most important DeFi instruments are stablecoins. Those are cryptocurrencies pegged (attached by a series of smart contracts) to some FIAT currency, usually the $USD.

Now, staking in the other hand, is a relatively safe and secure way to passively earn some crypto with the possibility that it still rises in value increasing your rewards (think, stocks with reinvesting dividends).

Sometimes the entry point for staking is very high, but that is solved by using the exchanges to stake. Most big exchanges like Binance and Kraken offer those type of services, where multiple users put low amounts of crypto into a pile where, when combined, it can be used for staking.

If you want to invest larger amounts you can always do it on the originally intended way by the specific crypto that you want to stake creators. THat way, you often get larger rewards with bigger technical knowledge required.

In this series of posts will be covering my favorite investing methods, the P2P platforms and staking. I'll share my experiences, the platforms that I like and don't like and what returns I have realistically been getting. I'll also cover the safety and regulations of the platforms and to what extent your assets are protected. 

Thank you for reading and if you want to help me make more of these articles tip me, it's free :)

Note: This is not financial advice. Always invest at you own risk.

How do you rate this article?




Young Crypto Enthusiast


Student with interest in Tech, Marketing, Corporate Design and Cryptocurrencies.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.