Basic Strategies to be explained:
Holding- Keeping tokens in a wallet, hoping the price goes up. Not making tokens productive.
Staking- Provide single tokens to a protocol to earn rewards. Single token staking allows the staker to participate like verifying transactions, asset collateralization, and governance voting.
Liquidity providing to an AMM- Essentially staking two different tokens in a pair in a protocol to create a tradeable market. Examples: ETH/ DAI, BNB/BUSD. (Common swapping pairs). In exchange, LP provider reaps swapping fees and receives a third token, called an LP token (which can be yield farmed.)
Yield Farming- Putting LP tokens to work by staking them into an LP reward protocol, which can earn insane percentage yield on top of the accrual of swap fees from providing liquidity.
Lending and borrowing- Providing tokens to be borrowed (like we did in the last lesson on AAVE) for a yield, or borrowing the tokens yourself for a variable interest rate. In order to borrow, user must supply sufficient (crypto) collateral to a smart contract in a permissionless fashion.
Trading- Exchanging one token for another; can take place on a CEX like Binance or a DEX such as Pancake Swap. Trading strategies vary; buy low sell high for a basic :).
IFOS and ICOs- Initial farm offerings/ initial coin offerings are a way to receive early access/ tokens in exchange for providing early funding to a project. Best way to catch early pumps.
Airdrop- Receiving tokens right to your wallet; usually as a reward for being an early or active investor/ user of a protocol. Good way for new projects to begin community building.
Consider buying a PokeGan NFT.
You'll gain so much more than the basic outlines here.
Tokengated lessons provided by Omakasea.
