Massive Passive Income Is Now Possible With DeFi

I write often about passive income streams. I'm a huge fan of them and ever since I started building them 6 years ago I'm already able to live a life without having to work but I still choose to because I love what I do!

This passive income source is DeFi and Cryptocurrency let me show you how it's done, the benefits and the risks involved.

DeFi or Decentralized Finance has rapidly grown over the last 12 months and it's only getting started. As more trusted platforms come online such as CubDeFi this area is expected to grow by at least 10x in the next year as more platforms come online and start using stable coins such as USDT and USDC.

If you need details about how to start in CubDeFi I created a get started training article here...

https://leofinance.io/@bitcoinflood/newbie-guide-to-cub-finance-with-bleo-and-bnb

With DeFi what you are doing is adding your crypto into the liquidity pools to allow others to use them via any means they wish. In return for doing so you now earn a yield on the investment you have put in. While banks might pay you 0.01% or 0.5% a yield farm can in most cases earn you 15x this or better!

You can think of yield farms as taking your crypto and depositing into the "bank" kind of like you would with bank deposits, fixed-term deposits and bonds. For example say you take 1,000 USDC and deposit it into the DeFi platforms. This provides liquidity to the platform allowing it to move funds more easily. In exchange for doing so you earn that platforms Token which is the Fee earned from other transactions that are taking place on the DeFi. You can even taken the earned tokens and deposit them or move your own funds around from time to time where demand is needed providing you with passive income.

Most of you have seen this or heard of this in action from the platform UniSwap whos price skyrocketed!

Yes, there are risks and there are high risks if you're not at least careful with what you do. Since DeFi is pretty new and being that it's decentralized that also means there are ZERO guarantees.

Make sure you research a DeFi platform before getting involved. Based on my own personal experience and research I would recommend using CubDeFi As they have a long track record of being a platform that has produced many other great platforms such as this one here LeoFinance.io. Again this is my own person preference and recommendation please review any and all and make the decision yourself.

The biggest risk is what is called a "rug pull" or "exit scam" it's when a DeFi platform seems legit at first but then quickly shuts down the site and ships the contents of the wallet to another wallet never to be seen again. DO YOUR OWN RESEARCH don't trust every DeFi you come across. I know those crazy high APYs can look good but what's your APY if they cut and run with your crypto!

"Price Orcales" Since the platform runs on pulling live price points from other platforms to give you your trading values at that time they can of course possibly be manipulated on the back end causing crypto to be syphoned off into another wallet. This could be done on small scale or large.

"Price Swings" Yes crypto prices go crazy. They rally by thousands but they also fall by thousands. In doing so you run the risk of losing funds within a farm or having less value.

Posted Using LeoFinance ^Beta