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Top 4 ways to grow your crypto

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Want to get even more from your cryptocurrency investments? You have several options to choose from.

Staking – the classic

The classic way to increase your crypto capital is staking. You deposit your coins in the smart contract and receive regular rewards in the form of other cryptocurrencies. It also supports the crypto consensus Proof of Stake. Most brokers and exchanges offer this service.

Lending: Lend your cryptocurrencies

Lending is quite similar to staking, at least from an investment perspective. You lend your coins to other users and get interest on them. However, since you do not store this in a smart contract like with staking and therefore no longer have access for a while, lending is much more flexible than staking. The counterpart to lending is borrowing, i.e. borrowing cryptocurrencies for a fee. Most brokers and stock exchanges also offer this service.

Liquidity mining

Liquidity mining is a phenomenon in the field of decentralized finance. Money is also lent here. However, this is provided for a decentralized exchange (DEX) and not for individual users as with lending. Those who do this are usually rewarded with cryptocurrencies.

Yield farming

Yield farming is the supreme discipline among the options for earning passive income in the crypto space. Here, resourceful investors combine various options from the field of decentralized finance to farm “yield”. Cryptocurrencies are borrowed via borrowing and used elsewhere to operate liquidity mining. The tokens that you get for this are used elsewhere for lending. This is certainly the most complex method to increase your crypto capital.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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