How to Earn Passive Income with Staking and Yield Farming | BPAYNEWS Learn
How to Earn Passive Income with Staking and Yield Farming
Staking and yield farming can generate passive returns, but risks vary. Learn the basics, where yields come from, and how to start with a safe, simple workflow.
Staking vs Yield Farming
- Staking: Lock tokens to help secure a network and earn rewards.
- Yield farming: Provide liquidity or lend assets to earn fees/incentives.
Risks to Consider
- Smart contract bugs and oracle failures.
- Impermanent loss for LPs.
- Unlock schedules and reward token sell pressure.
Step-by-Step to Start
- Choose a reputable chain and protocol.
- Bridge or deposit funds; review fees and security.
- Stake or add liquidity with a small test amount first.
- Track APY, rewards, and gas costs; rebalance as needed.
Optimization Tips
- Auto-compound if fees allow.
- Diversify across protocols and chains.
- Harvest on a schedule to reduce costs.
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Written by BPAYNEWS Learn | Category: Earn / How-To
