The global cryptocurrency market size was $754 million as in 2019 and is expected to grow from USD 1.6 billion in 2021 to USD 2.2 billion by 2026, at a CAGR of 7.1%. The crypto world has become more promising for both investors and traders around the world. Many have chosen it as their full-time job and earning plenty. If you have a nice job and the crypto world still seems tempting to you, here is a quick guide to earn from Providing Liquidity and Pool Forming.
Providing Liquidity and LP token Forming:
Decentralized exchanges (DEXs) are cutting-edge programs on BSC and Ethereum’s blockchain that offer investors an alternative way to exchange cryptocurrency tokens. Gaining popularity over the last year, there’s now over $40 billion worth of cryptocurrency locked in decentralized finance protocols. This allows for investors to trade cryptocurrencies directly from their respective wallets. You can provide liquidity to decentralized exchanges to earn transaction fees. How? Follow me!
- Go to PanCakeSwap and click on “Connect” at the top right corner to connect your wallet.
- Click Trade and from the drop-down Menu choose Liquidity to choose your favorite pairs to provide Liquidity.
- After this, you should receive LP (Liquidity Provider) tokens. From Sidebar, Choose Farms, and then choose the same pairs you provided liquidity with.
- Add your LP Tokens and click Stake.That’s all. By Providing liquidity you earn 62.5% APR on Cake/BNB Farming. You can calculate your profits here.
In this option, you can simply stake your cake and other tokens with interest as high as 142%.
To stake, you get two options to choose from on PanCakeSwap:
- AutoCake: You get 141.5% APY (Annual Percentage Yield) and the reward you earn is automatically staked to the already staked coins. But if you unstake your cakes within 72 hours you bear an unstaking fee of 0.01%.
- ManualCake: You get 88.26% APY (Annual Percentage Yield) and the reward you have to manually harvest the rewarded Cakes.