What is crypto liquidity mining?

In crypto liquidity mining, you earn rewards by letting a decentralized trading service work with some of your cryptocurrency tokens. These tokens will facilitate low-friction trades between anonymous crypto holders. Let’s start from the bottom and work our way up.

How does liquidity mining work?

They can receive interest, a portion of fees accrued on the platform they are lending their tokens or new tokens issued by these platforms. Liquidity mining is one of the more common ways of yield farming where investors can earn a steady stream of passive income.

Are You a victim of a liquidity mining scam?

If you don’t want to be a victim of a liquidity mining scam, make sure you do proper research and learn everything you can about a business before investing. Liquidity mining is a type of passive income that allows crypto holders to profit from their present assets instead of holding them in cold storage.

What is yield farming crypto?

Yield farming crypto can generate passive returns on holdings using decentralized finance (DeFi) protocols — but participating in it is very rarely a passive endeavor. Yield farmers often execute complex strategies, moving crypto assets between platforms to maximize liquidity mining returns.