Earn interest on your idle cryptocurrency holdings with the best yield farming crypto platforms! Yield farming is one of several methods for earning interest on crypto assets. The basic idea is that by lending your cryptos to a liquidity pool, you will be rewarded an attractive annual percentage yield (APY) on your funds.
We will review the best yield farming crypto platforms for 2022 considering interest rates, lock-up terms, security, supported tokens, and more in this guide.
Top 8 Yield Farming Crypto platforms
So, What is Crypto Yield Farming?
Yield farming is a way of earning rewards or interest by depositing your cryptocurrency in a pool alongside other users. The pooled funds are used to execute smart contracts, such as interest-bearing cryptocurrency lending. Crypto-yield farming is a new and highly volatile industry. Therefore, it is vital to understand its pros and cons.
Pros & Cons of Crypto Yield Farming
8 Best Crypto Yield Farming Platforms Reviewed
The best yield farming crypto services provide an impressive balance of security, appealing yields, and reasonable locking terms. They also consider user-friendliness, customer service, and supported tokens.
Quint is the best yield farming crypto platform today, involving crypto interest with real-world rewards. Quint offers two types of super-staking pools.
Luxury Raffle Pools are the first type. When users stake into these pools, they get crypto interest. They are also entered into a draw for luxury prizes like luxury watches, tour packages, and more.
Quintessential Pools are the second type of super-staking pool on Quint. These pools provide guaranteed rewards such as discounted stays at hotels, discounted airline tickets, luxury car experiences in cities worldwide, and more. While the rewards change, users who contribute to these pools are guaranteed to receive them as well as crypto interest.
Quint also provides a more conventional staking pool where users can earn higher interest rates on QUINT tokens staked. Users can earn up to 16.18% APY by staking QUINT alone while combining BNB and QUINT can earn users up to 39.08% APY.
Crypto interest from the Quint platform can be manually harvested and reinvested at any time. There are no lock-in periods, and switching between the conventional and super-staking pools is simple.
AQRU is also the best yield farming crypto platform due to its excellent user interface and yield rates. Without any lock-in periods, AQRU provides popular stablecoins and cryptos. USDT, USDC, and DAI earn a 12% annual percentage yield (APY). BTC and ETH yield 7% APY when yield farming.
With no hidden fees and only a $20 withdrawal fee, AQRU is a good choice for long-term holders. Besides this, AQRU's user-friendly regulations and robust security measures mean that users' crypto holdings are safe at all times.
Accru Finance Ltd, a private limited company incorporated in England and Wales, owns AQRU. Their crypto wallet system is protected by Fireblocks, a leading wallet infrastructure provider, that keeps your Yield Farming Crypto accounts safe. A $30 million policy is in place to cover theft losses if assets are stolen.
The minimum deposit required to lend crypto on AQRU is $100.There is currently no minimum withdrawal amount as long as users can cover their withdrawal fee.
Crypto.com is another best-yield farming crypto platform. Consider it if you want to earn a high rate of interest on your cryptos while avoiding volatile price fluctuations.
With this provider, you can earn an APY of up to 14% when you deposit stablecoins like Tether and USDC into your account. Certain variables, however, will determine the exact APY that you receive.
For instance, you'll need to keep the Tether tokens locked up for at least three months to earn the full 14% APR. You will also need to stake at least 40,000 CRO tokens. The APY drops to 6% if you deposit Tether without staking any CRO tokens and make convenient withdrawals. So, Crypto.com provides a range of APY to meet a variety of needs.
However, Crypto.com features over 250 digital currencies that pay interest, the vast majority of which are not stablecoins. Everything from Bitcoin, Ethereum, and Litecoin to Solana, Shiba Inu, and Decentraland is included. The APY you can earn is calculated by the lock-up period and whether you choose to stake CRO tokens. Nevertheless, Crypto.com offers a popular mobile app that allows you to access your account from anywhere.
OKX exchange is the best yield farming crypto platform for 2022 because it offers multiple ways for investors to earn passive income from their crypto holdings. OKX exchange is available in over 100 countries and has over 20 million global users.
Investors can use OKX to buy, trade, stake, and earn interest on their crypto assets. Investors can use 'OKX Earn,' a one-stop shop for centralized earning options such as dual investment, P2P lending, and staking.
The Earn program is built on the OKExChain and offers several DeFi (decentralized finance) products, such as lending DApps and access to decentralized exchanges.
Investors can boost their yields by using the OKx Pool to access multiple mining services. PoW mining is supported by 9 major cryptos, including Bitcoin. The OKx Pool's top mining features include daily settlements, no minimum payouts, and a consistent income flow.
Furthermore, Tamadoge (TAMA), a popular new crypto, is launching its first exchange offering with OKX. The token will be available on this platform's centralized and decentralized exchange, making it available to investors regardless of location.
Investors can begin trading cryptocurrencies at a low cost of 0.10% per transaction after completing a quick KYC process in under 10 minutes.
Next on our list is eToro, an all-in-one trading platform that provides a wide range of cryptocurrency products. We couldn't leave eToro off the list because it is one of the best yield farming crypto sites in terms of security. It is a multi-asset investment platform that seeks to build a community of knowledgeable traders.
Crypto Staking, one of eToro's newest features, is a type of yield farming in which specific cryptos are used to validate transactions. Owners of the crypto assets that are staked receive rewards.
Users on eToro can earn yield by staking their Cardano (ADA) and Tron (TRX) coins. Because eToro is still in its early stages as a yield-farming cryptocurrency platform, it is looking to add more options for users to earn.
eToro gives good returns for farming crypto, but low-tier members should be aware that a big chunk of all yields goes to the provider. If you already have an account and know how the platform works, then eToro could be the best yield farming crypto platform.
Coinbase offers one of the top-yield farming platforms. Once you have cryptocurrency in your Coinbase account, you can begin earning interest through Defi yield and staking.
This is possible through its automated staking tool, which has no lock-up period. Even though Coinbase has only recently entered the crypto yield space, the platform already supports around ten tokens, including Algorand (ALGO), Cardano (ADA), Cosmos (ATOM), and Dai (DAI).
Although Coinbase is great for beginners, the APYs on offer are considerably lower when compared to other platforms. But Coinbase does have some of the best security features in this area. These include cold storage, two-factor authentication, and whitelisting of IP addresses and devices.
Further to that, Coinbase is not only a regulated entity in the United States, but the company is now listed on the NASDAQ exchange. Coinbase is also a good option if you want to build a diverse cryptocurrency portfolio, as the platform supports more than 50 digital tokens.
Youhodler is next on our list of best yield farming crypto platforms. Based in Switzerland, Youhodler has gained attention due to its appealing financing options, smooth interface, and fully accessible nature. More than 150,000 users have joined YouHodler since it launched in 2017, and it now operates in more than 200 nations.
YouHodler's security is impressive. Funds are stored in a combination of hot and cold wallets, and Ledger Vault technology has been used to give users more custodial options. Users with more than $10,000 in their accounts can also use '3-factor authentication' to halt withdrawals.
YouHodler is well-known for its high-yield farming options. The top 50 cryptos are accepted, and the interest rate can reach 10%. Stablecoins can yield up to 8% (excluding compounding). Returns differ from asset to asset, so double-check rates before registering.
The platform is an excellent choice for investors looking for a yield farming platform. Except for US territories, Germany, and a few Middle Eastern countries, it is available almost everywhere. YouHodler is a strong contender for the best yield farming platform, with a diverse set of accepted assets, a transparent fee structure, and simple terms.
SushiSwap is is a decentralized exchange and becoming more well-known in yield farming, also known as liquidity mining. The platform allows users to discover the multiple advantages of DeFi.
For instance, SushiSwap allows users to earn a part of the transaction fees for providing Sushi's liquidity rather than just trading tokens all day long.
SushiSwap exchange uses an automated market maker methodology to swap crypto. Liquidity providers receive native SushiSwap Liquidity Pool Tokens for contributing assets to the pool.
Users can engage in all other rewards-earning products, such as staking, liquidity pools, and token exchanging, in addition to the SushiSwap tokens.
SushiSwap platform users have access to pools of pairs of assets for buying and selling cryptocurrency. They can also reduce or increase liquidity. The service pays liquidity providers 0.25% of each trade in a pool. As a Sushi liquidity provider, you earn SUSHI token rewards with no lockup period.
The SushiSwap website is unique in that it allows you to effectively stack three types of yield on top of each other: network tokens, protocol usage, and leverage demand.
How does Crypto Yield Farming Work?
The way yield farming works is like putting money into a bank savings account. In yield farming, the pooled funds are used to lend to others while you earn interest on the deposits. However, rather than being converted into a mortgage or a company loan, bitcoin in a yield farm is invested in smart contract applications.
Smart contracts are kinds of computer programs that use blockchain technology, which is what makes most digital currencies work.
In yield farming, users stake their cryptocurrency, which is like making a deposit. Crypto staking usually requires you to leave your money invested for a certain amount of time. Depending on how it is invested, your crypto may be used as collateral or liquidity for mining pools.
Is Yield Farming Crypto Profitable?
Crypto-yield farming has the potential to be extremely profitable. In general, what you pay to lend tokens to a liquidity pool should be the first consideration. If you make a $100 ETH deposit and receive at least 5% interest in the first two months, you could have a $200 portfolio. Yet, yield farming is considered risky, and farmers run the risk of temporary loss when holding investments would yield higher returns than staking them and more.
What Cryptos can you Yield Farm?
Almost all assets are used in crypto farming to generate income and earn interest. This is because yield farming mainly provides an individual trade pairing with adequate liquidity. Crypto trading pairs need liquidity to work well, which means you can choose any token you want. The liquidity of your deposited tokens may influence the interest you earn.
How to earn yield on crypto?
The most concise way to earn a passive income with DeFi is to deposit your bitcoin and other cryptocurrencies on a platform or protocol that will pay you an APY (annual percentage yield) for it.
What are Crypto Yield Farming Taxes?
Yield farming does not currently have specific tax rules, but that does not mean it is not taxed. If you earn money from yield farming, you must pay income tax on it. If you make a profit from yield farming, you will be subject to Capital Gains Tax. In other words, if you buy $1,000 worth of Ethereum and cash out at $1,500, $500 of that amount may be subject to tax. However, you may be required to pay tax on any profits.
How much can you make crypto yield farming?
Yield farming cryptocurrency is on the rise and can be extremely profitable. Some farms earn thousands of dollars per month from digital currency mining operations. You may not be able to do so right away, but if you put in the effort to learn how the best yield farming crypto works, you could see large gains in a short period.
If you have cryptocurrency in your wallet, you can stake or lend it to earn returns ranging from 1% to 20% or more, depending on the method and cryptos.
What's better farming or staking crypto?
Most of the time, the interest rates for yield farming are higher than those for staking, and new coins offer higher returns than tokens with a lot of capital, like ETH. Staking, on the other hand, provides a fixed APY, allowing users to forecast future returns and plan accordingly.
Lastly, the benefits of yield farming are very attractive because they provide significantly higher returns than traditional bank savings accounts. Choosing the best yield farming platform for you can give you a competitive advantage, especially if you plan to start early.
If you want to start yield farming right away, we recommend that you read our guide above to the best yield farming crypto platforms and choose the one that best meets your needs.
You can learn more about crypto interest accounts. Do you think it's a good investment strategy, or do you prefer other ways to profit from your crypto investments? Let us know in the comments below!
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