In this week’s episode, we have part 5 of the Defi series with Luis Alvarado where he explains the 3rd strategy for making passive income in DeFi: staking.
Check out parts 3 and 4 of the series if you want to learn how to make passive income with liquidity pools and with lending & borrowing.
What we discuss in this episode:
•Where should you stake your crypto?
•How many assets can you stake and how are you rewarded?
•How your crypto can be in 2 places at once?
•How should you diversify your investment strategies?
DeFi is all about becoming your own bank and making your money go further, and staking is another prime example of how to make your money work for you, sometimes without even leaving your wallet.
An interesting and less well known strategy he covers is called liquid staking, where you can earn token rewards with the crypto in your wallet without needing to stake it on a specific platform first, allowing you to put it into a liquidity pool instead.
And we never leave out potential risks, so what should you watch out for when staking? There is a chance of the staking platform disappearing, but that chance is actually less than 1%. And there are ways to educate yourself first to find more trustworthy platforms that perform well consistently.
To conclude this episode, Luis shares how he diversifies his assets to invest in different passive income strategies which all depends on your risk tolerance and the goals you want to achieve, so everyone’s strategy will be different!
Want to become your own bank?
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