Best Yield Farming Crypto Platforms — Highest APY Yield Farming

In this article, we’ll review the best yield farming crypto platforms, examining how they work, their potential for profitability, safety concerns, the types of crypto you can farm, and much more. Cryptocurrency yield farming can be a very lucrative investment, so take your time to understand how it works and if it’s the best approach for you!

Best Yield Farming Crypto Platforms Reviewed

Our research of the best yield farming platforms revealed that the top providers offer a good balance between safety, attractive yields, and reasonable lock-up terms.

1. Binance 

Binance is a global and one of the most trusted crypto exchanges, with over 212 million users. It was founded in 2017 and supports more than 500 cryptocurrencies. You can also use the platform’s app, which is available on both iOS and Android. 

Binance users can earn interest in their crypto with Binance Earn and trade hundreds of cryptocurrencies in the margin, spot, and futures markets. Binance P2P enables the buying and selling of crypto, while Binance Launchpad allows users to buy or earn new tokens. 

Users can also trade, loan NFTs on the Binance NFT marketplace, and stake with some of the highest APY yield farming options. The “Futures Mock Copy Trading Competition” on Binance features a prize pool of 30,000 USDT.

If you want to track the latest crypto prices, trending altcoins, market cap, or trading volumes, you can easily do it through the Binance Cryptocurrency Directory. 

To buy crypto, complete a KYC and then purchase using Apple Pay/Google Pay, credit/debit card, or cash balance.

2. MEXC 

MEXC has also made it to our yield-farming crypto list. It is a world-leading cryptocurrency exchange that was founded in 2018. Its total crypto count is almost 2,000. 

In addition to the wide selection of crypto to choose from, the platform also offers high liquidity across trading pairs. MEXC is ideal for people who want to invest in crypto projects early on, traders who want to trade multiple crypto assets at a substantially low fee, and those who want to copy trade experienced crypto investors. 

Some of MEXC’s best features include demo and leverage trading, copy trading, bonuses and competitions, and no futures trading fees from markets. 

There’s also a mobile app available on Android and iOS, while the desktop app is supported for Windows. 

Of course, the exchange offers yield-earning opportunities via MEXC Savings. In fact, two products are offered: flexible and locked savings. 

Customer support is available through several channels: the Help Center, inquiry submission, email, chat, and social media. 

3. KuCoin 

KuCoin is a crypto exchange that launched in 2017 with the goal of offering a convenient and secure space for users worldwide to trade many cryptocurrencies. 

The platform is trusted by over 30 million users from more than 200 countries and regions, meaning 1 out of 4 crypto holders worldwide Is with KuCoin. It also supports more than 700 coins and has launched over 200 projects. 

In addition to offering the best yield farming pools, the platform provides a user-friendly interface, advanced features, and a competitive fee structure. The best products and services KuCoin offers are spot trading, KuCoin Earn, buying crypto, crypto derivatives, margin trading, trading bot, GemSPACE, and leveraged tokens. 

This is a trusted platform for many reasons – it ensures secure asset storage, PoR asset transparency, and strong account security. KuCoin offers many investment and trading options that allow you to buy and sell crypto for as little as $1. 

The KuCoin website and app allow you to trade anywhere, anytime. They are available on Google Play, App Store, and Android APK. KuCoin offers 24/7 customer service. 

4. OKX 

For investors seeking passive income from cryptocurrency holdings, the OKX exchange offers multiple income-earning and high-yield farming opportunities. Available in 100 + countries, the OKX exchange is accessed by over 20 million global users.

With OKX, investors can buy, trade, swap, stake, and earn interest on their cryptocurrencies. Investors can access ‘OKX Earn’ – a one-stop shop for multiple centralized earning options such as dual investment, P2P lending, and staking. Built on the OKExChain, the Earn program offers several DeFi (decentralized finance) products as well – including lending DApps (decentralized applications) and access to decentralized exchanges.

With the OKx Pool, investors can maximize their yields by accessing multiple mining services. Proof-of-Work (PoW) mining is supported by 9 major cryptocurrencies, such as Bitcoin. The top mining features on the OKx Pool include daily settlements, no minimum payouts, and stable income flow.

After completing a quick KYC (Know Your Customer) process within 10 minutes, investors can begin trading cryptocurrencies at the low cost of 0.10% per transaction.

5. Coinbase 

Coinbase is one of the world’s largest cryptocurrency exchanges in terms of user accounts – with the platform now supporting tens of millions of traders. You can easily buy digital currencies here with a debit or credit card, and the Coinbase trading platform itself is perfect for beginners. Once you have crypto in your Coinbase account, you have the opportunity to start earning interest.

This is offered via its automated staking tool – which comes with no lock-up period. As Coinbase has only recently entered the cryptocurrency yield farming space, the platform supports just six tokens as of the time of this writing. This includes Cosmos (5%), Tezos (4.63%), Ethereum (4.5%), and Algorand (4%). Stablecoins include Dai (2%) and USDC (0.15%). Although Coinbase is ideal for newbies, the APYs on offer are a lot less competitive than other platforms.

On the other hand, Coinbase offers some of the best security protocols in this space, including cold storage, two-factor authentication, and IP address/device whitelisting. Moreover, Coinbase is not only a regulated entity in the US, but the company now trades on the NASDAQ exchange. Coinbase is also a good option if you want to create a diversified portfolio of cryptocurrencies, as the platform supports more than 50+ digital tokens.

6. YouHodler 

Swiss-based YouHodler has been gaining traction recently due to its attractive lending options, slick interface, and transparency. Since its founding in 2017, YouHodler has accumulated more than 150,000 users in the 200+ countries it operates in.

YouHodler’s security is excellent. Funds are secured in a mixture of hot and cold crypto wallets, and Ledger Vault technology has been implemented to provide users with more custodial options. Additionally, users with over $10k in their accounts can use ‘3-factor authentication’ to suspend withdrawals.

YouHodler is famous for its excellent yield farming options. The top cryptocurrencies are accepted, and interest can be as high as 15%. Rewards for holding stablecoins can be up to 12.3% (excluding compounding), and Bitcoin can yield up to 6.8%. Returns do vary from asset to asset, so it’s worth double-checking rates before registering.

For investors looking for a yield farming platform, YouHodler is a great choice. It’s available almost everywhere except US territories, Germany, and a few Middle Eastern countries. With a wide array of accepted assets, transparent fee structure, and easy-to-understand terms, YouHodler is a sure contender for the best yield farming crypto platform.

7. Aave

Aave is a decentralized crypto lending platform on the Ethereum network, allowing users to borrow and lend crypto. To automate the process, the platform uses smart contracts. This is the most well-known Finish crypto project, which dates back to 2017. 

Aave is a community-governed protocol with 167,909 token holders. It has a large liquidity pool, with more than $20 billion of liquidity locked across eight networks and more than 15 markets. The Aave protocol presents aTokens, the native Aave tokens users get after depositing crypto assets.

This protocol prioritizes security, as leading security companies have audited it. Moreover, the community can participate in improving the protocol through the Bug Bounty Program, and those who identify and report bugs are rewarded. 

Currently, the protocol is secured with over $272 million worth of Aave tokens. It operates across many networks, including Avalanche, Base, Arbitrum, Optimism, Aave Arc, Gnosis, Ethereum, and Polygon. Aave’s Polygon Layer 2 integration testifies to its commitment to decreasing the high transaction fee friction. 

What Is Crypto Yield Farming? 

Crypto yield farming occurs when you stake or lend your crypto holdings to generate passive returns and earn rewards. Decentralized finance, or DeFi for short, has gained traction lately as a result of new features such as liquidity mining.

How Does DeFi Yield Farming Work?

In its most basic form, when you use a yield farming crypto site, you will be doing so to earn interest on your digital assets.

In many ways, this is similar to depositing money into a traditional savings account that offers an annual percentage yield (APY) on your funds.

However, make no mistake about it — not only is the concept of yield farming crypto sites much more complex than a conventional savings account, but the risks are much higher, too.

As such, we’ll explain the fundamentals of crypto yield farming in the sections below so that you have a firm understanding of this niche sector’s operation.

Yield Farming Pairs

The first thing to know about yield-farming crypto sites is that each liquidity pool is a trading pair.

As a basic example, let’s say that the smart contract deposits funds into a BTC/ETH pool. In doing so, you are providing liquidity for both Bitcoin and Ethereum, which, in turn, ensures that sufficient levels of capital are available on this trading pair. In this example, liquidity is likely to be provided to an exchange that offers a trading market on BTC/ETH.

With this in mind, when you engage in yield farming crypto services, you need to consider volatility levels for both of the digital tokens in the respective pair.

APYs

The next thing to understand is the annual percentage yield (APY). This simply lets you know how much you will make by providing liquidity for a specific yield farming DeFi pair.

For instance, if the APY offers 10% and you deposit a total of $1,000 in crypto, you should expect a return of $100. However, your returns are paid in crypto tokens instead of fiat money.

Therefore, if you originally deposit 1,000 ETH at 10%, your rewards will amount to 100 ETH.

With this in mind, you need to consider the respective tokens’ market value. After all, crypto token valuations change on a second-by-second basis – which will either benefit or hinder your investment returns.

Reward Coins

When you deposit funds into a traditional savings account, interest is paid in the respective currency. However, in the case of yield farming crypto sites, there are a couple of clear differences to consider.

• Your interest payments will be distributed in digital assets;
• There can and will be a variation in the digital asset in which your interest is paid.

As such, this is something to consider when choosing the best yield farming crypto platform for your requirements.

Lock-Up Period

A lock-up period refers to the amount of time you must lock your tokens up before you can make a withdrawal.

The lock-up terms stipulated by your chosen yield farming crypto platform are a crucial metric to consider before signing up.

After all, if you need access to your digital assets but your tokens are locked away in a smart contract, you won’t be able to withdraw them until the minimum redemption period passes.

Distribution Frequency

The last thing to remember when searching for the best crypto farming platform is to respect the distribution frequency of your interest payments.

For example, some yield farming platforms distribute interest payments anytime users want. This then allows you to re-inject the funds back into an interest-paying account, which, in turn, will allow you to benefit from compound growth.

On the other hand, some crypto yield farming sites will distribute interest at the end of the lock-up term. This means that you won’t have access to any funds – including rewards and your initial principal investment until the lock-up period has concluded.

Is Yield Farming Crypto Profitable?

Yield farming crypto can be profitable, but it’s not without risks. It involves lending and staking your cryptocurrency to earn rewards or interest. The profits can be high, especially when the market is doing well because the rewards often come in the form of new tokens whose values can increase.

However, the crypto market is unpredictable, and the value of rewards can change quickly.

Crypto Yield Farming Taxes?

You likely know that many countries will tax cryptocurrency profits in the form of capital gains. In other words, if you buy $1,000 worth of Ethereum and cash out at $1,500 – then $500 of this figure could be liable for tax.

However, you might also be required to pay tax on any gains you make from interest-earning tools such as crypto yield farming. Depending on your country of residence, this could be taxed in the same manner as earnings made via interest accounts or dividend payments.

That said, crypto-related taxes, especially those related to yield farming, are a highly complex area. As such, it’s best to speak with a qualified advisor who specializes in digital currency taxes.

Is Crypto Yield Farming Safe?

Before getting started on your crypto yield farming journey, it is crucial to consider the risks.

After all, when you consider that many liquidity pools offer double- and even triple-digit APYs, the risk of loss is going to be much higher than that of conventional savings accounts.

The main risks that we identified when reviewing the best crypto yield farming platforms are as follows:

• Token Price Volatility — It goes without saying that unless you are farming a stablecoin, you will need to factor in the risks associated with volatile and market pricing.
• Platform Risk — You need to consider the risk associated with the DeFi yield farming platform itself. You need to check if the platform is legitimate so that you don’t deposit funds into a shady one.
• Rug Pulls — These refer to digital assets that are created with the purpose of theft. Therefore, you need to do your research and make sure that the high-yield farming crypto project you’re trying to inject your funds into is not rug pull.
• Smart Contract Risk — You need to ensure that the smart contracts are verified and without flaws, as a poorly designed smart contract can lead to the theft of your tokens.

How Did We Rank The Best DeFi Yield Farming Platforms?

Before picking our top contenders, our team of experts vet every platform according to the following metrics:

• Supported Cryptocurrencies — We made sure the platform we chose supports a variety of cryptocurrencies, including stablecoins, so you can maximize your earnings potential.
• Security Measures — We looked at the platform’s security measures so that your investments are safe and sound.
• User Interface — We checked out each platform’s interface to make sure it is user-friendly and easy to navigate.
• Customer Support — We considered the quality of customer support the platform provides in case of any issues.
• Annual Percentage Yield (APY) — Finally, we check the platform’s average annual percentage yield (APY) to ensure you’re getting a good return on your investment.

Conclusion

Yield farming, the practice where you earn rewards by staking or landing your digital assets has become a popular trend in the DeFi space. This is why the best yield farming crypto platforms have seen such hype from crypto investors looking to increase their holdings.

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