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How to make money in a sideways crypto market

yield farming

For a decade Crypto has been about holding and waiting for it to go up.  With the emergence of Defi there is now a new way to make money.  You can make money by holding certain coins and putting them to use.  As an example, you can buy Cake coins for about $20.00 each and stake them on Pancake Swap and get a 83% return.  For every 100 Cake coins that you stake, you will get 83 additional coins per year.  At the end of the year instead of having 100 coins, you would have 183.  If you harvest your yield and restake it daily, you could turn your 100 coins into as many as 230.  

So if you stake coins, you can be profitable in a flat market.  You can even be profitable in a down market.  If the market goes down 25% but over the year you now have double the coins, you still made money.

There are lots of protocols that you can stake to earn yield.  On Ethereum there is Uniswap, Sushiswap, Aave, and Compound and hundreds more.  You can provide liquidity to earn using Uniswap and you can loan money out on Aave.  If you start going down the Binance Smart Chain rabbit hole you will find Tokens that pay millions of percent interest.  I have not figured out how to make money on any of the Defi protocols with the exception of Pancake Swap.  I am sure other people can figure it out, but the percentages of yield on most Ethereum projects is so low that its not worth it.

It might make sense to earn a small yield on a stable coin, but if I am going to hold a risky asset, I want a big yield.

I have tried Blizzard Finance and ApeSwap and KebabSwap and SpaceSwap and Thunderswap and all of them seem to go down.  I wouldn't trust them with anything more than a few hundred bucks.  Pancake Bunny seemed like a cool option for a while.  It paid more than Pancake Swap and the Bunny Token kept appreciating.  Then the whole thing came crashing down.  I was lucky to not own any Bunny at the time.  

There are also coins that automatically increase as you hold them.  For instance, Safemoon has a 10% fee for buying it and selling it.  When that happens a percentage of the fee is redistributed to the holders.  I have a little Safemoon and every time I look at it, I have just a little bit more.  Its cents higher or a part of a cent higher but it is higher.

Another crazy token out there is Goes Up Higher.  They supposedly increase or decrease the holdings out of your wallet to make sure that the coin matches the price.  It is supposed to go up 5% every 4 hours or something similar.  I owned a little for a while but I chickened out.

One of the problems with these random coins like Safemoon and Goes Up Higher is that there isn't aways a market.  For instance I was staking a tDoge pool on Pancake Swap and earned about $50 worth of tDoge and when I try to convert it to something usable, Pancake Swap gives me an error.  I am not sure why I can't convert tau Doge and I am not really sure what it is.  That was one of my many valuable lessons in staking.

Stay away from coins that aren't traded on lots of exchanges.  If it is only traded on Pancake Swap you should probably run.  Make sure it is on, Kucoin, or Binance and you know there is a decent chance that the coin isn't compete bullshit.

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