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How to Farm Digital Currency for Beginners

How to Farm Digital Currency

Farming now has a new baby – digital farming. It’s even more lucrative than farming food crops. Unlike food farming, digital farming yields returns daily. And the percentage yield is huge and can make you a million dollars faster than you can imagine.

Digital farming is the easiest way to earn quick returns on crypto investment. This post is to show you all about it – how it works, all you need to know about farming crypto, and how you can start farming immediately.

The best way to explain what really happens in digital farming is to give you this explanation using one of the examples of digital farming returns. In this case scenario, a $1,000 can yield over 1,000 percent annually without compounding returns.

That’s if you invested $1,000 now in the next 12 months you can earn $10,000. But, if you compound your earnings monthly here’s the kind of returns you can expect.

Startup Capital – $1,000 on monthly compounding:

Month 1 approximate earning – $830 ($1,830 compound invested fund)
Month 2 approximate earning – $1,500 ($3,348 compound invested fund)
Month 3 approximate earning – $2,779 ($6,127 compound invested fund)
Month 4 approximate earning – $5,085 ($11,212 compound invested fund)
Month 5 approximate earning – $9,305 ($20,517 compound invested fund)
Month 6 approximate earning – $17,029 ($37,546 compound invested fund)
Month 7 approximate earning – $31,163 ($68,709 compound invested fund)
Month 8 approximate earning – $57,029 ($125,738 compound invested fund)
Month 9 approximate earning – $104,362 ($230,100 compound invested fund)
Month 10 approximate earning – $190,983 ($421,083 compound invested fund)
Month 11 approximate earning – $349,499 ($770,582 compound invested fund)
Month 12 approximate earning – $639,583 ($1,410,165 compound invested fund)

How much you can start with may depend on you or the minimum allowed by each farm. I used $1,000 as startup for the calculation just to give you an idea of the earnings. I strongly recommend investing more or as much as you are willing to risk.

Understanding Digital Farming

If you know about Cryptocurrency it’s a lot easier to understand digital farming. But I know that everyone understands what farming is. Your knowledge of farming will make it easier for you as well.

In the context of farming, you require SEED and FARM LAND. In digital farming you also need CRYPTO (the seed) and CRYPTO PLATFORM (the farm land). The crypto or seed will be planted on the platform or farm – and that’s how digital farming works.

However, unlike the food farming, this one can start earning you harvest immediately. The moment you planted your token or coin to farm, you start seeing your earnings immediately.

And you can start harvesting too. Although, some farms may lock harvest for a certain period of time – like first 10 hours or 24 hours or even more. But once the lockup time elapses you can start harvesting your earnings anytime you choose.

Who’s A Digital Farmer?

It’s someone who’s farming cryptocurrencies. That’s the simple way to explain it. Digital currencies provides investors opportunity to earn more cryptos while holding a particular token or coin.

A holder of a token or coin that can be farmed and utilizes the platforms provided to Farm those cryptos is a digital farmer. In return you earn either more of the same token or coin that you staked (planted) or you could earn another token or coin depending on the offer from the farm.

A digital farmer earns from digital farms. That’s not to imply there are no risk. A good farmer must understand the risks involved, and ways to mitigate against it.

Different Types of Digital Farming

In farming crypto you may encounter these different types of farming. Sometimes, it may be described as staking or liquidity pool. Whatever name it’s called, they are all farms. You are required to plant tokens or coins to harvest more tokens or coins.

Let me further explain the common types of crypto farming you are going to be encountering.

Single Pool Farming
Liquidity Pool Farming
NFT Pool Farming

Single Pool Farming

Crypto offers rewarding single pool farming. This option is the farming of a particular token or coin to earn the same token or coin or a different token or coin. It usually involves the staking of a particular token or coin.

Simple pools are one of the most risk free digital farming in crypto investment. The only risk there is, could be the risk of the token price fall. If the price falls, the value of the token or coin earned through farming equally depreciates.

NFT Pool Farming

NFT means Non-Fungible Tokens. A unique digital asset that represents ownership of real items like music, videos, clips, arts and more.

NFT staking is a new way of farming digital assets and it’s gaining more grounds lately. It involves the casting of NFTs in Staking pools to earn tokens or coins.

The process involves the purchase of NFTs from either NFT marketplace or from NFTs provided in the particular project, and staking it in the pool to earn more tokens or coins.

Liquidity Pool Farming

A liquidity pool is one of the most useful type of digital farming that contributes to the overall activities of the Blockchain. Every token or coin project needs a liquidity pool to help facilitate buying and selling transactions.

Crypto platforms gives investors the opportunity to provide this liquidity to enable efficient transactions and equally earns them rewards for doing so.

Liquidity pool (LP) farming involves the pairing of two approved tokens or coins into an LP token and staking it in a pool to earn rewards. You can earn as much as 3% daily from your investment in a liquidity pool. That makes it one of the most profitable investment in Cryptocurrency.

But liquidity pool is not without its risk. Although, this risk is so described that most people get terrified of it.

Liquidity Pool (LP) Impermanent Loss

In all of crypto investment it’s only in liquidity pool staking that its loss is so identified and also so described. Impermanent loss may be confusing to many crypto investors. But it’s important that you truly understand how this loss accrues to your farming assets.

Impermanent loss simply means a loss that can be short lived. Some of the best synonyms are uncertainty, fluctuation, hesitation, inconsistency, insecurity, etcetera.

In order words, impermanent loss may not become a loss until you pull out your LP token from the pool. An understanding of some vAMM Blockchain technology would give more clarity to how LP pool farming works.

How Impermanent Loss Occurs

A liquidity pool requires the staking of two paired tokens or coins. The pairing requires the tokens or coins must be in equally monetary value.

But since crypto prices fluctuates, these values change regularly, and affecting the paired value of the two coins. If the price of one or both tokens depreciates it leads to impermanent loss, if LP is pulled out of the pool. This loss can be recovered over time if LP is still staked in the pool.

To maintain this paired value, the Blockchain vAMM would help to balance the pair values by automatically selling any excess value of one pair to buy back equal value of the other pair to keep them both at par on equal monetary values.

This maintenance can cause impermanent loss for one or both of the tokens.

How Much Can Digital Farmers Earn?

Farming pool earnings are calculated in annual percentage returns (APR) or yield (APY). I have also done a simple calculation above using an approximate monthly compound investment plan. That should give you an idea and help you calculate your earnings as well.

However, there are other things you may need to consider when calculating your farm earnings. What you can earn from a farm would depend on the following:

How much percentage the farm offers
How much you invested
How much you can compound
How many times you can compound (daily, weekly or monthly)
How long you can stay in the farm

Note that there may be cost implications as well. The cost of buying the token or coin to farm maybe constantly increasing, thereby increasing your cost of investment. Also, there will be network charges for things like:

Staking fee per staking processed
Harvest fee per harvest processed
Network fees to pair LP tokens
Network fees to unlock LP tokens
Network fees to un-stake your tokens

These different costs depends on the Blockchain network and the farm you are using. No cost is fixed. The time and traffic can also affect the cost – either increase it or reduce it.

How to Find Good Farms Early

As a digital farmer, your advantage lies in finding good digital farms early enough. Finding new farms early is a huge advantage you should explore. It’s not everyday you find farms with 1,000% APR.

Finding a new farm early means you have the advantage to buy the tokens at a pretty cheaper rate. Having the opportunity to buy in early is the number one advantage in digital farming.

There are several platforms where you could find new digital farms as they are launched, but there are many scams out there as well. You need to be guided as a beginner.

To swap, stake or farm POSI Token, click or copy Link , paste in your TrustWallet or Metamask DAPP to connect to Position Exchange.

Follow A Mentor

You will be needing a mentor, if you are new to cryoto. A mentor is just a guide who can help you learn how to Start farming. It’s not a complicated process but it can seem so for a beginner.

Following someone who is already farming with success could be your fastest route to start farming cryptos.

Since you are reading this post now, I assume I can be your mentor in this regard. If you feel the need to follow me, then connect with me on telegram. This Link Adds You To My Group Of Others Like You Who I’m Mentoring.

Please note that I don’t take spamming lightly, and will remove and block you on telegram without warning if you spam the group. Be there to learn only and I will help you on how to start earning from digital farming.

Time to Invest In Digital Farms

I will have to show you to start your first farm. I may also be updating this place to add more additional options or update on changes in any farm I may have introduced here. You must know that in investment things change with time.

Here are list of first farms I will encourage you to start with:

POSI Farm: earn over 1,000% APR. CLICK HERE TO START
Amor Farm: earn over 900% APR. CLICK HERE TO START
Ekta Farm: earn over 400% APY. CLICK HERE TO START

There are many other crypto farms out there. But be guided to make the best decision. The decision to invest in any of the farms is up to you. If you have limited funds and looking for the right farm to guarantee the best Return on your Investment, I will recommend POSI FARM for a start.

However, if you have large funds and wants to explore every opportunity to earn more, you can invest in all of them or as many as your funds can take. But make sure you truly understand the costs, return on investment, and attendant risks.

Conclusion

If you are smart, here are some videos to get you started. In farming crypto, learning is important. Don’t assume anything. Ask questions and find out why, rather than working on assumptions.

Watch this Video on POSI:

When you are done, click on the link to link POSI with your Trustwallet or Metamask to buy and start farming POSI. You can also READ MORE ABOUT POSI FARMING HERE.

Disclaimer: Crypto investment generally is volatile. This post doesn’t encourage a risk-free investment. You have to consider all your options and possibly Do Your Own Research (DYOR) before investing in any crypto project.

Chinedu David
Chinedu David is a business consultant with experience in oil & gas, hospitality, IT & telecom, consumer products, business strategy, marketing and distribution. He was the telecom editor for SuccessDigest for over a decade. And founded Mystore, one of the indigenous online marketplace in 2013. Drop a comment below and he will respond to your query. He can also be reached via email: nedu@myblog.com.ng or Call/Text/WhatsApp: 07087770518
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5 Comments
  • Anonymous Oct 5,2021 at 9:46 pm

    Great piece of investment training material. Keep the good work and God bless you.

  • Chimaobi Oct 4,2021 at 10:35 am

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