What is the best DeFi investment strategy?

Asked 4 years ago

Hi, I'm looking for opinions and preferences because I'm new to crypto trading and DeFi. I'm trying to figure out how to invest in DeFi crypto. Do you have any tips for a beginner? I was looking into things like yield farming, staking, and lending. However, I really don't know where to even start?

Shorting Strategy cycle

Josiah Makori

Tuesday, July 19, 2022

Staking is the easiest and best DeFi investment strategy for a beginner. It involves locking your idle cryptocurrencies in a Decentralized Application (DApp) protocol for a given period. 
By staking a DeFi token, you become a validator in a Proof-of-Stake (PoS) blockchain. PoS blockchains differ from Proof-of-Work (PoW) networks, which typically need mining equipment to confirm transactions. 
As a PoS validator, you earn rewards based on the amount of your staked assets. It’s important to note that most DeFi projects use governance tokens to reward validators, which increases the validators’ voting power. Still, you can trade the tokens for any crypto on various marketplaces.  
After extensive exposure to DeFi, you can consider yield farming as your second investment strategy. This strategy combines staking, lending, and borrowing to maximize returns. While yield farming is more profitable than staking, it carries more risks.  