I'm not one for FUD in fact I hate it so don't take this article as FUD but instead lessons learned over years and the good old say... "If it sounds too good to be true, it probably is" quote from Richard Carlson.

High Yields Outside of DeFi

There are a number of ways to earn high yields on crypto. First let me start off with my all time favorite and what I consider to be the safest out of them all. That would be PoS (Proof of Stake) For staking tokens on a open wallet you can be selected to process a block in the chain. For doing so you get the "mining reward" plus any fees collected for that block.

To me this is the safest as you still are in control of your wallet but of course it has some risks such as losing your keys, possible attack, someone stealing your computer etc. I consider it safest however as it's going to take some serious effort to acomplish any of downfalls.

Earning Interest

These sites seem to be ok however you are giving up your rights in terms of you are sending your crypto out of your own wallet into theirs. Sites like Nexo which offer you to deposit your crypto into a "bank" like savings account and earn up to 8% on your crypto and 12% on your stable coins sounds very promising. I mean you could in theory take all your stock investments cash out and depots them into a stable coin and most likely earn more than the stock market would give you or most dividend stocks.

However there is high risk as you no longer own that crypto instead it's sitting in their account and they could close up shop at any moment. That's kind of the negative of decentralization is no one is held accountable for the rug pulls.

DeFi

Good old DeFi, I recently learned it a few months back when CubDeFi launched and I've fallen in love with it. However VERY high risk but not any more risk as the Earning Interest part above. If you do your research, invest only want you can afford to lose.

DeFi currently offers the highest of the yields but also the highest of the risks. We are talking about 50%+ APR in most cases or upwards of 100%+ in others if you get in early enough or get into a good pool.

DeFi for sure will be the primary focus moving forward as that's where the money is at. I'm sure the next innovation we will see is some way of making it decentralized enough to the point that no single person controls wallets or a way to better prevent rug pulls.

In any case stacking now and getting ready could be a very positive play.

*This article is not investment advice and is for entertainment purposes only.

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