How To Make Money in DeFi
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How To Make Money in DeFi

If you like making money, you have to learn about DeFi. This page will show you real DeFi money-making opportunities (and their risks). You will get actionable examples & expert advice! And, I’ll give you more resources to keep learning.

*This doc is strictly educational and not financial advice.

General DeFi Risks (READ ME)
Important DeFi Vocab

How to make money

💳 Buying & Selling

🧑🏽‍🌾 Yield Farming

🏦 Staking

🤝 Lending

🚰 Providing Liquidity

🪂 Airdrops

💳 Buying & Selling

Explanation: You can buy and sell tokens (like a stock). Buy low and sell high, so simple isn’t it 😉

Risks: general DeFi risks. Since it’s so new, DeFi is way bigger ups & downs than the stock market. It is very common for tokens to go to zero. For normal people, it is best to invest in tokens (like $BTC & $ETH) that will be the most resilient to hard times (aka tokens with the most real-world utility).

Examples (5 yr increase): $BTC (1,000%), $ETH (575%), over 1700 tokens have gone to 0 😯

🧑🏽‍🌾 Yield Farming

Explanation: Yield farming basically means using DeFi to maximize returns. I am going to cover 3 methods - staking, lending, & providing liquidity.

Learn more about yield farming here.

🏦 Staking

Explanation: staking is when you commit your crypto assets (for a period of time) to support a blockchain network and confirm transactions in exchange for rewards. You can stake on any blockchain that uses Proof of Stake.

Risks: general DeFi risks. Since you lock up your assets, you’re less flexible to sell them when the price goes down. It typically takes a few days to un-stake your assets. FYI, blockchains with really high staking APY’s often have very volatile prices.

Examples: Solana (7%), Avalanche (11%), Polkadot (14%), Ethereum (11%)

Learn more about staking here.

🤝 Lending

Explanation: lending is when you put money into a smart contract that connects borrowers and lenders. Borrowers then put down collateral (sometimes) into the smart contract and borrow your money. If the borrower cannot repay the loan, the smart contract automatically gives you their collateral.

Risks: general DeFi risks.

Examples: Aave (2%-11%), Compound (2%-12%)

Learn more about lending here.

🚰 Providing Liquidity

Explanation: liquidity pools are a collection of funds locked in a smart contract. They are used to facilitate decentralized trading, lending, & exchanging. Providing liquidity supplies those pools with crypto assets. You earn fees on each transactions. The more money you provide, the more you earn.

Risks: general risks.

Examples: Uniswap (~3%), Curve (~3%), Balancer (~1.5%)

Learn more about providing liquidity here.

🪂 Airdrops

Explanation: airdrops are free rewards to encourage adoption & generate buzz of a project. You often get aidrops for using someone’s project.

Risks: some airdrops are malicious & can try to steal from you. To avoid those - never pay to get one, never share your private key, & avoid suspicious websites. Do your research on the company before accepting ANY airdrop!

Examples: ENS, Uniswap

Learn more about airdrops here.

👩‍💼 Expert Strategies

Learning from experts helps a lot when trying to figure out investing strategies. Here are example strategies and the actual portfolios of crypto’s wealthiest people!

As always, don’t blindly take one person’s advice and DYOR.

Investing strategies in general
Investing strategies in a bear market
Investing strategies with a small budget
The portfolios of crypto’s biggest investors
17 Different Styles of Crypto Investing

📚 DeFi Resources

Want to learn more about DeFi investing? Here are some more resources!

How to survive crypto in the long-term (w/out getting lucky)
A 5 item checklist before investing in projects
My favorite DeFi education Twitters
My favorite DeFi newsletters
A list of every DeFi application (where you can earn money)

📈 DeFi gains, made easy

Most people don’t have the time to become DeFi experts.

People simply want reliable DeFi returns. But DeFi is scary & hard to use.

We at Burst don’t think it should be this way.

DeFi doesn’t have to be difficult.

We are building an app to get you the best & safest DeFi gains! Sign up here.