And here the main risk is in hacking the site and losing its entire liquidity pool. Taking into account the fact that, in addition to the farming token, the user receives a percentage of the tokens that he gave to the platform, participation in farming is beneficial in itself. For this reason, with the loss of mass interest in the site, the cost of the token can fall hundreds of times, given the previous crazy growth. Their price is determined only by the popularity of the project by which they are released. Apart from the bonus reward for users, such "farming" tokens have no intrinsic value. When farming, users are credited with platform tokens, to which they provide liquidity by lending their digital assets (other tokens). Large holders who own a significant share (stake) of a certain cryptocurrency get the right to validate (confirm) transactions in the proof-of-stake blockchain of this cryptocurrency, for which they receive a reward similar to miners in proof-of-work networks. In the case of staking, we are not talking about tokens, but about cryptocurrencies. It is often confused with staking, but they are completely different phenomena. Most of the top DeFi coins hype has to do with farming. Farming is only a small part of what DeFi technology allows you to do. If you need a project for long-term investment, then you should give preference to projects that are supported by a worthwhile and finished product or based on DeFi technology, rather than farming. If there is a high probability of losing money: either the token will not increase in price, or all holders will start selling tokens en masse, lowering its price lower and lower. You should not invest in projects that are aimed exclusively at farming and do not have a quality product under them. As a result, the project dies and leaves the market. They also sell tokens at the peak price, reducing the rate of the coin. In this case, investors who have invested before the project launch can earn on DeFi tokens. Then, in the first hours or days, when the price is pumped up to the limit, they sell their tokens and get huge profits.Within a few days, the project is on the decline. As a result, most of the assets end up in the hands of the founders of the project, and they inflate the price of the token using farming. They are specially released under the farming mechanism, when there is a certain pre-mining for the founders of the project. Most of the DeFi coins that are being created today by the dozens are made, as they say, on the knee. What Best DeFi Coins Are Worth Investing in? This includes all stablecoins, cryptocurrency wallets, smart protocols, infrastructure solutions, services, networks, prediction markets, marketplaces, dapps, landing platforms, validators in PoS networks that implement staking, and various financial instruments implemented on the blockchain. Decentralized finance sector includes under a hundred different tokens associated with DeFi systems. Today, DeFi includes projects of various types, and this is already a fairly large cap market interesting for regulators. However, in some cases the risk does pay off. And all because most of the created tokens, unlike Bitcoin and other established cryptos, do not have enough liquidity and are designed to quickly collect money from investors and disappear for good. Dozens of new coins appear daily, 90% of which may cease to exist in the next few days. The DeFi tokens boom in the financial cryptocurrency market continues. The excitement and hype make it difficult to see the real essence of most DeFi projects. The market is filled with innovative projects-experiments. What is DeFi? The DeFi coins craze is very reminiscent of the events around the 2017 ICO.
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