Asslamo-alikum to all of my friends of Steem Alliance Community.Is everything is ok? my friends.I'm back on work, after few days of some busy life activities.Today's topic for posting about cryptocurrency is the yield farming in cryptocurrency.It is the beneficial which i will explain and cover all the major points.

Definition:- Yield farming is the one of method to earn the money in cryptocurrency's market, after making some investment.In yield farming, the farmers hold their tokens in the different liquidity pools and provide the liquidity for the validation of transactions, and in return they earn some reward, which is known as yield farming in cryptocurrency.The holding of tokens in the pool is basically our investment in this work for earning money.

If we have cryptocurrency tokens, we hold them in the crypto liquidity pool, which in turn they will validate any transaction with the help of tokens that the farmer hold, he will get a sum reward on the interest rate.The reward he gets is called Yield Farming. It is a little risky, but the benefits are also very high because it does not have to make any special difference and work.Just holding our tokens in any liquidity pool and we can do this on any crypto exchange if we want to do yield farming.

Explanation:- In yield farming, it is that whenever we invest our crypto tokens on holding in the project of Defi, In any liquidity pool, then whatever reward we get in return on the interest rate is called yield farming.Before we have to do that we have to stake our tokens in a liquidity pool on a decentralized exchange.When we stake the tokens, they will provide liquidity in exchange for validating different transactions and Mining is also done with its help, so whatever reward will be in return, we will get as yield farming.

In order to form a holding for yield farming, the first thing to do in cryptocurrency is to select any liquidity pool, after that we have to hold as many tokens of our crypto as we want in it, just like we put it on staking.As a result we will get some reward, this reward we will call yield farming, in this we have our own farm like this it will be a crypto farm in which crypto will be a work and in return we will get a reward. All that will be rewarded is called yield farming, which is also highly beneficial and highly risky.

Whenever a person wants to do yield farming in crypto currency, first of all we put the crypto tokens on the holding and the receipt of the smart contract through the smart contract is received by the user. When the tokens he has hold in the liquidity pool through smart contract, then those tokens are used in the pool and we get some rewards.This is what we call yield farming, which is the reward of all that.

Advantage:- The first advantage of yield farming is that we can generate good income through it, we just have to make our investment and invest our crypto tokens into holdings in any liquidity pool. And we can earn in return, plus the advantage is that they are liquidity pools, they provide liquidity, which in turn is liquidity in crypto, and it's very secure.In addition, high liquidity pools provide more liquidity that makes the market in stable position.

Risks:- Two of the biggest risks of yield farming is that all the investment we make in yield farming can be lost, in addition to the investment in it, that is, those who do through are smart contracts.If the any mistake occurs, the smart contract may break or expire,And if we hold the tokens after buying on high price and sell on low price, it includes these risks.Before doing yield farming it's necessary to read out these risks.

Conclusion:- So friends, that's all about yield farming in cryptocurrency.It is the way to earn money in cryptocurrency after holding the crypto assets in the liquidity pool.It can be beneficial with so many chances of losing risks.I have figured out all the major points.I hope mine all friends will understand about yield farming after reading this post.God Bye!