Best Yield Farming Crypto Platforms – How to Yield Farm Crypto in 2022

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Yield farming is a strategy that investors use to generate passive income on cryptocurrencies. It allows you to earn interest on your digital assets by providing liquidity, or engaging in lending or staking.

This guide provides a detailed analysis of the best crypto yield farming platforms for 2022, alongside an overview of how this passive investment scene works.

#1 Yield Farming Crypto Platform – AQRU

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  • Easy-to-use crypto staking platform and exchange
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The Best Yield Farming Crypto Platforms – Top Five Yield Farming Crypto Platforms in 2022

If you are in search of the best yield farming crypto platforms that the market has to offer- consider the five providers listed below:

  1. AQRU – Overall Best Yield Farming Crypto Platform for 2022
  2. eToro – Regulated Platform Offering Good APYs on Cryptocurrencies
  3. Gemini – One of the Best Yield Farming Crypto Platforms for Safety
  4. Binance – Top Yield Farming Crypto Platform with 60+ Digital Assets
  5. Crypto.com – Generate High Yields on Stablecoins

You will find detailed reviews of the above platforms in the next section of our guide.

Best Yield Farming Crypto Platforms Reviewed in Full

Over the last couple of years, there’s been an influx of platforms that facilitate crypto yield farming services. However, each platform varies in what it offers in terms of interest rates, supported assets, and lock-in conditions.

Here is our rundown of the best yield farming crypto platforms in the market right now.

1. AQRU – Overall Best Yield Farming Crypto Platform for 2022

AQRU is a user-friendly platform that lets you profit from your cryptocurrency holdings in a straightforward manner. It offers you an attractive yield of 7% on Bitcoin and Ethereum by lending your tokens out to those seeking credit.

You can also deposit stablecoins such as USDC, USDT, and DAI and earn as much as 12%. Interestingly, AQRU removes unnecessary financial and crypto terminology from its platform, allowing you to understand yield farming effortlessly.

AQRU also lets you track your earnings in real-time through an integrated dashboard. In fact, you will be able to see how much interest you have accumulated as each second passes.

Moreover, if you do not own any supported cryptocurrencies, you can fund your account in British pounds or euros, and simply choose to convert them to a digital asset directly on the platform.

To get started, you will need to make a minimum deposit of €/£ 100 (or it’s equivalent in crypto).

AQRU

It is also possible for you to withdraw your returns in cryptocurrency or in fiat money. This, however, involves paying a transaction fee of $20 from your end.

Another disadvantage to consider is that AQRU only supports five digital assets – which might be severely limited for those who have an extensive and diverse crypto portfolio.

Moreover, it is also important to remember that AQRU is a custodial provider – so you will be handing over the control of your funds.

With that said, if you are an institutional client, you will have the option to choose between custodial and non-custodial services. In order to add more safety to your funds, the platform retains wallet insurance by Fireblocks.

Regardless, AQRU allows you to withdraw your earnings at any time without any lock-in requirements. It also comes with a handy mobile app that makes it easy for you to monitor your crypto investments on the go.

Pros

  • High interest rates offered
  • Earn a yield on stablecoins and cryptocurrencies
  • Wallet insurance by Fireblocks

Cons

  • Limited number of cryptocurrencies supported
  • Requires KYC

Cryptoassets are a highly volatile unregulated investment product.

2. eToro – Regulated Platform Offering Good APYs on Cryptocurrencies

In the world of cryptocurrencies, it can be challenging to find a platform that is regulated by top-tier financial authorities. And eToro is one of the few that offers this much-needed safety net.

Crucially, eToro is a top-rated broker is licensed by the SEC, FCA, ASIC, and CySEC. Now, while eToro lets you buy and sell digital assets with ease, it does not support conventional yield farming services.

However, the platform does offer automated staking tools that let you earn passive interest on your crypto assets.

eToro’s staking services are available for Cardano, Tron, and Ethereum, and you will receive 75% of the monthly staking yield as a reward. You can get up to 95% by signing up to eToro’s loyalty program. Your returns are calculated automatically and will be added to your account every month.

eToro best yield farming platform

You also have the option to opt-out of the staking program whenever needed since there are no specific lock-in periods involved. This way, eToro lets you access your digital assets whenever you need, unlike the majority of staking platforms.

Another reason we like eToro for yield farming is that it offers you safe and low-cost brokerage services.

If you are a beginner, you can try the demo account to practice investing in cryptocurrencies using paper money. Not only that, it also offers free wallet services so that you do not have to worry about where to store your digital assets.

You can start purchasing more than 40+ supported tokens from just $10 and if you want to diversify your crypto portfolio, eToro also supports Copy Trading and Smart Portfolio services.

Pros

  • Heavuly regulated
  • No lock-in periods
  • Low-cost brokerage services
  • In-built wallet

Cons

  • Might not suit advanced crypto investors

Cryptoassets are a highly volatile unregulated investment product.

3. Gemini – One of the Best Yield Farming Crypto Platforms for Safety

Gemini is a well-established cryptocurrency platform that offers a wide range of financial services to traders and investors. Not only can you buy, sell, and store your digital assets via this provider, but you can also deposit funds with a credit card.

If you want to yield farm crypto via Gemini, you simply have to move your tokens from your trading account to its interest account. The returns will be added to your balance on a daily basis.

With Gemini Earn, you can get up to 8.05% APY on your cryptocurrencies. Yield farming is supported for over 40 digital assets, which include several DeFi and stablecoins.

However, the highest APY of 8.05% is offered for Gemini’s native token – the Gemini Dollar. This is followed by 7.99% on USDC and USDT. However,  a number of popular crypto assets, such as Chainlink and Zcash, will only get you 0.50% APY.

Gemini best yield farming crypto platform

We consider Gemini to be one of the best yield farming crypto platforms because it lets you redeem and move your assets back into your trading account at any time.

There is no need for you to meet any minimum deposit or withdrawal conditions, and furthermore, there are no transfer or redemption fees involved.

Gemini has partnered with third-party borrowers after vetting each provider through a stringent risk management framework.

Furthermore, Gemini also collects collateral before lending out your assets. Gemini also takes steps to ensure the safety of your funds by holding digital assets in an air-gapped cold storage system. Those held in the hot wallet for transaction purposes are also insured.

Moreover, Gemini is regulated in the US.

Pros

  • Supports 40+ cryptocurrencies
  • No yield farming fees and no lock-in periods

Cons

  • Interest offered on some coins are relatively low
  • High trading fees for buying digital assets through Gemini exchange

Cryptoassets are a highly volatile unregulated investment product.

4. Binance – Top Yield Farming Crypto Platform with 60+ Digital Assets

Binance has built a full-fledged crypto ecosystem that offers a plethora of services, including a number of different ways for you to earn yields on your digital assets. You can open a crypto savings account, deposit your assets for staking or choose to invest in a liquidity pool.

As you can imagine, how much you earn will depend on your chosen token, the lock-in period, and current market conditions.

For instance, suppose you want to earn returns on the Axie Infinity (AXS) tokens that you are holding. If you choose a fixed staking account, you will get an APY of 104.62% for 90 days.

If you choose a savings account instead, then the rewards are reduced to 50% for a lock-in period of 15 days. A flexible savings plan will further bring down your returns to 20%.

Binance

You can also choose to invest in a liquidity pool. For the AXS/USDT pair, Binance is offering a return of 14.88%, including fees at the time of writing.

If you are to choose a less liquid pair such as ALPINE/USDT, the yield will also be higher, which stands at 222.93% as of writing.

As you can see, Binance has several options laid out for you, but oftentimes it takes a trained eye to balance the risks and rewards involved.

Moreover, Binance stands out as one of the best yield farming crypto platforms because it supports over 60 digital assets.

You can also use Binance to exchange your tokens for cryptocurrencies that offer higher returns, or you can directly purchase digital assets with fiat money.

Pros

  • Different types of crypto interest accounts
  • High interest rates offered
  • Supports 60+ cryptocurrencies

Cons

  • Flexible terms not offered for all cryptocurrencies
  • The number of earning options can be confusing for beginners

Cryptoassets are a highly volatile unregulated investment product.

5. Crypto.com – Generate High Yields on Stablecoins

Crypto.com is another platform that offers multiple ways for you to earn yields on your cryptocurrencies. The first is to open an interest account – which can yield returns as high as 14.05%. This APY, however, will depend on your chosen asset as well as the lock-in period you select.

For example, on USDC, you can earn 10% if you select a fixed duration of three months. On the other hand, if you opt for a flexible plan, the APY drops to 6%.

The returns available for other coins such as Bitcoin are relatively lower, between 1.5% to 4% – which is why we suggest Crypto.com as one of the best yield farming crypto platforms for those who hold stablecoins.

On top of this, if you have any CRO tokens, you will also be able to increase your APY. This, yet again, depends on how many CRO coins you hold.

On top of this, Crypto.com has a separate DeFi platform that lets you earn interest on your digital assets directly from your wallet. This comes in the form of an app downloadable to your mobile device.

At the time of writing, this service is offered for over 35 coins – which includes Yearn Earn V2, Compound, Aave, and Cosmos.

On the network’s native token CRO, you can get returns as high as 16.02% annually. This will be added to your wallet directly and does not require any lock-up period requirements.

Aside from yield farming services, Crypto.com also offers trading and exchange tools, and even crypto-backed debit cards.

Pros

  • Different types of earning accounts
  • Earn interest on DeFi and stablecoins

Cons

  • Low interest rate for popular cryptocurrencies such as Bitcoin
  • 2% APY paid in CRO for higher interest rates

Cryptoassets are a highly volatile unregulated investment product.

What is Crypto Yield Farming?

When looking for the best yield farming crypto platforms, you should first understand what the concept is all about.

In simple terms, yield farming involves lending your digital assets on crypto platforms. In return, you will get paid a rate of interest on the funds you invest.

To understand the concept better, you can compare yield farming to a traditional savings account.

  • When you open a savings account with a financial institution, they lend out your funds and pay you back with interest.
  • In crypto yield farming, you will be depositing your digital currencies instead of fiat money.
  • In doing so, you will provide liquidity to the chosen platform and earn rewards.

In essence, you will be serving as a liquidity provider, making it possible for other users of the platform to lend, borrow, and trade cryptocurrency. This strategy is especially good if you have idle digital assets stored in your wallet.

The Fundamentals of Crypto Yield Farming

When you engage in crypto yield farming, you are essentially depositing your assets into a third-party platform – which will be added in the form of smart contracts to liquidity pools.

  • The liquidity pools, in turn, drive marketplaces that enable users to trade, borrow, or lend digital tokens.
  • In doing so, you become a liquidity provider and thus – will get rewards in the form of interest or fees generated by the underlying platform.
  • Yield farming became a popular concept because newly emerging DeFi protocols require additional levels of liquidity to offer its users seamless market conditions.

Before proceeding further, let us explore some of the common terms that you will come across in your search for the best yield farming crypto platforms.

Annual Percentage Yield (APY)

APY is the annual rate of interest that you earn as a reward by making your cryptocurrencies available for yield farming.

Even on the best yield farming crypto platforms, the APY for a specific asset is dictated by a number of variables.

Here is what you need to bear in mind:

  • As we covered earlier, there are several factors that determine the APY of your chosen digital asset – such as the cryptocurrency, lock-up period, and more.
  • The key to remember is that on the majority of DeFi platforms, the coins with the least liquidity are likely to get you higher APYs.
  • In fact, on such tokens, you can even secure triple-digital yields. For example, for the BTC / ALPINE pair, Binance offers a yield of 237.13% at the time of writing.
  • At the same time, a pair such as BTC/ETH is only offered at an APY of 1.44% on Binance, because both these are large-cap tokens.

As you can see, crypto pairs that already have sufficient liquidity will offer you much lower returns.

Receiving Tokens

The majority of yield farming crypto platforms offer you interest in the same digital currency that you invested in. However, this isn’t the case everywhere.

For example, we mentioned that Crypto.com pays up to 14.05% APY on stablecoins such as USDC. However, 2% of this interest is paid out in CRO coins – which is the native token of the platform.

Crypto.com how to yield farm crypto

This is one aspect that you should check when choosing the best yield farming crypto platforms for your digital assets. You can also consider diversifying and yield farming crypto with multiple providers in order to make the most of the many services on offer. 

Flexible vs Locking Up 

Another aspect that you might notice is that when you lock up your digital assets for a fixed period, the returns offered tend to be higher.

For example:

  • Crypto.com offers a yield of 6.5% on Ethereum for a three-month lock-up period.
  • On a flexible plan, you will get only 4.5% for the same ETH coins on Crypto.com

However, before you opt for a plan with a lock-in period, you won’t be able to retrieve your digital assets until the said duration concludes.

Frequency of Interest Payouts

When looking for the best yield farming crypto platforms, you should also make it a point to find out how often the interests will be paid out.

  • On Binance, the interest from flexible savings products is distributed directly to your account on a daily basis.
  • This allows you to accrue the compounding interest and get higher returns.

That said, if you choose an account with a lock-up condition, you will receive your returns only at the end of the respective term. Until then, you won’t have access to your principal investment or your interest.

Crypto Yield Farming vs. Staking – What’s the Difference?

Yield farming and staking have a few striking similarities; however, these are distinct in their own ways.

Understanding the difference is essential to figure out how you want to approach your crypto passive income strategy.

  • When you choose a yield farming account, your crypto assets are deposited into a smart contract – which is then distributed into a liquidity pool or for other purposes such as lending.
  • On the other hand, if you sign up for a crypto staking account, you are depositing your funds directly into the respective blockchain network.
  • Yield farming also gives you the flexibility to earn returns on practically any cryptocurrency.
  • However, when staking, you will have to choose a token that uses a proof-of-stake mechanism.

While both approaches come with upsides and downsides, staking does not expose crypto investors to the same level of risk as that of yield farming. For instance, your assets will be locked on a blockchain network and not a smart contract developed by a third party.

In fact, some of the best yield farming crypto platforms we mentioned in this guide let you collect returns via staking. However, this also means that the returns you get from staking are often far less than what you would get from yield farming.

That said, it is up to you to decide which strategy is suited for you based on your risk appetite.

Crypto staking has become a profitable and growing industry in itself. The best crypto staking platforms allow users to turn their crypto holdings into cash with just the click of one button, giving them profits that are not only steady but also substantial when considering how little effort it takes on your part!

How to Start Yield Farming Crypto?

If you are thinking of opening an interest account to earn passive income on your digital assets, then AQRU is one of the best platforms to consider.

Here is a walkthrough of how the process works at AQRU.

Step 1: Open an Account

You can begin by creating an account with AQRU via its website. You will find a ‘Sign Up’ button that you can use to start the registration process.

How to take crypto loan via AQRU

After entering your email address and password, AQRU will send a confirmation email. Before proceeding, you will also have to verify your identity.

This can be completed by uploading a copy of your government-issued ID.

Step 2: Deposit Cryptocurrency or Fiat Money

The next step is to add funds to the platform. If you already own one of the supported assets, you can simply transfer them from your private wallet.

Alternatively, you can also deposit a minimum of €/£ 100 and make an investment into your chosen digital assets once the funds arrive. 

Step 3: Earn Interest From Crypto Loans

After you have selected your chosen digital asset and made the investment, AQRU will automatically start paying you interest. If you have chosen a stablecoin, you will earn 12% and for Bitcoin and Ethereum, the returns stand at 7%.

Crypto loans are becoming increasingly popular as more people invest in digital assets.

Risks of Crypto Yield Farming

Although yield farming lets you earn highly attractive returns on your digital assets, it requires you to pay close attention to several factors. After all, a strategy that gets you above-average rewards is likely to come with substantial risks.

Therefore, when choosing the best yield farming crypto platforms, you should be aware of the following risks associated with this passive-earning strategy.

Impermanent Loss

Even the best yield farming crypto platforms do not have control over the volatility of digital assets. When the market price of tokens fluctuates greatly, you might experience losses from this strategy.

For example:

  • Let’s suppose that you invest $100 worth of a digital asset – which offers a 60% yield per year.
  • This means that at the end of the year, you will have $160 instead of $100.
  • However, if the value of your chosen asset is to fall by 50%, then the total value of your investment is worth less than you originally started with.
  • In other words, the market value of your entire investment would be worth just $80.

In simple terms, the value of your digital assets could rise or fall while it is held in a yield farming smart contract. These gains or losses will become permanent if you withdraw your coins.

Credibility of the Platform

There are plenty of online platforms out there that offer interest on deposited cryptocurrencies. If you choose a centralized site such as AQRU or eToro, you are handing over the safety of your assets to these providers.

Put otherwise, although will have to rely on the aforementioned platforms to keep your funds secure  – both AQRU and eToro are legitimate and trusted providers.

eToro

On the other hand, the majority of platforms that offer high yield farming rewards are decentralized, meaning, they are not regulated. These providers use smart contracts which are supposedly unchangeable – however, that is only until a hacker finds a way to exploit potential security loopholes and vulnerabilities.

In other words, regardless of whether you choose a centralized or decentralized platform, it is crucial to understand that when you hand over your assets to a third party, the safety of your funds is never 100% guaranteed.

Crypto Rug Pulls

There are many new projects emerging in the DeFi space. Unfortunately, not every network is launched with good intentions.

Rug pulls happen when someone develops a new crypto token, only to pump up the price and pull out the value before abandoning the project. In other words, it is an exit scam with the sole purpose of theft.

As an investor, if you choose a token or a DeFi project that happens to be a rug pull, you stand the risk of losing your funds. This is why you need to research the market thoroughly before making an investment.

Best Yield Farming Crypto Platforms – Conclusion

Generating returns on your cryptocurrency holdings through yield farming might come across as an easy way to earn passive income with your digital assets. However, before you adopt this strategy, it is best to spend some time researching the many different platforms in the market.

In order to reduce the risk, you might consider diversifying your funds into several of the best yield farming crypto platforms that we have discussed on this page.

If you want to go one step further, it might also be wise to choose plans without no lock-up periods – so that you can access your assets at any time.

1
€100Exclusive promotion
Our score10
  • Easy-to-use crypto staking platform and exchange
  • Assets are insured with a $30 million insurance policy
  • Offers investing for cryptocurrencies and stablecoins

FAQs

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.