Invest in Yearn.finance – How to Invest in Yearn.finance for Beginners
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Yearn.finance has grown to become a notable protocol in the decentralized finance (Defi) space – owing to its commitment to simplify the crypto sector for investors. The protocol leverages automation to provide investors with an opportunity to make profits through yield farming.
To help you understand how to invest in Yearn.finance, we have prepared this comprehensive guide – where we discuss the steps involved and the best brokers to use. You’ll also understand the risks that come with investing in Yearn.finance and how to manage them.
Table of Contents
#1 Broker to Invest in Yearn.finance – eToro
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How to invest in Yearn.finance – Choose a Broker
The cryptocurrency industry is home to several platforms where you can invest in Yearn.finance. However, before opening an account with your chosen provider, you need to explore metrics surrounding fees, regulation, payments, and customer service.
Therefore, if you’re considering investing in Yearn.finance in the US, below are the best platforms for you to consider.
- eToro – Overall Best Broker to Invest in Yearn.finance
- Coinbase – Beginner-Friendly Broker to Invest in Yearn.finance
- Kraken – Great Place to Invest in Yearn.finance
The above brokers made it into this list following our strict assessment of their services in terms of security, supported markets, payment options, fee policy, and user-friendliness.
How to Invest in Yearn.finance – A Quick Guide For 2021
If you’re already familiar with the cryptocurrency space and only need a quick guide on how to invest in Yearn.finance in the US, this section is for you.
All you have to do is to follow the steps below and you’ll be able to invest in Yearn.finance in under five minutes.
- Step 1: Create an Account with eToro – A heavily regulated broker like eToro offers you security when investing in Yearn.finance, so we’d suggest you choose this option. To get started with this broker, visit the website, sign up, and complete the registration steps.
- Step 2: Upload a Valid ID – Since eToro is regulated by the SEC, all users must complete a Know Your Customer (KYC) process. You can do this by providing the broker with a copy of your government-issued ID.
- Step 3: Deposit Funds – To invest in Yearn.finance, you must first fund your eToro account. As a US investor, the minimum deposit you have to make is $50 and you can do this through a debit/credit card or online banking for free.
- Step 4: Invest in Yearn.finance – This is the final stage, where you type the token’s name into the search box. When the token appears in the result tab, click ‘Trade.’ This will take you to the page where you’ll enter your stake and open your Yearn.finance trade.
These are the crucial steps to follow when investing in Yearn.finance. An advantage of using eToro is that the broker has a simple user interface – so you can navigate all these steps conveniently without making a mistake.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Where to Buy Yearn.finance – Full Broker Reviews
Choosing a broker is perhaps the most important step when you’re contemplating an investment in Yearn.finance. This is because, if you choose the wrong platform, you might end up having a sub-par experience. In the cryptocurrency industry, a bad experience goes beyond a mere feeling of dissatisfaction — it might very well cost you your hard-earned money.
To avoid a situation of this nature, we have examined the market and come up with the top brokers for you to invest in Yearn.finance. For each of these platforms, we considered how secure they are, the available payment options, listed markets, user interface, and of course — fees and commissions.
So, if you want to invest in Yearn.finance in the US, here are the platforms up for consideration.
1. eToro – Overall Best Broker to Invest in Yearn.finance
eToro tops our list as the best broker to invest in Yearn.finance for various reasons. Perhaps the most important of these reasons is that eToro offers you adequate security over your funds. The broker is regulated by the SEC and approved by FINRA, meaning there’s a verified scope of operations by which the platform operates. Additionally, outside the US, eToro is regulated by the FCA and CySEC, indicating that the broker has a global reputation for credibility in the cryptocurrency market.
Consequently, since the broker is authorized by leading financial authorities, you can make payments on the platform through your debit/credit card, which is a swift way to add funds to your account. The broker also provides you with other payment options such as ACH and e-wallets. When you use any of these methods to deposit funds into your eToro account, the broker charges you no fee. This is in addition to the fact that you only need a minimum deposit of $50 to get started.
Another thing we find impressive about eToro is that the broker seeks to make it effortless for beginners to invest in cryptocurrency. First, the broker has a friendly user interface designed – with prompts to help you navigate your way seamlessly. Furthermore, eToro grants you access to a copy trading tool through which you can leverage the experience of other traders to open positions in the market. With this tool, all you need to do is to identify the trader you want to copy and eToro will replicate their future trades in your portfolio.
If you also want to interact with other Yearn.finance investors, the broker has a social platform for that purpose. Interestingly, all these benefits we’ve discussed are not limited to the Yearn.finance market. eToro grants you access to more than 30 other crypto markets in which you can invest. Some of the listed markets include Litecoin, EOS, Chainlink, Cardano, Ethereum, Spark, MANA, and more. With this impressive list of tokens, diversifying your Yearn.finance investment is super easy — as you have sufficient options to choose from.
Lastly, we assessed eToro in terms of fees and commissions. Here, the broker also has a great score, as you can invest in eToro on a spread-only basis. More importantly, the broker’s crypto spreads start at just 0.75%, making it relatively tight when compared against some platforms. For example, Coinbase’s spread can exceed 2% in some cases, meaning the gap between the ‘ask’ and ‘buy’ price you have to cover will be significant.
Pros
- Invest in cryptocurrencies on a spread-only basis
- Minimum investment per trade from just $25
- Supports debit/credit cards, online banking, and local bank transfers
- Regulated by the SEC, FCA, CySEC, and ASIC
- Minimum deposit of $50 and no transaction fees for US citizens
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
Cons
- Perhaps too basic for technical traders
- No support for MT4 or MT5
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
2. Coinbase – Beginner-Friendly Broker to Invest in Yearn.finance
Perhaps a significant factor that makes Coinbase a leading broker in the US is the platform’s user interface. The cryptocurrency industry continues to witness an increase in the number of users each and every day. It’s only right that brokers make it super convenient for newbies to start their trading journey, and Coinbase does just that. Founded in 2012, the broker now has over 68 million users leveraging the platform’s user-friendly interface to access the cryptocurrency markets.
You can invest in Yearn.finance through Coinbase once you create an account. This can be done by visiting the broker’s website and providing the relevant personal information needed to sign up. Following that, you’ll need to verify your identity by uploading a valid ID. Once you’re verified, you can invest in Yearn.finance and also access other products provided by the broker – including custodial accounts, advanced trading, and a wallet. In the same manner, you also gain access to other listed markets such as Ethereum, Chainlink, XRP, Litecoin, and more.
With all these features, you might be ready to choose Coinbase as the broker to invest in Yearn.finance. However, we must inform you that the platform has a low score in terms of fees and commissions. When you invert in Yearn.finance on Coinbase with a debit or credit card, you’ll incur up to 4% of the purchase amount. Meaning, if you invest $2,000 in Yearn.finance, you’d receive just $1,920 worth. This is an issue that will affect the size of your Yearn.finance investment returns, so you have to consider this before joining Coinbase.
Pros
- One of the most popular cryptocurrency exchanges
- More than 68 million users
- Supports instant debit card purchases
- Dozens of digital currencies to choose from
- Institutional-grade security practices
Cons
- Debit card deposits are expensive at 3.99%
- You will pay a standard trading commission of 1.49%
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
3. Kraken – Great Place to Invest in Yearn.finance
With more than 50 cryptocurrencies listed on Kraken, you have a wide list of options to choose from if you’re looking to diversify your Yearn.finance investment. These listed markets include both crypto-crosses and fiat-to-crypto pairs. Getting started with investing in Yearn.finance on Kraken is convenient — as you simply need to create an account and complete the KYC process. The exchange, however, notes that there will be a 72-hour withdrawal hold after your first deposit.
Additionally, the platform also charges you 0.5% when you make a deposit into your account. Although this fee is moderate and competitive, eToro offers you the same service for free. Additionally, if your 30-day trading volumes fall under $50,000, this means that you’re not a large-scale investor on Kraken. In that case, you’ll pay commissions of 0.26% per slide. Nonetheless, Kraken has a simple user interface that makes it easy for you to invest in Yearn.finance.
Lastly, when investing in Yearn.finance on Kraken, you must know that the platform doesn’t offer a secure wallet for you to store your tokens. Therefore, you’ll need an external wallet where you’d move your Yearn.finance coins. This is a stressful process, as you’ll also have to transfer the tokens back to the broker before you can sell them. Additionally, the tokens might be susceptible to hacking once the transfer process is complete. This is a major challenge concerning this platform that you should note.
Pros
- Popular cryptocurrency exchange and broker
- Great selection of cryptocurrencies
- Supports both crypto-cross and fiat-to-crypto pairs
- Accepts debit/credit cards and bank transfers
- Offers complex crypto instruments for experienced traders
Cons
- Not all US states are supported
- Fees are somewhat pricey
at eToro, #1 Broker in the US
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
How to Invest in Yearn.finance – Detailed and Explained in Full
In the earlier sections of this guide, we highlighted some quick steps through which you can invest in Yearn.finance in the US. However, that might not be sufficient if you’re new to the cryptocurrency scene. Therefore, in this section, we provide a more comprehensive walkthrough on how to invest in Yearn.finance using a regulated and low-cost crypto broker like eToro
Step 1: Create an Account to Invest in Yearn.finance
You can open an account with eToro by visiting the broker’s homepage and clicking the ‘Join Now’ button. The sign-up process will require you to choose a username and a password. Additionally. while signing up, you’ll have to provide some personal information including your full name, home address, and more.
Furthermore, to provide you a personalized experience, eToro will ask you some questions to evaluate your investment experience and determine the right trading services you need. Another standard procedure with the broker is the provision of your telephone number, where eToro will send you a PIN to verify your account.
Cryptoassets are highly volatile unregulated investment products. Proceed at your own risk.
Step2: Upload a Valid ID
As a broker regulated by the SEC, eToro must comply with KYC laws. Meaning, all users on the platform must verify their identity before they can proceed to invest in any token.
- Therefore, if you haven’t provided eToro with an ID issued by the government, the broker will place certain restrictions on your account that will prevent you from investing in Yearn.finance.
- For this purpose, you can upload your driver’s license or passport.
- Furthermore, you’ll also have to provide a document that validates your home address, such as a utility bill or a bank statement.
After fulfilling these requirements, the broker will verify your account within a few minutes and you’ll be able to use your debit/credit card to invest in Yearn.finance.
Step 3: Deposit Funds into Your Account
You need to fund your account before you can proceed to invest in Yearn.finance. As an investor from the US, you simply need to add a minimum of $50 to your account. This small minimum deposit is ideal if you are looking to invest in cryptocurrencies in a low-risk manner.
On eToro, you have different payment options to use including ACH, online banking, and debit/credit cards. The good thing here is that when you add funds to your account using any of these options, you will incur no deposit fee. We consider this impressive because, on some crypto brokers, you can be charged up to 5% when you make payments through your debit/credit card.
Step 4: Search for Yearn.finance
Here, all you have to do is to enter ‘Yearn.finance’ into the search box. You’ll get a list of options out of which you’ll find ‘YFI.’
Click to trade the ‘YFI’ option and the system will take you to the next and final stage.
Step 5: Open Your Yearn.finance Investment
Once you’re on the order page, you’ll find the relevant box for you to enter your stake. You can decide to stick with the minimum required stake, which is $25.
Once you’ve entered your stake and confirmed your details, the last thing to do is to click ‘Open Trade.’ Once you do that, the broker will execute your order and you’ll get the equivalent number of YFI tokens to the stake you entered. Since you’re investing in Yearn.finance with eToro, you can use the broker’s in-built wallet to store your tokens.
How to Sell Yearn.finance Tokens
To make a profit from your Yearn.finance investment, it’s crucial to understand how you can sell the tokens. For example, if you invest $2,000 in Yearn.finance and the token rises by 20% shortly after opening the trade, your portfolio would now be worth $2,400.
Therefore, if you want to cash out your investment, you have to know how to initiate a sell order. eToro allows you to do this swiftly and securely from within your account.
- Since eToro has an in-built wallet, your tokens would are stored there.
- This allows you to sell the tokens in a secure manner — as you can create a direct sell order.
- To sell your Yearn.finance tokens, visit your portfolio on eToro.
- Find the ‘Sell’ button and click on it.
- Ensure you choose a market order so that the broker sells your tokens immediately.
- Within a few seconds, your cash balance will reflect the sale.
Your funds will be in your account until you decide your next step, whether to reinvest the money or to withdraw your funds.
Ways to Invest in Yearn.finance
The cryptocurrency industry has grown to exponential heights in recent years, so you can expect that there are different ways for you to invest in Yearn.finance. To get a satisfactory service, it’s important to know the relevant features that the right broker should possess.
Therefore, when assessing an investment platform for this purpose, one of the things you want to consider is security. Investing in Yearn.finance using a regulated broker means your funds enjoy some level of protection.
So, in this section of our guide, we discuss the best ways to invest in Yearn.finance.
Invest in Yearn.finance Using an Online Broker
A crucial reason for choosing a broker is that you get security over your funds. Most brokers are authorized by leading financial authorities, making them credible platforms. For example, eToro is approved by both the SEC and FINRA, meaning you get to be in the regulator’s safety net when you invest in Yearn.finance through this platform.
- Being an SEC-regulated broker, eToro positions itself as a credible platform in the market.
- Furthermore, since eToro enjoys the approval of FINRA, this means you can make payments through your debit/credit card, which is a swift option to add funds to your account.
- Lastly, as a regulated broker, eToro is mandated to disclose its fee policy. Meaning, the broker cannot charge hidden fees.
Another perk of investing in YFI tokens via eToro is the in-built wallet that comes with the broker. As such, you can safely store your Yearn.finance tokens in the wallet until you are ready to cash out. In the same manner, you can sell them directly from the wallet once you’re ready to do so.
Invest in Yearn.finance Using a Cryptocurrency Exchange
Some investors find cryptocurrency exchanges appealing because some of these platforms often have a notably low fee structure. For some users, what draws them close to these exchanges is that they can trade assets anonymously since there are no KYC requirements in place. However, after a careful evaluation of these exchanges, you’d realize that the absence of regulation behind these platforms means you enjoy no protection over your funds.
This is in addition to the fact that you cannot make payments through US dollars – since the platforms aren’t recognized by relevant financial bodies. Furthermore, in order to use these platforms, you must understand how to perform crypto-to-crypto exchanges. This might be convenient for an expert in the cryptocurrency space.
But, due to the complex nature of crypto-to-crypto exchanges, a beginner might make mistakes easily — and this can adversely affect your Yearn.finance investment. This is why we would argue that a broker like eToro is your best option when investing in Yearn.finance – since you can add funds to your account with US dollars and enjoy a safe and regulated environment.
Should I Invest in Yearn.finance?
As a beginner in the cryptocurrency industry, you need to understand how to make investment decisions beyond the hype around tokens. First, you must know that the cryptocurrency space is characterized by risk. Secondly, you need to ensure you perform adequate research before investing in Yearn.finance.
However, you might not know the features to look out for when researching crypto assets, so in this section, we have discussed some of the things you might want to consider before buying YFI tokens.
High Yields
One thing that makes Yearn.finance stand out in the market is that the protocol makes it convenient for users to maximize their assets. Yearn.finance is an open-source network designed to move your assets across various pools. This is to ensure that your tokens are constantly in the highest paying pools that will offer you the most favorable returns.
Some of the yield platforms leveraged by Yearn.finance include Aave, Dydx, and Compound. When users deposit stablecoins such as USDT or DAI into Yearn.finance, the protocol converts the assets into Ytokens. These are then shuffled across different farming platforms to generate returns.
Due to this notable use case, Yearn.finance has grown significantly in the market. Therefore, this is a core element of the protocol that you might want to research — since the feature has the potential to impact the token’s value.
Multiple User-oriented Features
You might want to consider the number of features a protocol has. This is because, in most situations, the use cases of a protocol can potentially impact the value of the platform’s token in the market.
- Concerning this, Yearn.finance stands out for several reasons.
- The first feature here is ytrade.finance – through which users can go long or short on stablecoins. This feature also provides users with up to 1,000x leverage to maximize their trades.
- This has attracted thousands of traders to the protocol, making it a leading trading platform in the Defi market.
- Another feature is yliquidate.finance. This feature operates in the form of loans through which users liquidate funds in a super-efficient manner.
- Additionally, the network also has yswap.exchange – which is a feature that makes it possible for users to deposit funds across different Defi protocols.
- Lastly, iborrow.finance is another crucial feature that Yearn.finance leverages to help users access new streams of liquidity in the cryptocurrency industry.
Essentially, all these features create notable traction around the Yearn.finance token, impacting the coin’s value in the market. So, this is an area worthy of consideration during your research of YFI.
Community Governance
An important feature many investors consider when buying a coin is the protocol’s governance structure. Being a community-governed protocol, Yearn.finance ticks this box. As is the case with most Defi platforms, the number of governance tokens you own will determine the power you have concerning the protocol’s decision-making process.
For a proposal to be considered in the Yearn.finance protocol, at least 33% of token holders must consent. This structure democratizes the protocol and ensures all stakeholders contribute to the development of the protocol.
Simplifies the Defi Space
Defi is a growing sector that continues to unfold each and every day. Meaning, there’s a lot of confusion characterizing the space, especially for beginners looking to make a profit from buying Defi tokens. To be able to maximize the Defi space, you must have a comprehensive grasp of the functionalities and relevant standards in the sector. To new investors, not knowing this can hinder how well you get to maximize the Defi ecosystem.
In response to this, Yearn.finance automates most of the processes involved in making profits from Defi, especially the art of staking your tokens in valuable pools. By making this process seamless and super easy, the protocol has positioned itself as an appealing platform for beginners looking to invest in different tokens in the most convenient way. This is a significant use case with the potential of positively impacting the Yearn.finance token in the market.
Risks of Investing in Yearn.finance
When you do your own personal research on cryptocurrency tokens, you can gain a much better understanding of the risks involved. In fact, this is one of the first things you need to understand before you choose to invest in Yearn.finance.
To guide you through this phase, we’ll discuss some of the crucial risks you need to consider before buying FYI tokens in the US.
Notable Competition in the Defi Space
A major feature of Yearn.finance is that the protocol seeks to provide users with high yields over their assets.
- However, there are other platforms such as the Binance Smart Chain, with impressive yield farming applications for generating great returns for users.
- Additionally, instead of leveraging Yearn.finance for high yields, users can choose to deposit their assets directly into lending protocols such as Compound, Dydx, Maker, InstaDApp, and more.
- Although Yearn.finance automates this process, the presence of other options offering similar results creates a competitive environment for the protocol.
Therefore, this is an area you might want to research when evaluating the risk that comes with buying YFI tokens.
Market Volatility
There is also the risk that you enter the Yearn.finance market now – and the token’s price drops shortly afterward. In this case, you’re not to make any rash decision — as price fluctuation is an inherent feature of the cryptocurrency industry.
Therefore, when creating a Yearn.finance investment plan, you should contemplate the possibility of extreme price fluctuations. This will keep you on track when you witness any such occurrence.
Security over Funds
When you’re learning how to invest in Yearn.finance, you must understand the importance of choosing an investment platform that will keep your funds safe.
- Any smart investor understands the importance of choosing a credible platform, as the cryptocurrency industry has witnessed many cases of fund mismanagement or founders walking away with client capital.
- This is why we argue that a regulated broker is your best option when deciding on a platform where you can invest in Yearn.finance.
For instance, a broker like eToro is regulated by the SEC. Meaning, when you invest in Yearn.finance in the US through this broker, you can rest assured you’re using a credible platform.
Managing the Risk of a Yearn.finance Investment
Although you cannot completely avoid risks when investing in Yearn.finance, you can mitigate them. Here are some of the popular strategies for you to leverage.
- As a Yearn.finance investor, doing your own personal research is how you can gain more insights into the token.
- This way, you’d understand the coin’s historical data. Meaning, you can make an informed decision when buying Yearn.finance.
- Additionally, you can invest small amounts at regular intervals. In the investment industry, this is referred to as dollar-cost averaging.
- You might also consider investing in other tokens alongside Yearn.finance.
- This essentially means you’re diversifying your portfolio, which is an effective strategy to absorb price shocks in the market. With a broker like eToro, you have more than 30 other tokens for this purpose.
More importantly, eToro has an in-built wallet for you to store your Yearn.finance tokens safely. This feature saves you from the risk that comes with transferring your tokens to an external wallet – which will require you to safeguard your own private keys.
How Much Does it Cost to Invest in Yearn.finance?
As we’ve earlier established in this How to Invest in Yearn.finance Guide, the fee policy of the broker you’re choosing is an important consideration.
- Therefore, you should consider a broker like eToro – where you can invest in Yearn.finance on a spread-only basis.
- On eToro, the spread is tight — as this starts from 0.75%.
- This is unlike other platforms in this space, where the spread might shoot over 2-3%.
- Furthermore, eToro allows you to add funds to your account for free. This eliminates deposit fees which would have added to the overall investment cost.
From the above, it’s clear that brokers with tight spreads are cost-effective. This is why eToro stands out among other cryptocurrency investment platforms in the market. Additionally, eToro is mandated to keep its trading conditions fair, meaning you’re charged no hidden fees when investing in Yearn.finance.
How to Invest in Yearn.finance – Conclusion
Every cryptocurrency investment decision requires due diligence. So, when you’re contemplating buying Yearn.finance, you must understand the right broker to use and the risks to consider. In this How to Invest in Yearn.finance Guide, we have covered all these factors and more.
Beyond indicating why eToro is your best option to invest in Yearn.finance, we have walked you through the steps involved in buying the token with this broker. As a low-cost and heavily regulated broker with a simple user interface, you can safely invest in Yearn.finance on eToro in under five minutes.
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FAQs
How to invest in Yearn.finance?
Best place to invest in Yearn.finance?
Should I buy Yearn.finance?
How can I safely invest in Yearn.finance?
How do I cash out my Yearn.finance investment?
