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Pandayield 101 — Ultimate advice(s) for newcomers

This Pandayield 101 will be a little different from the rest of the series as it will focus on “quotes” from non-newcomers, devs, veteran traders/investors, and Pandayield core community members.

Overall the advice was especially focused on #DYOR.

Invest some time in looking for information

Information on Yield Farming

Marius’s very own questions to start:

  • What is yield farming? / What forms-use cases of yield farming exist?
  • How does yield farming work?

JayMix has two main things for any starter to learn:

  • How to add token?
  • How to remove liquidity (or import)

Tak K especially emphasizes “Understanding the nature of inflationary token at yield farming.”

Yield farming is definitely not as glamourous as what it looks like. That’s why there were lots of advice directing toward risks.

“For starter, I would always start with risk and the downside. Because most people getting into crypto as a get-rich-quick dream. It might put them off at the beginning but at the end of the day, honesty is the best policy and people will appreciate that in the due time.” Tak K

Cro’s advice is to get a basic notion on DeFi and Yield farming like the risks, the pros and cons, etc.

(Without the basic) “it’s like throwing yourself into an ocean next to an island, but you don’t know how to swim.” Cro

Marius has these questions for you:

  • What are the risks of yield farming?
  • Rugpulls, impermanent loss, etc
  • How can you protect yourself against any of the risks?

Marius added these risk management tips:

  • Begin with an amount that feels right, and if all losses (worst case) is affordable
  • Take provides now and then
  • Investigate the team’s trustworthiness (how active are they, are they regularly engaging with the community/investors, do they communicate and discuss future plans. do you see regular updates to the product, etc.)
  • check whether the yield platform has been audited and read through the audit report to determine how secure it is

“Be aware that high percentage equals maximum risk, low percentage equals risk mitigate. By going toward new yield farms and high percentage, newcomers risk 1. Rugpull and 2. decrease (loss).” Crypton

Join the platform’s community to get all the important news

As Kenny said: “contribute to the community”.

It’s definitely essential advice, as the more you contribute, the more you will learn and understand about a project. Daily interaction with the team will lead you to understand the vision and the mindset. Basically, judging if a project and the team that carries it is trustworthy, capable, or not.

Join a community, crypto-related in general or yield farming in particular, as 100 projects are getting released daily, you won’t have time to check on each one’s legitimacy. — Cro

Technical advice

Kenny would go for “compound at least once daily.

It’s recommended that they stake their reward for a period of time, especially at the early phase of a project, for a few months before thinking of booking profit. Tak K

APY/APR. Don’t just follow the number and ape in without understanding what it is and how to calculate it. You might get frustrated simply because of false expectations, and even worse, fall for scam and rugpull just blindly following the APY/APR number. Tak K

Our head dev very own technical advice:

Compound smartly, and if you’re ok with risk, go for LPs with high APY.

Last words

Don’t let the term “impermanent loss” scare you, as long as the coin’s values are going up, you’ll be in profit at the end of the day and farming adds to it. Mr. Bates

Investing in crypto is exactly like investing in anything in life. You want to do your due diligence before putting a penny down. And most important of all, invest in yourself first. If you don’t understand any of the above, it’s probably a better idea if you follow a project, watch it perform, ask questions in TG/Discord to learn about it before committing your hard-earned money. There is no easy money, even in crypto. Tak K

You need to buckle up your heart and don’t let your emotions take control over your actions so sometimes being in a community and talking will allow you to take a step back and be objective, it’s entertaining, and it’s nice (…) as we are on the same boat, sharing our excitement and disappointment. Cro

Pandayield 101 is a series of educative articles produced by Pandayield.com to guide newcomers into DeFi and Yield Farming universe.

Join a dynamic community on the official Telegram!

Earn BBOO today on Pandayield.com!

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Pandayield

The most beloved AMM- Yield farming platform on Binance Smart Chain