what is farming and why is it even needed

if staking is when you simply hold coins and earn interest, then farming is more like renting out liquidity. roughly speaking, you provide a pair of coins to a pool (for example, USDT and BNB), and the platform uses them for exchanges. you are rewarded for this

most often, farming is done on decentralized platforms like PancakeSwap, Uniswap, Venus, etc. but there are also centralized options - on Binance, for example, there is a section called Simple Earn or Farming

income can be higher than in staking - from 10% to 50% per annum, sometimes more. but the risks are higher. the main one is impermanent loss (this is when one of the tokens changes significantly in price, and in the end, you receive less than if you had just held them separately) plus you need to keep an eye on fees, especially in networks like Ethereum if briefly - farming is suitable for those who already understand something in the topic. beginners are better off starting with staking or at least with farming on centralized platforms, where everything is simpler $BTC $ETH #SpotVSFuturesStrategy