1. Staking
What It Is: Locking up your crypto in a blockchain network to validate transactions.
How It Boosts Your Portfolio:
Earn passive income in the form of staking rewards (usually in the network's native token).
Rewards often range between 5-20% APY, depending on the platform and token.
Staking contributes to the security of the network, making your assets productive.
2. Yield Farming
What It Is: Providing liquidity to DeFi protocols (e.g., DEXs like Uniswap or PancakeSwap) in exchange for rewards.
How It Boosts Your Portfolio:
Rewards can include a mix of trading fees and governance tokens from the platform.
High APYs, sometimes exceeding 100%, though with increased risk.
You can compound returns by reinvesting earned rewards.
Risks to Consider
Impermanent Loss in yield farming due to token price fluctuations.
Smart Contract Risks in both staking and farming platforms.
Research the protocol's credibility and audit history to minimize risks.
