6 Best Yield Farming Crypto Platforms in November 2024 for US Traders

Crypto yield farming seems to be the latest buzz in the crypto sphere as a ton of investors and developers look to build the next best yield farming platforms. Being able to earn passively through the top yield farming platforms can jumpstart your crypto compound earnings.

In this guide, we’ll go through and review the best crypto yield farming platforms by going through key features and metrics. We’ll also take a look at beginner yield farming crypto platforms and some leveraged yield farming platforms as well.

What is Crypto Yield Farming?

Yield farming is the process of allocating your cryptocurrencies in the most optimal places to let you earn more crypto. Allocating your cryptocurrencies can be better understood as choosing which cryptocurrencies in particular you  would want to move and how much of it would you arrange. Deciding where to optimally place your cryptocurrencies to earn yield is when you’d want to find the best yield farming platforms.

There are several different methods for crypto yield farming. Some of them are:

• Providing liquidity for crypto exchanges
• Borrowing and lending crypto
• Staking cryptocurrencies
• Holding coins with redistribution fees

How does Crypto Yield Farming Work?

Each method of yield farming works and earns differently from others. The crypto earning products in the top yield farming platforms we reviewed usually hold your cryptocurrencies to earn through one or more of the yield farming methods.

Placing your cryptocurrencies in these centralized platforms gives you the advantage of fast transactions, an easy-to-use interface, and some insurance and securities if those platforms offer it. However, since you’ll be handing out your cryptocurrencies to these exchanges, you relieve a lot of control over those crypto assets.

If you want to earn by using some of the decentralized finance (DeFi) best yield farming platforms, then it’s important to know exactly how some of the yield farming methods work. If you want to provide liquidity to a decentralized exchange (DEX), you can be an investor that supplies coins and tokens in return for a very small fee of all the trades happening on the platform.

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

Borrowing and lending cryptocurrencies, on the other hand, are two significant functions for yield farming crypto platforms. Many borrowing and lending services provide rewards for those who lend their crypto to the platform.

As for borrowing, you can earn a lot through leveraged yield farming platforms that let you borrow crypto which you can then invest in and earn substantially when the price rises.

Crypto Yield Farming Explained – The Basics

By understanding some fundamentals of crypto yield farming, you can better choose the best yield farming platforms and leveraged yield farming platforms for you.

Let’s go through some of the terms and key ideas that will give you a better grasp of yield farming crypto.

APYs

Though there might be many different ways of yield farming, the best way to compare earnings from different yield farming approaches is through the annual percentage yield or APY. APY is basically the compounded version of annual percentage return or APR.

Generally, you’d see the best yield farming platforms hold high APYs. Note that because APY is compounded, meaning rewards are added to the principal amount depending on the distribution frequency. For example, lending 100 USDT at 12% APY will earn 12 USDT in a year.

Yield Farming Pairs

When yield farming by providing liquidity to a decentralized exchange, two cryptocurrencies need to be added to the liquidity pool. These are known as yield farming pairs which the liquidity pools use so that other users can swap one of the cryptocurrencies for the other.

As an example, let’s look at the BNB and USDT yield farming pair on the PancakeSwap DEX. If you place $100 worth of BNB and $100 worth of USDT, you’ll earn a small percentage share of the pool. Around 0.17% of all swaps of BNB and USDT on the liquidity pool are split across investors and are paid in the CAKE LP token. You can then further stake the CAKE tokens you earn more.

Reward Coins

By either providing liquidity or holding coins that have redistribution fees, you can earn reward coins as a form of yield farming. This is important to understand when finding some of the best platforms for yield farming since it can dictate your compounded earnings.

Lock-Up Period

Another important aspect for yield farming platforms crypto is the lock-up period. Essentially, the lock-up period is the amount of time you need to leave your coins and tokens while they earn. This is also important when finding some of the top yield farming platforms since you cannot withdraw your cryptocurrencies that are currently locked-up.

Distribution Frequency

Lastly, the distribution frequency refers to how often yield is given back to your crypto accounts or wallets. Distribution frequency can affect compound growth since being able to collect rewards more frequently means that more of your earnings can be used to yield more free crypto.

While some platforms require you to manually claim your rewards, some of the best crypto yield farming platforms do this automatically.

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

Our Review of The Best DeFi Yield Farming Platforms to Use in 2024

We’ve done individual reviews on what we think are the top yield farming platforms available. In particular, we mention key features, rates, and coins available per platform.

Let’s take a look at these yield farming platforms crypto.

1. DeFi Swap – Overall Best DeFi Yield Farming Platform 2024

This cryptocurrency exchange and yield farming platform offers crypto investors up to 75% APY on their investments. DeFi Swap’s high rates are due primarily to its native DeFi Coin token (DEFC), the only cryptocurrency available for stake on the platform.

As previously mentioned, you have four options for lock-up terms when staking DeFi Coin on the DeFi Swap exchange:

• Bronze: 30 Days with a 30% Annual Percentage Yield (APY).
• Silver: 90 Days with a 45% APY.
• Gold: 180 Days with a 60% APY.
• Platinum: 365 Days with a 75% APY.

The DeFi Swap platform is a fully decentralized exchange. Almost any major cryptocurrency, including most stablecoins, can be swapped into DeFi Coin. Early investors will likely see higher rates or more options for yield farming in the future since DeFi Swap has made no secret that it intends to become the place for decentralized finance.

As of now, the DeFi swap is available for download online or through a decentralized app. However, if you want to see available staking options and interest rates, you must connect your wallet.

There are over 6000 users in the DeFi Swap Telegram group who interact frequently.

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

2. AQRU - Overall Best Crypto Yield Farming Platform for 2024

For its great user interface and yield rates, AQRU tops our list of best yield farming platforms. AQRU offers popular stablecoins and cryptocurrencies without any lock-in periods. A 12% annual percentage yield (APY) is rewarded for USDT, USDC, and DAI. Yield farming BTC and ETH give a 7% APY.

With no hidden fees and just a $20 withdrawal fee, AQRU will benefit long-term holders for their available cryptocurrencies. Aside from this, users get to keep their cryptocurrencies safe thanks to the proper regulations and security AQRU has in place.

AQRU is owned by Accru Finance Ltd, a private limited company registered in England and Wales. Their crypto wallet system is secured by Fireblocks, a leading wallet infrastructure provider, to keep your Yield Farming Crypto accounts safe. In the event that assets are stolen, a $30 million policy is in place to cover the losses from theft.

The minimum deposit to lend crypto on AQRU is $100 and there is currently no minimum for withdrawals as long as users can cover their withdrawal fee.

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

3. eToro - Among the Top Yield Farming Platforms with Crypto Staking

Next atop our list  is eToro, an all-in-one trading platform with several cryptocurrency products. One of eToro’s latest features, Crypto Staking, is a form of yield farming where particular cryptocurrencies are used to validate transactions. Owners of the cryptocurrencies being staked earn rewards.

On eToro, users can stake their Cardano (ADA) and Tron (TRX) coins to earn yield. Because eToro is fairly new as a yield farming crypto platform, the broker is still looking to add more coins for users to earn.

If you already have an account and are familiar with the social trading platform’s ecosystem, then eToro can be considered one of the viable yield farming crypto platforms available.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Note: Only cryptocurrencies eToro customers in the United States will be able to trade on the platform will be Bitcoin, Bitcoin Cash, and Ethereum.

4. Crypto.com - Fast Crypto Platform with High Stablecoin APY

If you’re willing to stake a lot of their native tokens then Crypto.com can be one of the top yield farming platforms with high stablecoin APY. In particular, Crypto.com’s yield farming product called Crypto offers up to 14% APY on stablecoins.

What puts Crypto.com among the best crypto yield farming platforms aside from high APY is that it has several options for earning. Combined with over 50 cryptocurrencies available for yield farming, Crypto.com offers three different holding plans as well. These holding terms are flexible holding terms, 1-month fixed term, and 3-month fixed term.

So depending on how much Crypto.com Coin (CRO) you’ll stake, the holding term you’re using, and which cryptocurrency you’re using to yield farm, the APY will vary.. For example, if you want to earn the maximum amount for USDT which is 14% APY, you’ll need to stake $40,000 worth of CRO, and use a 3-month fixed holding term.

Alternatively, Crypto.com’s wallet app is one of the best DeFi yield farming platforms as well. Over 35 tokens are offered here with no lock-up periods and decent returns.

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

5. Coinbase - One of the Best Yield Farming Platforms for Beginners

Coinbase is one of the most popular and best crypto exchange platforms which also offers decent yield farming options. With a simplistic, easy-to-use interface as well as accessible payment options, new crypto investors will benefit greatly from Coinbase.

As one of the best yield farming platforms, Coinbase lets users select which DeFi protocol to use to earn interest.

Perhaps the most value that Coinbase gives as one of the best platforms for yield farming beginners is the educational resources available. Not only do they have entire courses on how to earn and yield farm from crypto, but accomplishing some of these resources lets you avail of free cryptocurrencies.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Best Yield Farming Crypto Platforms - Rates Comparison

If you want to better compare the different yield farming platforms, we’ve formulated a table below showing each platforms’ cryptocurrencies for earning as well as the maximum yield you can earn.

Is Yield Farming Crypto Profitable?

Although a very new form of earning passively, crypto yield farming has helped many crypto investors earn passively. However, there are certain risks involved in terms of regulations and crypto volatility. It’s at the discretion of each individual investor to identify if the rewards are worth the current risks when it comes to finding the best yield farming platforms and methods.

What Cryptos Can You Yield Farm?

There’s virtually no limit when it comes to what crypto assets can be used to yield farm since any crypto asset can be borrowed to earn interest. Ideally, the best yield farming platforms crypto offers popular coins that many know and understand.

Before yield farming yourself, it’s best to understand the cryptocurrencies that you’ll be using to earn. This is especially true for non-stablecoin cryptos that can vary in price. Crypto volatility can be a major factor in your yield farming earnings.

Crypto Yield Farming Taxes?

US citizens that are subject to US tax reporting must report their earnings from crypto staking rewards and other earnings like interest and yield from cryptocurrencies.

Particularly for US clients who earn over $600 per calendar year will need to fill up a 1099-MISC Miscellaneous Income form for the IRS. Some of the top yield farming platforms like Coinbase usually offer this form and more about these tax requirements can be found on the official IRS website.

To offer clarification regarding airdrops, hard forks, and mining, the IRS issued Notice 2014-21 and Rev. Rul. 2019-24, determining that any new cryptocurrency units received by the taxpayer are classified as taxable income. While there is no official tax guidance specifically addressing yield farming income, it is typically treated similarly to mining income in terms of taxation.

Crypto Yield Farming vs Staking

As mentioned earlier, staking is a form of crypto yield farming. It only works for cryptocurrencies that run under the Proof-of-Stake (PoS) consensus mechanism and requires you to lock the crypto that you stake in order to validate certain transactions on respective blockchains.

Where crypto yield farming usually involves borrowing and lending, staking gives more mining power when it comes to blockchain aspects. However, both methods are rewarded with cryptocurrency in the end.

Is Crypto Yield Farming Safe?

Many top yield farming platforms are still new products and have not been tried and tested in the long run. Some platforms do offer certain safety measures like insurance and security, but as crypto yield farming remains a novel income-generating activity, quite a few risks remain.

Little to No Regulations

Presently, there exist no distinct tax regulations pertaining to yield farming. Nonetheless, any cryptocurrency earned through yield farming, in the form of rewards, is classified as income and necessitates reporting for income tax purposes.

Should you decide to sell the rewarded asset at a profit or exchange it for another cryptocurrency, it becomes subject to capital gains tax as a crypto-to-crypto transaction. Staying updated on tax laws and seeking advice from a tax consultant is essential in this regard.

Impermanent Loss

Impermanent loss is one of the other risks of losing money for providing liquidity in yield farming. Basically, impermanent loss is the opportunity cost of what you lose when you provide liquidity for different platforms. Although you are earning fees, you may lose out on potential profits when coins appreciate in value.

If you invest, you will earn the fees, but may lose out on potential profits from coins appreciating in value. If you HODL, you get complete exposure to the coins increasing in value, but you do not earn any extra incentives.

Conclusion

Ultimately, the rewards of yield farming are very enticing as they offer many more returns as compared to usually interest paid from traditional bank savings accounts. Choosing the right yield farming platform for you can give you an edge especially as you plan on starting early.

If you want to start yield farming today, we recommend AQRU, one of the best yield farming platforms available. Start earning 12% APY on stablecoins and 7% APY on BTC and ETH with no hidden fees – all through AQRU’s great mobile app!

AQRU - Best Yield Farming Crypto Platforms Platform

The price or value of cryptocurrencies can rapidly increase or decrease at any time. You must be satisfied that this crypto offering is suitable for you in light of your financial circumstances and attitude towards risk.

FAQs

References:

• https://www.bitcoin.com/get-started/what-is-yield-farming/
• https://www.financemagnates.com/cryptocurrency/education-centre/everything-you-need-to-know-about-crypto-yield-farming/
• https://yourcryptolibrary.com/defi/what-is-apy-apr-in-defi/
• https://thedefiant.io/what-is-yield-farming
• https://koinly.io/blog/how-is-yield-farming-taxed/