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What is Farm coin? In the cryptocurrency market, you must have heard many people talking about coin / token farming and how to make profits from farming coins. However, you are still confused about how the term “farm” is correct. In this article, Cryptocoin24h will share basic information about Farm coin to help you answer your questions.
What is Farm coin?
What is Farm Coin? Farm coin can be understood most simply; it means “mining coin.” When the cryptocurrency market was in its infancy, the “mining” of those days required a vast and expensive computer configuration investment to participate in Bitcoin mining.
Miners have to spend a lot of money to buy computer equipment called “buffaloes” to participate in Bitcoin mining and receive rewards.
But at present (2021), the term “farm coin” has been redefined and understood by the crypto investor community differently.
In simple terms, “farm coin” means that you will use the coin/token in your wallet to send to the exchange and join the farm to receive new tokens.
Many exchanges allow you to participate in coin farming. But in this article, Cryptocoin24h will introduce you to the form of farming coins on the Binance Launchpool platform.
What is Binance Launchpool?
Binance launch pool is a platform under the world-famous Binance exchange. This platform allows you to use your coin/token to farm new tokens/coins in the form of staking.
The number of tokens you receive per day will be more or less dependent on the initial coin/token ratio that you register to join the farm.
After the tokens you receive are listed on the Binance exchange, you can start trading and exchanging those tokens for profit.
What are the advantages and risks of Farm coin?
What are the advantages of farm coin?
Farm coin is a new way of making money for crypto investors worldwide; it opens a new development for Defi and supports the platform to trade with more liquidity.
Ethereum-based credit markets offer many new strategies for crypto holders to earn extremely lucrative profits from their cryptos, which are at least a hundred times higher than a traditional bank.
Profitable farmers can also increase their profitability by tapping into liquidity. They receive tokens from their borrowing company, in addition to the high-interest rates on their loans.
What are the risks of farm coin?
The market contains many risks, especially legality, because the laws have not been approved the countries. Therefore, if making money based on origin, cryptocurrency is a considerable risk based on the main product; once a crypto project is down, your mining is useless.
Defi applications are open source and can be vulnerable; the risk of joining a Defi platform with young, unproven tokens has a high chance of losing value, leading to the entire dApps ecosystem collapsing.
When you Farm coin/token by lending, there is a decrease in the value of the coin they used as collateral, leading to the total loss of the productive farmer's capital.
The way Binance Launchpool works
Farm on Binance requires you to use coins BNB (Binance coin) BUSD (Binance USD) to participate. Binance also recommends using the BNB coin to join the farm to get a higher profit rate.
For example, if you send a BNB coin to join the farm, Binance will receive the amount of BNB you send. Your token reward will be based on the ratio of BNB staking to the total BNB staking of each pool.
Within 30 days after that, you will be able to receive new tokens. The token will be officially listed on the Binance exchange within the first seven days. So you can trade for the token that you have received.
How to start farming coins on Binance Launchpool
First, you need to register a Binance account (detailed registration instructions).
After you have an account, you log in to the exchange, click on the 9 square icons in the left corner -> “launchpad.”
scroll down, and you will see pools that allow you to farm coins with staking. You notice that “BUSD Pool” means allowing you to use BUSD to farm. Similarly, “BNB Pool” allows you to use BNB to farm.
Then click on the button “Staking now” to start the mining operations and enter the coin/token balance to farm.
In the following steps, you just follow the instructions of the Binance platform to complete the registration of farm staking coins.
Through the article What is Farm coin? To start farming coins at Binance Launchpool, you must understand how Farm coin works. I hope the information in the article will be helpful to you so that you can earn more profit by farming to receive tokens.
What are the frequently asked questions about farm coin?
What is the minimum amount of coins to farm on the launch pool?
If your minimum BNB or BUSD balance is 0.1, then you can farm.
Who can participate in farming coins on Launchpool?
Anyone can join if they have registered an account and have a BNB or BUSD balance on Binance Launchpool.
Are coins/tokens registered to Launchpool locked?
Coins/tokens deposited for farming will not be locked; you can withdraw or add to staking whenever you want.
Which wallets will the farmed tokens/coins be sent to?
Tokens/coins that you earn from farming will be sent to the Spot wallet.
What is the average coin farming time of the projects?
Usually, the average farming coin project is 30 days.
