You have most likely come across the term liquidity mining in the Philippines, as it’s currently one of the hottest passive incomes worldwide. However, if you are a complete beginner, do not worry. We will be going over a beginner’s guide to liquidity mining Philippines by explaining what it is, how to start liquidity mining in the Philippines, and how many pesos return you can expect.
Cryptocurrency mining in the Philippines often comes with a high return of investment, and one of the reasons for this is the high risk it possesses. However, cryptocurrency investing is not for everybody, and it carries high risk, so it’s always recommended to speak to an independent financial advisor before investing.
What Is Liquidity Mining In The Philippines?
Liquidity mining is also known as yield farming. An investor will offer liquidity (liquid assets) to a decentralized exchange. Liquidity mining in the Philippines requires an investor to deposit a pair of cryptocurrencies (for example -Dogecoin and DFI) into the liquidity pool.
As a reward for offering your Dogecoin and DFI coin liquidity to the decentralized exchange, you will be rewarded with cryptocurrency such as Doge / DFI.
The ratio that an investor offers has a tendency to be 1:1. There are some decentralizing exchanges that a slightly different, but the majority are based on 1:1. This is because you need to provide the same amount of liquidity to participate in liquidity mining using the coins above. In other words, if you were to invest 5,000 Pesos of Dogecoin, you would also need to invest 5,000 DFI coins.
The other part of liquidity mining in the Philippines you may be asking is… What will happen to the funds after submitting? Funds are used as liquid assets to allow others to buy cryptocurrency on exchanges such as UniSwap. UniSwap has a fantastic article detailing each stage of the process, covering the automated liquidity protocol for further reading.
How To Start Liquidity Mining In The Philippines?
One of the most popular questions is how to start liquidity mining in the Philippines. Before you start liquidity mining, you will need to have an exchange system to reward you for offering your liquidity.
Several types of exchanges offer this service, such as UniSwap, Balancer, PancakeSwap, and many others. However, from looking at the latest statistics and APY, the best platform I believe is CakeDEFI; thus, I will go through how you can start liquidity mining on this platform.
1. Head Over To CakeDEFI
Head over to CakeDEFI and familiars yourself with the system. The dashboard is very user-friendly, and once you have signed up and have an account, you will see all your liquidity mining profits.
Also, I’d recommend taking a look at their FAQ and thoroughly investigating their site. I have been using the platform for some time and have known about their operations for many years, so I know just how legitimate and trustworthy they are; however, as a new investor, I recommend doing your own research, as I mention on all types of financial investment.
2. Apply For An Account
CakeDEFI has a reasonably lengthy application form. In some cases, you may need to sign your name on a piece of paper and take a picture of the paper next to your face to prove your identity.
For using my referral link – https://app.cakedefi.com?ref=910864 – You will get $30 (1500 Pesos) for free!
The application form is much longer than others, especially if they require any other information; however, it is 100% worth the time! In addition, I have earned more from this exchange as my own personal feedback than I have all other exchanges.
Now that we have looked at how to apply for an account, how do you start liquidity mining In the Philippines with CakeDEFI?
3. Add Liquidity Into The Pool
CakeDEFI has a list of six different pairs to choose from. At the time of recording, the highest annual percentage yield is just under 109%. However, the APY fluctuates daily, which is an important thing to remember when looking at different liquidity pools.
Once you have chosen your liquidity pool, you can click add liquidity, and a box will appear so that you can enter your amount of liquidity. Remember that the impact of both cryptocurrencies needs to be the same. If you invest 5000 pesos of one coin, you will also need to invest 5000 pesos of the other coin. The ratio is 1:1.
Once you click continue, you will then see the rates and different information, such as any included fees. Fees are always very low and are based on a percentage.
Once you have confirmed your liquidity investment, you will see your investment in the “My Liquidity Tab.”
From this tab, you will see the total value, the amount that has been invested, your awards, and how to add/remove funds.
As you can see, the BTC shows as zero, but there are rewards, but as the current price of Bitcoin is so high, the rewards are 0.0000### meaning that you will need to hover over the amount to see the exact amount up Bitcoin you have earned. This is also the same for other cryptocurrencies that are high in value.
4. Choose To Reinvest Or Withdraw
The last step in liquidity mining in the Philippines is whether you choose to reinvest or withdraw your profits.
CakeDEFI Also offers a staking product for those who are interested in cryptocurrency staking. In other words, you can use auto stake your rewards from liquidity mining on the platform, or you can turn off this feature and instead invest profits back into liquidity mining.
What Are The Returns On Liquidity Mining In The Philippines?
Returns on liquidity mining in the Philippines can differ depending on the decentralized exchange the investor is using. Previous returns have been as high as 1000% or more – annual percentage yield (APY). However, the APY on platforms such as CakeDefi has hovered around 30 – 105% in recent times.
The annual percentage yield frequently changes depending on numerous factors. The exchange you are using, as well as the market itself, are all contributing factors.
Is Liquidity Mining Better Than Traditional Crypto Mining?
Previously we have spoken about the pros and cons of cryptocurrency. Is Bitcoin mining still profitable in the Philippines? But this question is slightly more challenging.
Traditionally cryptocurrency mining focuses on common cryptos such as Bitcoin. However, to mine Bitcoin profitably in modern times will require a professional mining unit and the ongoing cost of electricity. This can create a barrier for many Filipino investors who are looking to mine cryptocurrency.
Liquidity mining is often a better option for many investors as the money spent on mining equipment is used as liquidity. But as mentioned previously, there are many factors to consider to determine whether liquidity mining is more profitable than traditional mining.
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