Here is a short intro. In early 2021, I signed up for CakeDefi.com, transferred some BTC, and got $30 worth of tokens of DFI. When I bought it, it was about $2.20 per coin I believe. The reason is that I read something about DeFi on I think it was Medium, and it sounded solid.
DeFi is short for “decentralized finance,” an umbrella term for a variety of cryptocurrency or blockchain financial applications designed to disrupt financial intermediaries.
A good explanation can be found at Coindesk, but it basically means that everything you used to need a bank or other financial institution for, can now be done decentralized, securely, and with higher returns on the blockchain.
So, at CakeDeFi, you can invest in a couple of financial products. One of them is staking. That’s when you join master node pools to earn staking returns of up to 118.6% No setup or technical know-how required.
Again, explaining what Staking is is too long for this issue. So here is Binance’s explanation. It’s worth the read.
You may think of staking as a less resource-intensive alternative to mining. It involves holding funds in a cryptocurrency wallet to support the security and operations of a blockchain network. Simply put, staking is the act of locking cryptocurrencies to receive rewards.
With Staking, your earnings are transferred to you on a daily basis. So true passive income! 🥳
These coins (DFI) I mentioned before are worth about $55 now. But they can become much much more with a little patience.
Because at CakeDefi, you can also freeze your DFI (The DeFiChain coin) for a certain period of time. That ranges from 6 months to 10 years. And this is where the magic of compounding comes in!
Freeze $50 in a product that has a 136% return will yield $1,100,730.44 in 10 years!
Sounds too good to be true? Well, maybe it is. But seriously, stranger things have happened. If you invested $10 in bitcoin every week 9 years ago, you’d have $2,951,893 in the bank right now. And of course; Doge 🐕 😀
Check out their super handy returns calculator and see what you need for your chance at an early retirement!
In practice, though, it might not give you that much in 10 years. (Just read all the disclaimers) But with a small investment like this, it’s well worth the risk. After all, who doesn’t want to retire early on such a small investment?
Disclaimer: This is not by any means financial advice. I am not a financial advisor, nor do I play one on the Internet! Only invest what you can lose and keep a level head.