In this article, we will deep dive into the new and growing world of decentralized finance. I will explain to you how decentralized exchanges work and how you can participate in them to earn passive income for the money you invest. I am not here to give you investment advice, I am here solely to break down what yield farming in decentralized exchanges is and what could be the risk associated with this type of return on your crypto assets. Even if you are not familiar with the world of cryptocurrencies, I will guide you through this journey starting from the first Bitcoin transaction in 2009 to the decentralized world of finance today.Yield farming with cryptocurrenciesBack to Basics: BitcoinThe world of Decentralized Finance or DeFi started on the 12th of January 2009 with the first-ever Bitcoin transaction. It was the first time two individuals send money to one another across the network without the need for a central authority. On \u201ctraditional\u201d days, when you buy a book online, you are trusting your bank to remove no more than the price of the book from your account and add it to the seller\u2019s account. Our entire banking system is built on trust. The breakthrough of Bitcoin was that trust became distributed, so you don\u2019t actually need to trust a central entity anymore to transfer value. Instead, you trust a network of untrusted individuals that will all verify that your transaction was executed correctly. The new technological infrastructure on top of which Bitcoin is built was called the Blockchain.How is this done? It is a fairly complicated process called mining. Users on the network use mathematics and cryptography to solve difficult problems, validate transactions, and create Bitcoins. If you want to deep dive further into this process, there are plenty of very\u2026<\/p>","protected":false},"excerpt":{"rendered":"
In this article, we will deep dive into the new and growing world of decentralized finance. I will explain to you how decentralized exchanges work and [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/3898"}],"collection":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/comments?post=3898"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/3898\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/media?parent=3898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/categories?post=3898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/tags?post=3898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}