Gate.io will become one of the most popular cryptocurrency exchanges in the world. Gate.io enables various forms of trading, one of which is liquidity mining. What exactly is liquidity mining? And how does Gate.io make it possible to start trading? is summarized as an article.
What is liquidity mining?
Liquidity mining involves depositing cryptocurrencies to provide liquidity to the pool and receive rewards. By depositing cryptocurrencies at Gate.io, investors can earn commissions as yields when other users trade. Liquidity mining does not require difficult techniques or trading skills, so anyone can participate. Of course, since it is an investment, there is no guarantee that you will win 100% of the time.
How liquidity mining works
Liquidity mining in Gate.io makes it possible to make the following profits. Depositing cryptocurrency with Gate.io gives you the following rewards: By depositing virtual currency, you can receive a special reward of GT, which is a unique currency. Half of the 0.3% transaction fee will be converted to the native token GT and accumulated in the bonus pool. By the way, if there is a profit, the deposited virtual currency itself will be given, but it may or may not be depending on the token.
- transaction fee
- Original token GT bonus
- Deposited Token
Advantages of liquidity mining
The advantages of liquidity mining are:
Reward Harvest Fee
When liquidity mining makes a profit, there are no fees and users can withdraw for free. In a normal liquidity pool, there will always be a gas fee. But with Gate.io, no matter how much you withdraw, it’s free.
original token GT
As explained above, GT tokens are given as a reward. This unique token GT is on an upward trend and can be expected to rise in value in the future, so holding it has the potential to be a great advantage.
Disadvantages of liquidity mining
Of course, there are also disadvantages to liquidity mining.
Not 100% Profitable
It may seem obvious, but there is no guarantee that you will win 100% of your investment. Of course, sometimes you make a profit and sometimes you make a loss.
variable loss
Of course, liquidity mining also has the potential to lose money in price fluctuations. , the funds may be less than when the operation was started, so in this case you will have lost money. The value of virtual currency fluctuates according to market conditions.
Impermanent Loss
Impermanent loss means that the profit obtained by liquidity mining is less than the profit obtained by holding the cryptocurrency. In other words, there are cases where it was more profitable to just hold it without operating it in liquidity mining.
How to start liquidity mining
Account opening is required to start liquidity mining. I have explained it in the link below, so I hope you can refer to it.
Select Finance from the screen home. And choose liquidity mining.
Source : Gate.io
You can start by selecting a token pair and pressing the add button.
Source : Gate.io
Decide the order quantity, click the Add button, and you’re done. After that, you can see the rewards accumulate in your wallet. If the transaction becomes active and the token price rises, the reward amount will rise at once.
Source : Gate.io
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