How to Buy Yearn.Finance (YFI)
Beginner’s Guide
What Is Yearn.Finance (YFI)?
Yearn.finance is an aggregator service for decentralized finance (DeFi) investors, using automation to allow them to maximize profits from yield farming.
Its goal is to simplify the ever-expanding DeFi space for investors who are not technically minded or who wish to interact in a less committal manner than serious traders.
Launched in February 2020, the service, formerly known as iEarn, has seen huge growth in recent months as new products debuted and developers released in-house token YFI.
How to Buy Yearn.Finance Summary
- Get a Yearn.Finance wallet (e.g. Ledger, Trezor , Exodus, Guarda, AtomicWallet)
- Find an exchange that sells Yearn.Finance (e.g. Crypto.com, Binance , Coinbase , Bitfinex , Kucoin)
- Deposit money and make the trade
- Withdraw the Yearn.Finance to your wallet
Buying Yearn.Finance in 3 Simple Steps
Step 1 – Get a YFI wallet
Yearn.Finance Hardware Wallets
Yearn.Finance (YFI) is an ERC-20 token that can be stored on compatible hardware wallets that support Ethereum and other ERC-20 tokens. Here are some popular hardware wallets that can be used to securely store YFI:
Ledger Nano S: The Ledger Nano S is a popular hardware wallet that supports YFI and other ERC-20 tokens. It provides a high level of security by storing your private keys offline and requires physical confirmation for transactions.
Trezor: Trezor is another popular hardware wallet that supports YFI. It offers a user-friendly interface and advanced security features, such as PIN protection and passphrase support.
KeepKey: KeepKey is a hardware wallet that supports YFI and other ERC-20 tokens. It features a large, easy-to-read display and offers a simple setup process.
Ledger Nano X: The Ledger Nano X is a newer model of the Ledger Nano S and offers additional features such as Bluetooth connectivity and mobile compatibility.
Ellipal: Ellipal is a hardware wallet that supports YFI and other ERC-20 tokens. It features a unique design that is completely air-gapped, ensuring the highest level of security.
It’s important to note that before purchasing any hardware wallet, it’s important to verify that it supports YFI and other ERC-20 tokens. Additionally, it’s important to keep your hardware wallet in a safe and secure location to prevent unauthorized access.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Yearn.Finance Software Wallets
Yearn.Finance (YFI) is an ERC-20 token that can be stored on compatible software wallets that support Ethereum and other ERC-20 tokens. Here are some popular software wallets that can be used to securely store YFI:
MyEtherWallet: MyEtherWallet (MEW) is a popular web-based wallet that supports YFI and other ERC-20 tokens. It offers a simple interface and advanced security features, such as two-factor authentication.
MetaMask: MetaMask is a browser extension that can be used to securely store YFI and other ERC-20 tokens. It features a user-friendly interface and offers easy integration with decentralized applications (dApps).
Trust Wallet: Trust Wallet is a mobile wallet that supports YFI and other ERC-20 tokens. It offers a simple and easy-to-use interface and provides advanced security features, such as fingerprint and face ID authentication.
Exodus: Exodus is a desktop wallet that supports YFI and other ERC-20 tokens. It offers a sleek and user-friendly interface and provides advanced security features, such as backup and recovery options.
Atomic Wallet: Atomic Wallet is a multi-currency wallet that supports YFI and other ERC-20 tokens. It offers a simple and easy-to-use interface and provides advanced security features, such as two-factor authentication.
It’s important to note that when using any software wallet, it’s important to keep your private keys safe and secure to prevent unauthorized access. Additionally, it’s important to verify that the wallet supports YFI and other ERC-20 tokens before making a purchase.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Yearn.Finance software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Step 2 – Find an Yearn.Finance (YFI) Exchange
Buy Yearn.Finance through Crypto.com
- Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos. The company was initially founded in Hong Kong by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo in 2016 as “Monaco”. In 2018, the company was renamed as Crypto.com following a purchase of a domain owned by cryptography researcher and professor Matt Blaze. Domain sellers valued the domain at US$5–10 million.
Buy Yearn.Finance through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy Yearn.Finance through Coinbase
- Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 200+ countries). Coinbase will sell you CRO for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Cronos”
Buy Yearn.Finance through Bitfinex
- Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships. Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.
Buy Yearn.Finance through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Step 3 – Withdraw Your Yearn.Finance (YFI)
To withdraw your Yearn.Finance (YFI) tokens, you need to have access to a compatible wallet that supports ERC-20 tokens. Here are the general steps to withdraw YFI:
Open your wallet: Launch your compatible wallet that supports YFI and ensure that it is connected to the Ethereum network.
Navigate to the YFI token: Locate the YFI token within your wallet interface.
Select “Send”: Choose the “Send” option within your wallet and enter the amount of YFI that you wish to withdraw.
Enter the recipient address: Enter the wallet address of the recipient to whom you want to send the YFI tokens. Make sure that you enter the correct address to avoid losing your tokens.
Confirm the transaction: Confirm the transaction details, including the amount of YFI being sent and the recipient’s wallet address. Once you have reviewed and confirmed the transaction details, submit the transaction.
Wait for confirmation: Wait for the transaction to be confirmed on the Ethereum network. The amount of time it takes for a transaction to be confirmed can vary, but typically takes a few minutes to an hour.
Once the transaction is confirmed, the YFI tokens will be transferred to the recipient’s wallet address. It’s important to note that there may be fees associated with withdrawing YFI, such as gas fees, so make sure to account for these when making a withdrawal. Additionally, it’s important to keep your private keys safe and secure to prevent unauthorized access to your wallet and tokens.
OVERVIEW
Who Are the Founders of Yearn.Finance?
Yearn.finance is the brainchild of Andre Cronje. After leaving the iEarn project in February 2020, Cronje returned to oversee a rebirth, with new tools emerging and YFI going live in July.
Since then, its fortunes have turned around, with assets under total value locked coming in at just over $1 billion as of the end of September 2020.
Cronje has a long career in cryptocurrency and has become synonymous with DeFi in particular. He also has positions at smart contract ecosystem Fantom and CryptoBriefing, a resource dedicated to initial coin offerings (ICOs) and crypto media.
What Makes Yearn.Finance Unique?
Yearn.Finance (YFI) is unique in several ways:
Automated yield optimization: Yearn.Finance is designed to automate yield optimization for cryptocurrency investors. It uses smart contracts and algorithms to automatically move funds between different DeFi protocols in search of the highest yields.
Decentralized governance: The Yearn.Finance ecosystem is governed by YFI token holders, who can vote on proposals to determine the direction of the protocol. This means that decisions are made in a decentralized and community-driven way.
Aggregation of DeFi protocols: Yearn.Finance aggregates various decentralized finance (DeFi) protocols to optimize yield. By aggregating these protocols, Yearn.Finance allows investors to access the best possible yields in the DeFi space.
Limited supply: There are only 30,000 YFI tokens in existence, making it a scarce asset. This limited supply has helped to drive demand for YFI and increase its value.
Community-driven development: Yearn.Finance has a highly active and engaged community of developers and contributors who are constantly working to improve the protocol. This community-driven approach has helped to drive innovation and development in the DeFi space.
Overall, Yearn.Finance is unique because it provides a powerful tool for automating yield optimization in the DeFi space while also allowing users to participate in the governance of the protocol in a decentralized and community-driven way.
How Many Yearn.Finance (YFI) Coins Are There in Circulation?
Yearn.finance in-house token YFI has a fixed supply of 30,000 coins. There was no premine upon launch in July 2020, and developers did not receive any starting funds: the total supply at launch was 0 YFI.
Since then, the majority of the capped supply has entered circulation, and the success of the token is reflected in its all-time high price of $41,000, which it hit in mid-September 2020. YFI was also the first cryptocurrency to become worth more than Bitcoin (BTC) per unit.
Users of yearn.finance earn YFI through providing liquidity, while token holdings dictate governance privileges.
How Is the Yearn.Finance Network Secured?
The Yearn.Finance network is secured by a decentralized network of nodes that validate transactions and smart contracts. The network uses the Ethereum blockchain, which is one of the most secure and well-established blockchain networks in existence. Here are some of the key security measures that help to secure the Yearn.Finance network:
Ethereum blockchain: Yearn.Finance is built on the Ethereum blockchain, which is a highly secure and decentralized blockchain network. Ethereum has been around since 2015 and has a proven track record of security and reliability.
Smart contract security: Yearn.Finance uses smart contracts to automate yield optimization. These smart contracts have been audited by third-party security firms to ensure that they are secure and free from vulnerabilities.
Decentralized validation: The Yearn.Finance network is secured by a decentralized network of nodes that validate transactions and smart contracts. This helps to ensure that the network is resistant to attacks and that transactions are processed securely.
Non-custodial wallets: Yearn.Finance is designed to be used with non-custodial wallets, which means that users retain control of their private keys. This helps to prevent unauthorized access to funds and increases security.
Community-driven security: Yearn.Finance has a highly engaged community of developers, security experts, and contributors who are constantly working to improve the security of the protocol. This community-driven approach helps to identify and address security vulnerabilities quickly.
Overall, the Yearn.Finance network is secured by a combination of advanced technology, decentralized validation, and community-driven security measures. These measures help to ensure that the network is secure and resistant to attacks, providing a safe and reliable platform for users to optimize their yields in the DeFi space.
Where Can You Buy yearn.finance (YFI) ?
Yearn.Finance (YFI) can be bought and traded on several cryptocurrency exchanges. Here are some popular exchanges where you can buy YFI:
Binance: Binance is one of the largest cryptocurrency exchanges in the world and offers YFI trading pairs with several cryptocurrencies such as BTC, ETH, and USDT.
Coinbase: Coinbase is a well-known and user-friendly cryptocurrency exchange that offers YFI trading pairs with several fiat currencies, including USD, EUR, and GBP.
Kraken: Kraken is a popular cryptocurrency exchange that offers YFI trading pairs with several cryptocurrencies such as BTC, ETH, and USDT.
Uniswap: Uniswap is a decentralized exchange (DEX) that allows users to trade YFI without an intermediary. To use Uniswap, users need to connect their wallet, such as MetaMask, to the platform.
Huobi: Huobi is a cryptocurrency exchange that offers YFI trading pairs with several cryptocurrencies such as BTC, ETH, and USDT.
It’s important to note that YFI is a relatively new and volatile asset, so it’s important to do your own research and carefully consider the risks before investing. Additionally, cryptocurrency regulations vary by jurisdiction, so it’s important to understand the regulations in your area before buying YFI.