I often see questions in the community about how to start earning on crypto without active trading. Here, farming comes to the rescue — a strategy that allows you to generate income from your assets through DeFi protocols. The idea is simple: you deposit cryptocurrency into protocols like Venus, Aave, Compound, or Lido, and they pay you interest or tokens in return.

Take ETH. Deposit 1 ETH into Venus — and you receive rewards daily or weekly. The current price is around $2.26k per coin, so even a small percentage can be interesting. The same applies to SOL at the current price of about $90.92 — you can deposit it into Marinade and earn staking rewards.

But there is an even more complex technique that can increase profits. Looping is essentially cyclic repetition of operations: you provide an asset, then borrow part of what you've already provided, then provide it again, and repeat several times. Looping is a way to increase the total volume of assets in the protocol and, accordingly, earn more interest. It sounds attractive, but the main thing to remember is — it increases not only profits but also risks. Liquidation is especially dangerous, where your asset can be forcibly sold if its value drops. Therefore, always keep the LTV ratio below 50%.

For beginners, I recommend starting with a safe scheme. First, work only with verified protocols that have passed audits and have a good reputation. Venus on BSC is suitable for ETH and SOL, Aave operates on Polygon and Ethereum, Lido specializes in staking ETH, and Marinade on SOL. Second, initially just provide assets without loans and looping. The goal is to avoid liquidation risk.

Start with small amounts. For example, set aside 10-50 thousand per week for ETH or 10-40 thousand for SOL, then deposit the accumulated funds into the protocol. After a month, check the results — how many percent did you earn, did the value of your assets grow? Is it worth the time spent?

The process looks like this: Web3 wallet → deposit ETH into Venus → receive interest → your ETH grows every day, albeit slowly. If you later want to try looping, it will look like: Web3 wallet → deposit ETH into Venus → borrow back part, for example 50% → deposit again → repeat the cycle.

Farming is a great way to earn passive income from your crypto holdings. But for beginners, the simple advice is: forget about looping for now, focus on straightforward deposits into reliable protocols like Venus, Lido, or Aave. Start small, do it regularly, and every month evaluate whether it makes sense. Once you understand the basics, you can cautiously approach more complex schemes.