Yearn.finance is a decentralised finance (DeFi) aggregator of protocols that run on the Ethereum blockchain and allow users to maximize their earnings from crypto assets by lending and trading.
Yearn.finance was launched by Andre Cronje in early 2020. The protocol provides its users access to the highest yields on deposits ether, stablecoins, and altcoins. Andre Cronje, a South African financial technology development expert, was inspired to create Yearn.finance when he noticed inconsistencies between the yields offered in different DeFi applications.
Yearn.finance is a company that capitalizes on the practice of "yield mining," where users store crypto assets in DeFi protocols to earn more cryptocurrency. Protocols award tokens to users based on how many assets they have locked in a platform.
The yearn.finance platform includes several products that can be used independently, such as Vaults, Earn, and ZAP.
Vaults are the main feature of this protocol. It allows users to deposit cryptocurrency, and earn yields. The strategy used to manage the deposited funds is to maximize returns and minimize risk. Vaults initially supported only stablecoins but have expanded to include Ether (ETH), tokenized Bitcoin products, Chainlink and other coins.
Vaults reduce the high cost of transacting Ethereum. Because of the pooling of capital, only one account (the controller for each vault) must pay transaction fees (gas), to yield farms.
Yearn.finance offers additional services. Earn is a simplified version of Vaults, which only supports tokenized bitcoin and stablecoins. ZAP lets users swap traditional stablecoins with liquidity provider tokens that represent stablecoins.
Yearn.finance currently works on products like yInsure which is a decentralized insurance program for DeFi users and stableCredit which facilitates decentralized lending and borrowing.
Users can earn Yearn.finance (YFI) tokens for locking cryptocurrency in one of the yearn.finance trading platforms such as the Balancer or Curve.
The yearn.finance platform attracted almost $800 million in assets within its first month of operation. This makes it one of the fastest-growing DeFi projects.
As crypto exchanges have become more accessible and the YFIUSD price has risen, more people have begun to invest in cryptocurrency. Yearn.Finance trading is allowing a great transfer of wealth and even new investors can hope to profit from its fast growth and earn higher returns than they would on the stock market.
With so much attention from the media and financial traders, new cryptocurrency investors are always looking for advantageous ways (platforms) to buy Yearn.Finance (YFI) online. Luckily, there are numerous services and guides on how to buy Yearn.Finance to help you get started in the cryptocurrency market.
Where to Buy Yearn.Finance (YFI coin)
There are two ways cryptocurrency investors can choose when searching how to buy Yearn.Finance (YFI) online:
- Cryptocurrency exchange
- Online Brokers
Crypto exchanges might be a good option for holding your funds, especially if you plan to withdraw them to a private wallet.
Online brokers are another great option where to buy Yearn.Finance (YFI), which is increasing in popularity lately due to ease of trading, fast transaction, and greater control over the digital assets in your portfolio.
When you use a broker platform, you gain access to a comprehensive feature set that will assist you in more precisely calculating your strategies and risks. As a result, you will be able to add more indicators to the chart and use the built-in technical analysis tools. However, unlike an exchange, the broker platform will not provide you with the same large offer of cryptos to trade.
Additionally, global brokers like CAPEX also provide a few options to indirectly invest in Yearn.Finance and other cryptocurrencies: cryptocurrency Exchange-Traded-Funds (ETFs) and companies connected to cryptocurrencies (crypto stocks).
Buying Yearn.Finance (YFI) over an exchange
If you want to participate in a crypto project development and own the digital asset, you can buy Yearn.Finance (YFI) online through a cryptocurrency exchange, such as Binance, Kraken, Bittrex, or Coinbase, and store it in a digital wallet.
Having an account on a cryptocurrency exchange allows you to send and receive Yearn.Finance (YFI). Transferring Yearn.Finance is like the way traditional bank transfers work, except for the bank account address, which is replaced with a Yearn.Finance address. Because digital currency is transmitted directly between individuals without needing third-party entities, such as banks, transaction fees are cheaper than those charged by traditional institutions.
If you want to hold your crypto for a longer time, it is advised to transfer them from the crypto exchange to a secure cryptocurrency wallet. Wallets are much safer, and each private crypto wallet has a private key. It is critical to keep your private key safe because you won't be able to access your crypto without it, and if it's easily available, your funds could be stolen.
Buying Yearn.Finance (YFI) through an exchange is for those who want to use it for day trading or purchasing crypto to transfer to a wallet. When you’re buying Yearn.Finance (YFI) through a cryptocurrency exchange, you own the digital asset, and you can transfer it to a crypto wallet or do whatever you wish with it. If the price of Yearn.Finance rises, then the value of your portfolio goes up as well. But if the price of Yearn.Finance (YFI) falls, then the value of your portfolio falls, while the amount of Yearn.Finance (YFI) remains the same.
Here are the main drawbacks when buying Yearn.Finance (YFI) through a cryptocurrency exchange:
- Cryptocurrency exchanges may not be regulated in your country and offer little to no protection for investors.
- The matching engines and servers on Yearn.Finance (YFI) exchanges are often unreliable, leading to the inability to access your account and control your funds.
- Cryptocurrency exchanges have many restrictions and limitations for their services, including transaction fees, withdrawal fees, and imposing minimum amounts for funding and withdrawing funds.
The good news is that investors can limit the risks presented by the crypto exchange by trading Yearn.Finance (YFI) with contracts for difference (CFDs). Yearn.Finance (YFI) CFDs allow you to speculate on the price of the cryptocurrency without having to own the digital asset.
Read on if you want to learn to trade Yearn.Finance with capex.com in the most convenient way.
Buying Yearn.Finance (YFI) with an Online Broker
Trading Yearn.Finance (YFI) with an online broker like CAPEX means that instead of owning Yearn.Finance outright, you’ll be speculating on its price with CFDs.
The main difference between buying Yearn.Finance (YFI) from an exchange and buying Yearn.Finance (YFI) from an online broker is that you don’t own Yearn.Finance (YFI) when you use a broker. Owning crypto requires investors to have a crypto wallet, either within the exchange or a private wallet. But when you purchase Yearn.Finance (YFI) CFDs using an online broker, the CFDs are stored in your account and are far more liquid, which makes trading CFDs more popular. Unlike cryptocurrency exchanges, online CFDs brokers are regulated by financial authorities.
The Alternative Way to Invest in Yearn.Finance (YFI)
Trading CFDs is a process of buying or selling CFDs and can generate a profit if the value of the asset moves in the direction of the investor’s prediction, or a loss if the market goes against him.
You can buy Yearn.Finance CFDs (go long) if you believe the value of the digital asset will increase.
At the same time, you can “go short” if you believe that the price of the underlying asset, in this case, Yearn.Finance (YFI), will decrease, by selling CFDs.
Trading CFDs provides leverage, and you can open your position by depositing only a margin.
For example, if a trader wants to buy 1 Yearn.Finance CFD at $30.000 would only require $15,000 of trading capital.
It’s important to remember that leverage can increase both your profits and your losses, and they will be based on the full exposure of the trade, not just the margin requirement needed to open it. Potential losses, as well as profits, could exceed your margin.
Concisely, if you choose to trade crypto CFDs, you can profit from the difference between the buying and the selling position.
With CAPEX, you can trade CFDs on futures or spot prices. Trading CFDs on futures gives you exposure to the futures market, but without requiring you to take on any obligations or worry about any of the other nuances that are associated with futures trading.
Buy Yearn.Finance YFI CFDs - Go Long
Instead of taking ownership of Yearn.Finance, you can place a ‘long position’ translates to buying Yearn.Finance CFDs. Your position, or Yearn.Finance CFDs, will increase in value according to the increase in the price of the digital asset Yearn.Finance’s price increases. If the price of Yearn.Finance falls, then your position will lose value and can lead to loss.
Let’s assume that Yearn.Finance is trading at a sell/buy price of 20,400/20,600 USD. You want to buy 1 CFD (units) because you think the price of Yearn.Finance will go up. Yearn.Finance has a 1:2 leverage or a margin rate of 50%, which means that you must deposit only 50% of the position’s value as position margin.
In this example, your CFD position margin will be $10.300 (50% x (1 units x $20,600 buy price)). Losses greater than the margin can occur if the price of Yearn.Finance moves against your position.
Outcome A: a profitable trade
If your prediction was correct, and the price of Yearn.Finance surges over the next hours or days, then you have made a profitable trade. If the sell/buy price is 22,600/22,800 USD when you decide to close your position by selling at 5.10 (the new sell price), then your profit will be $2000.
The price has moved $2000 (22,600 - 20,600) in your favor. Multiply this by the size of your position (1 unit) to calculate your gross profit which is $1000.
If the position was closed during the day, there will not be any swap charges and the net profit is $1000.
If the position was closed after a few days, there will be swap charges according to the overnight rollover specification, in this case, -0.0563%.
Let us assume the position was closed the next day, the overnight swap calculation formula will be:
- Overnight swap = 1 (unit) x $21,300 (price at rollover) x 0.0563% x 1 (days) = $12
Therefore, your total profit on Yearn.Finance CFD is your gross profit minus the rollover cost.
- $1,000 - $12 = $888 net profit
Outcome B: a losing trade
If your prediction for the price of Yearn.Finance was wrong, the Yearn.Finance CFD trade will result in a loss. Let’s assume that the price of Yearn.Finance drops over the next hour to a sell/buy price of $23,000/23,200. Because you want to limit the loss in the eventuality that the price continues to drop, you can sell at $23,000 (the new sell price) to close the position.
The price has moved $200 (23,000-22,800) against you. Multiply this by the size of your position (1 unit) to calculate your loss, which is $200.
Sell Yearn.Finance YFI CFDs - Go Short
In this CFD example, Yearn.Finance is trading at a sell/buy price of 22,600/22,800 USD. Assume you want to sell 2 CFDs (units) because you think the price will go down. Yearn.Finance has a 1:2 leverage or a margin rate of 50%, which means that you only must deposit 50% of the position’s value as position margin.
In this example, your CFD position margin will be $22,600 (50% x (2 units x 22,600 sell price)). Remember that if the price moves against you, it is possible to lose more than your initial position margin of $22,600.
Outcome A: a profitable trade
Your prediction was correct, and the price falls over the next 2 days to a sell/buy price of 20,400/20,600 USD. You decide to close your trade by buying back at $20,600 (the new buy price).
The price has moved $2,000 (22,600-20,600) in your favor. Multiply this by the size of your position (2 units) to calculate your profit, which is $4,000 gross.
Let us assume the position was closed after 2 days, the overnight swap calculation formula will be:
- Overnight swap = 2 (units) x 21,000 (average price at rollover) x 0.0118% x 2 (days) = $9.9
Therefore, your total profit on Yearn.Finance CFD is your gross profit plus the rollover cost.
- $4,000 + $9.9 = €4,009.9 net profit
Outcome B: a losing trade
Unfortunately, your prediction was wrong, and the price of Yearn.Finance YFI rises over the next hour to a sell/buy price of $23,200/23,400. You feel the price is likely to continue up, so to limit your potential loss you decide to buy at $23,400 (the new buy price) to close the position.
The price has moved $800 (23,400-22,600) against you. Multiply this by the size of your position (2 units) to calculate your loss, which is $800.
If you are not ready to trade CFDs at spot or futures prices yet, we have also got educational resources like CAPEX Academy with free courses on how to trade. Plus, we offer a demo account – giving you $50,000 in virtual funds to build your confidence in a risk-free environment.
Investing in Yearn.Finance without actually buying Yearn.Finance
While buying and day trading cryptocurrency is a major trend right now, it is important to remember that cryptocurrencies are a volatile and risky investment choice. If investing in crypto on an exchange or via a broker does not feel like the right choice for you, here are a few options to indirectly invest in Yearn.Finance and other cryptocurrencies:
Exchange-Traded Funds - Crypto ETFs
Exchange-traded funds (ETFs) are popular investment tools that allow investors to buy exposure to hundreds of individual investments in bulk. That is why ETFs are a means of diversification for your portfolio and as less risky than investing in individual investments.
A crypto ETF allows investors to trade cryptocurrency on a traditional market and eliminates the need to trade the asset on a crypto exchange. Another advantage of trading crypto ETFs is that investors do not have to worry about the security aspects of trading crypto.
US investors can enter the crypto market by using ProShares Bitcoin Strategy ETF (BITO). The Fund provides capital appreciation through managed exposure to bitcoin futures contracts.
A Yearn.Finance ETF could come in 2022. The approval of a Bitcoin ETF means a similar offering for Yearn.Finance is imminent.
>> Learn what is an ETF and how does it work
Companies Connected to Yearn.Finance and Cryptocurrency - Yearn.Finance Stocks
Another option is to invest in cryptocurrency indirectly by investing and buying shares of companies that offer real-life products and services but still use or own cryptocurrencies as part of their business model (known as Yearn.Finance stocks). With an all-in-one trading account with CAPEX, you can also trade shares CFD of public companies like:
- MicroStrategy (MSTR). This is a software company with more than 40% of its market valuation invested in Bitcoin (BTC). Learn how to buy MicroStrategy shares
- PayPal (PYPL). This is a worldwide payment service that allows their customers to buy and sell crypto using their PayPal and Venmo account. Learn how to buy PayPal shares
- Coinbase (COIN). Coinbase is a cryptocurrency exchange that allows consumers, financial institutions, and businesses to transact between fiat and cryptocurrencies and securely store and use cryptocurrencies. Learn how to buy Coinbase shares
- Goldman Sachs (GS). This leading global investment banking, securities, and investment management firm listing includes Coin Metrics, a provider of blockchain data to institutional clients. Learn how to buy Goldman Sachs shares
- CME Group (CME). CME is a financial derivatives exchange that offers trades in cryptocurrencies as well. In Q3 2021, the company reported a 14% year-over-year increase in its average daily volume (ADV) at 17.8 million contracts. Learn how to buy CME shares
>> Learn more about stock investing
How to Buy Yearn.Finance (YFI)
Are you wondering how to buy Yearn.Finance with CFDs? CAPEX offers YFI trading via CFDs on Yearn.Finance USD spot prices to speculate on the value of YFI against the most popular currency, as well as the brand-new PRO Shares Bitcoin Strategy ETF. Here are the steps:
Step 1: Create an account and deposit funds
When you trade on cryptocurrencies, instead of purchasing Yearn.Finance and other popular digital currencies, you can be ready to open a position much faster. You do not need a digital wallet or an account with an exchange. In fact, all you need to trade via CFDs is an account with a leveraged trading provider.
With CAPEX, you can open an account in minutes, and there is no obligation to add funds until you want to place a trade.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) Yearn.Finance and other popular cryptocurrencies to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index, or sector that could be rising or falling in price.
- Trade a host of global indices to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
Step 2: Choose your Crypto trading platform
Our trading platforms can provide you with a smarter and faster way to trade Yearn.Finance CFDs – with personalized alerts, interactive charts, trading signals, and built-in risk management tools. You can trade via the CAPEX trading platform using:
CAPEX Web Trader
Trade on one of the most complete, fully customizable trading platforms on the market.
Available on desktop (Windows, Mac) and mobile (Android, iOS), it provides intuitive, web-based access to a vast range of tradable instruments, charting tools, analytical tools, and many more features.
To view Yearn.Finance's real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Cryptocurrency" and then select the instrument, in this case, Yearn.Finance (YFI).
MetaTrader 5, one of the best crypto trading apps, is providing superior tools for comprehensive price analysis, use of algorithmic trading applications (trading robots, Expert Advisor), and copy trading.
MetaTrader 5 is available on both desktop and mobile.
Step 3: Pick up a Yearn.Finance trading strategy
Learning how to buy Yearn.Finance is easy but adopting the right Yearn.Finance trading strategy is essential to time the market.
The main Yearn.Finance trading strategies are:
Buy and hold, also called position trading, is an investment strategy whereby an investor buys Yearn.Finance to hold them long-term, with the goal of realizing price appreciation, despite volatility.
Traders take a position according to the main trend (months to years). You can “go long” if Yearn.Finance is in a bullish trend or “go short” if the Yearn.Finance trend is bearish. If the major trend starts to slow or reverse, you will think about closing your position and opening a new one to match the emerging Yearn.Finance trend.
All trades are performed during the day. There are no open positions overnight, though no rollover charges. Traders are looking to profit from Yearn.Finance’s short-term price movements (including scalping), and it can enable them to make the most of daily volatility in bitcoin’s price.
When you hedge Yearn.Finance, it means that you use CFDs to counteract the Yearn.Finance price movement you already own. For example, if you owned some Yearn.Finance but were concerned about a short-term drop in their value, you could open a short position on Yearn.Finance with CFDs. If the Yearn.Finance price falls, the gains on your short position would offset some or all the losses on the coins you own.
Following the chart patterns and general trends can give you a hint to where Yearn.Finance is going.
Step 4: Set your Yearn.Finance orders
A trade order is an agreement to buy or sell a specific asset like Yearn.Finance at a specific price or price range.
To buy Yearn.Finance CFD with CAPEX, click on the "Buy" button and a window is displayed to configure the purchase order. You can choose among Market, Limit, and Stop orders.
Additionally, you can pre-define Stop Loss and Take profit orders, which are crucial risk management tools – that help you minimize the potential loss and maximize the potential gains.
How to buy Yearn.Finance with Market Orders
The simplest type of trade order is a market order. Market orders are usually placed by traders if they want to be certain trade is executed. A market order is instant. Therefore, it is simply an order placed by a trader to buy or sell Yearn.Finance immediately at whatever its current price is.
I want to buy 2 Yearn.Finance (YFI) right now or as quickly as possible.
How to buy Yearn.Finance with Limit Orders
While a market order is simply an order placed by traders to buy or sell an asset immediately at whatever the current price, a limit order in its most basic sense, is an order to buy or sell an asset at a specific price. Buy limit orders are placed above key support levels with the purpose of limiting price risks anticipating the uptrend will resume after a correction (buy the dip).
The price for YFI/USD is currently at USD 36,000 and you place a buy limit order at USD 32,000, then your order is meant to execute at the price of USD 32,000 as soon as there is a matching sell order at this price or better.
How to buy Yearn.Finance with Stop Orders
A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. Limit orders are placed above key resistance levels anticipating a breakout after a consolidation.
The price for YFI/USD is currently at USD 36,000 and you place a buy stop order at USD 37,000, then your order is meant to become market at the price of USD 37,000 as soon as the price is reached.
Step 5: Monitor and close your Yearn.Finance position
To open a Yearn.Finance trade, you’d buy if you thought that the price was going to rise or sell if you thought the price was going to fall. Once your trade is open, you’ll need to monitor the market to make sure that it’s moving in the way you anticipated.
The technical indicators available on our trading platform can help you to determine what Yearn.Finance’s price might do next. Indicators can also help you monitor current market conditions like volatility levels or market sentiment.
CAPEX WebTrader can deliver an in-depth analysis of the charts and offers over 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The WebTrader platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
Take Profit & Stop Loss
Traders can close a position immediately to take a profit or to cut a loss. You can use market order or set Stop Loss and Take Profit levels when you set the order to buy Yearn.Finance.
The platform offers the stop-loss option, which lets you clearly state how much you're willing to risk with your trade. Similarly, the take profit is the exact opposite. It tells your broker how much you expect to make as a profit and when you want to close your position.
Any profits you make will be paid directly into your trading account. Losses are deducted from your account balance.
When to buy Yearn.Finance (YFIUSD)
Investors should be aware of the fundamental and technical analysis when deciding when to buy Yearn.Finance. The fundamental analysis considers the news and events about the coins, exchanges, and other crypto businesses. The technical analysis uses the price value history to map the evolution of the supply and demand for Yearn.Finance.
Yearn.Finance Price Prediction using Fundamentals
When using the fundamental analysis approach, investors should be aware of the government regulation, latest cryptocurrency updates, and technical issues, as well as cryptocurrency exchanges that affect the supply and demand for cryptocurrencies.
For instance, when Bitcoin CME was introduced into the government regulations, and it drove the price of Bitcoin to almost $20,000 in December 2017.
An accurate Yearn.Finance price forecast using fundamental analysis considers the three main aspects:
- Blockchain metrics (hash rate, active addresses, transactions fees, and values)
- Financial (market capitalization, liquidity, trading volume, circulating supply)
- Project overview (team’s background, whitepaper, competitors, roadmap, tokenomics)
>> Learn how to forecast Yearn.Finance price with fundamental analysis
What is the future of Yearn.Finance?
Yearn.finance is a DeFi project that does not have any pre-mined coins, pre-sale or investors. It relies on other DeFi services like BalancerLabs and Uniswap.
Using this platform, users can stake stablecoins like USDC, TUSDUSD, TUSDT, USDT nad others to earn passive income. YFI can only be granted to liquidity providers within the yearn ecosystem.
Despite the fact that Yearn.Finance was launched in the middle of the global pandemic, the developers persevered and drove the project to new heights.
While many digital assets saw their prices drop due to the pandemics, YFI rose to incredible levels. Although the price of YFI saw a drop in the second half 2020, it made huge gains by the end.
2021 saw YFI's price continue its remarkable price climb. It has maintained a strong price of just below $30,000. Experts and technical analysis predict that it will surpass this price in five years and be able to leave its mark.
Yearn Finance has not looked back since then.
Yearn.Finance is always looking for profitable yield farming strategies to accept crypto assets. These can be submitted on the Yearn Finance forum, and then approved by governance.
These assets can be used on DeFi protocols with which they are explicitly partnered. The partnership with Curve DAO is especially fruitful as there have been many Vaults that accept Curve tokens or use Curve in their yield farming strategies.
Because is difficult to analyze the intrinsic value of a cryptocurrency, it is recommended you perform a technical analysis before investing in Yearn.Finance CFDs. It might offer some insight into the past movements of Yearn.Finance, helping you predict where it will head in the future.
Yearn.Finance price prediction using technical analysis
Some believe the high concentration of retail traders makes cryptos truer to traditional chart patterns and indications of oversold, overbought conditions, etc.
Technical analysis techniques can be applied to any market where the price can freely fluctuate, and data is available to see those fluctuations. The CAPEX Web Trader has a full suite of all the best-known technical indicators and chart drawing tools.
>> Learn how to forecast Yearn.Finance price with technical analysis
Yearn.Finance Forecast 2022
As of December 2021, Yearn.finance (YFI) trades at $22,045 with a 24-hour trading volume of $205,080,980, according to CoinMarketCap. The protocol has a circulating supply of 36,637.72 YFI. The maximum supply is 36,666.
The current chart indicates a bearish movement. As always, trading in bear markets should be done with care. The symmetrical triangle was resolved to the downside. This chart pattern indicated the price could fall with the height of the triangle (20.000$) from the breakdown level.
Based on chart analysis, the Yearn Finance price prediction for 2022 is as low as 10.000$.
According to WalletInvestor, long-term investment isn’t recommended. The price of Yearn.fiance is predicted to reach $16,000 by the end of 2021. If the trend continues, the price can decline by more than 40% by the end of 2022, reaching $11,700 and then $86,000 by 2026.
DigitalCoin has more optimistic price predictions and forecasts that YFI will reach $34,383.27 by the end of 2021. According to them, the price of YFI could reach $32,600 by the end of 2022 and then $77,655.50 by December 2026.
What Moves Yearn.Finance Price
The most important aspects that can influence the Yearn.Finance price are:
- Total supply
- Rules and regulations
Yearn.Finance’s price corresponds to the current supply and demand in the crypto space. Considering Yearn.Finance has a fixed maximum supply of 36,666 YFI, it is a digital asset that will experience scarcity as more investors join the Yearn.Finance trading market and the DeFi platform.
An important aspect of what moves the price of Yearn.Finance is the news.
In conclusion, should you Buy Yearn.Finance or not?
As with any investment, make sure you carefully assess your financial situation before investing in cryptocurrency, Yearn.Finance, and the stock market. Yearn.Finance can be extremely volatile—a single tweet can make its price plummet—as cryptocurrencies are still a highly speculative investment. Follow the already famous crypto investment phrase — "invest only what you can afford to lose".