Passive income investing is a way to increase equity by using existing financial resources. There are several ways to do this, including lending digital assets on DeFi platforms to create liquidity in the market.
One such platform is Orca, which launched in February and is based in Solana. To do this, follow our step-by-step.
- Create a wallet in Solana
Initially, you must have a wallet set up in Solana. To do so, you need to access Sollet.io webpage and copy the 24 words (seed words) highlighted.
It would be best to write it down in a safe place, preferably password-protected, as this code is the entry key to your wallet. Check the box confirming that the password is secure, download the file, and click continue. Do not share this set of words with anyone else.
2. Enter the Orca platform
After that, go to the Orca.so webpage, open the Pools tab, which shows the liquidity pools, and connect the newly configured wallet. In this same tab, you will be able to check the estimated annual return for each currency pair. It is worth noting that this index is based on the rates over the last 24 hours, seven days, or 30 days, depending on the liquidity pool.
Once you have chosen the currency pair, you must have both currencies in your wallet to do the farm on the platform. Click on deposit and select the value to be invested.
3. Understand that there are risks
When selecting the value, before effectively investing, it will be necessary to check a box confirming to be aware of the risks. Click read more and check what risks of using the platform. It is essential to assess whether they are worthwhile, and as a suggestion, investing only an amount that will not compromise your capital in case of loss.
4. Approve the deposit
Aware of the risks, click on deposit, and the page will open a confirmation window. After authorizing the operation, the balance will already appear. To withdraw, click on Whitdraw and choose the dollar amount that will be returned to the wallet.
Obtaining passive income with cryptocurrencies is one way to invest in this market, made possible by DeFi platforms. However, it is crucial to be aware of the risks, as these smart contracts can even be corrupted. Moreover, this is not an investment recommendation; this content is only meant to inform how to do it.
