Token Yield and Risk Management
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Questions and Answers

What is one way to generate yield with tokens?

  • Storing tokens in a secure wallet
  • Trading tokens on a centralized exchange
  • Staking tokens to secure a blockchain (correct)
  • Converting tokens to fiat currency
  • What is a potential risk associated with yield opportunities?

  • Low yields
  • High yields
  • Impermanent loss (correct)
  • Volatile prices
  • What is one way to manage the risk associated with yield opportunities?

  • Targeting higher yields
  • Holding tokens for the long term
  • Generating yield from several different sources (correct)
  • Investing only in tokens with high yields
  • What is NOT a way to generate yield with tokens?

    <p>Selling tokens on a centralized exchange</p> Signup and view all the answers

    What is NOT a potential risk associated with yield opportunities?

    <p>Diversified risk</p> Signup and view all the answers

    What is one way to soften the blow of price declines?

    <p>Accumulating more tokens</p> Signup and view all the answers

    What is one way to manage the higher yield opportunities?

    <p>Targeting lower yields</p> Signup and view all the answers

    What is NOT an example of a yield opportunity?

    <p>Mining tokens</p> Signup and view all the answers

    What is one way to diversify risk when generating yields with tokens?

    <p>Generating yield from several different sources</p> Signup and view all the answers

    What is one way to improve long-term results when generating yields with tokens?

    <p>Accumulating more tokens</p> Signup and view all the answers

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