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 (D)</p> Signup and view all the answers

What is NOT a potential risk associated with yield opportunities?

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

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

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

What is one way to manage the higher yield opportunities?

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

What is NOT an example of a yield opportunity?

<p>Mining tokens (D)</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 (B)</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 (C)</p> Signup and view all the answers

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