Go there ‘all in’ with your money (they say). Invest in Margin, Savings, Staking, Swaps, Liquidity Pools, Yield Farming, Dual Investment, Airdrops, NFTs, Lending and the whole plethora of opportunities that the crypto world can give you (they say). You’ll be a millionaire in no time, you’ll see (they say). You’ll get at least gazillion % APY (they say).
Bullshit, I say.
APY stands for annual percentage yield, which is the actual rate of return earned on an investment, considering the compound interest. [Team DeHive] APY is the real rate of return earned on an investment, taking into account the effect of compounding interest.
Formula
APY = (1 + r/n)^n — 1
And again. What’s APY in Crypto? Annual Percentage Yield is the total amount of interest that you may earn on your cryptocurrency balance over one year. The APY (annual percentage yield) is quoted on every savings account at a bank and every investment opportunity. It depicts how much money you’ll make over the following 12 months, assuming you don’t withdraw or relocate your money sooner.
OK, I think now it’s understood after repeating four times, at least to me.
Centralized Exchanges (CEX)
Sell High: (Subscription Amount * Target Price) * [1 + (APY% * Deposit Days / 365)]
Buy Low: (Subscription Amount / Target Price) * [1 + (APY% * Deposit Days / 365)]
When a product is “not exercised”, your subscription amount and interest income will not be converted, and you will receive in the deposit currency. The below formula shows the total amount you will be receiving:
Subscription Amount * [1 + (APY% * Deposit Days / 365)]
- Savings: How do Savings (Flexible and Locked) Tier APYs work? For certain types of cryptocurrencies, Binance currently offers a tiered saving rate system. This works by offering different levels of APY (annual percentage yield) according to the amount being deposited in the Flexible Savings. Tier 1: 0–2,000 USDT=10.00%; Tier 2: 2,000–75,000 USDT = 3.00%; Tier 3: >75,000 USDT= 1.00%
For example, if you have deposited USDT in Flexible Savings, then for the first 2,000 USDT you will accumulate 10.00% APY, for the next 73,000 USDT you will accumulate 3.00% APY, while for the remaining USDT you will accumulate 1.00% APY.
- Locked Staking: The APY is adjusted daily based on the on-chain staking rewards, and the specific APY is subject to the page display on the day.
- DeFi Staking: Risk Warning. Binance strives to offer its users only the best DeFi Mining projects. However, Binance only acts as a platform to showcase projects and provide users with related services, such as accessing funds on behalf of the user and distributing earnings, etc. Binance does not assume liability for any losses incurred due to project on-chain contract security issues.
- Liquidity Farming: is a liquidity pool developed based on the AMM (Automatic Market Maker) principle. Just like any other DeFi swap, it consists of different liquidity pools, and each liquidity pool contains two digital tokens or fiat assets. [Binance explanation below]
Decentralized Exchanges (DEX)
Yield Farming: Uniswap, Sushiswap, BurgerSwap, PancakeSwap; Top 5 crypto highest APY platforms that WILL beat USD INFLATION in 2022
Is there any crypto platform that will beat Argentina inflation in 2022? We’re talking about at least +60%!
Scam Exchanges (SEX)*
Some additional red flags typical of a fake exchange include:
- If an exchange promises a rate of return on an investment that seems too good to be true, it most likely is.
- Don’t succumb to any pressure to deposit funds or make a larger investment than you intended.
- Excessive communications that look like spam, especially those that continue to ask for persistent recharging of wallets, may be a sign that the exchange is trying to collect funds to be misappropriated.
- Be wary of any unsolicited offers or calls with advice on investing or buying cryptocurrencies.
- Platforms that ask for unusually high registration or withdrawal fees that were not previously disclosed should also be avoided and reported.
- As with a scammy or malware-infected website, questionable exchanges may look different from a legitimate exchange.
Tools that might help
- APY Calculator: How does this APY calculator work? This APY calculator bases its calculations on two values — interest and compound frequency. Thanks to the variety of options in the second box, you can compare a number of offers which have different compounding periods.
- Common sense: sound and prudent judgment based on a simple perception of the situation or facts.
- Four signs:
- Scammers PRETEND to be from an organization you know.
- Scammers say there’s a PROBLEM or a PRIZE.
- Scammers PRESSURE you to act immediately.
- Scammers tell you to PAY in a specific way.
