How does APY work in crypto?

APY in crypto works a little differently than traditional finance. This is because instead of receiving an interest rate based on the dollar value of your holdings, you receive an interest rate based on the amount of asset supplied. For example, if you were to get 5% APY and deposited 1 Bitcoin, you would get 0.05 BTC in interest after one year.

How does inflation affect crypto prices and APY rates?

Inflation plays a role in determining crypto prices and APY rates. Each crypto has what we can refer to as an “APY value”. Some cryptos have significantly higher APYs than others, which is often reflected across the platforms offering APY-based interest. APY rates always include the effects of compound interest.

How much interest can you earn on crypto lending?

Crypto investors also have various choices to earn interest on crypto lending, although the market is somewhat chaotic for crypto lending platforms at the moment. According to current Crypto.com interest rates, investors can earn up to 14.5% APY in their Crypto Earn accounts, including 6% APY on Bitcoin (BTC) and Ethereum (ETH), as of this writing.

How much APY can you Earn with Bitcoin?

If you deposit Bitcoin, you earn around 1.04% APY. There’s a special compound interest formula that calculates the total crypto interest you can earn based on your holdings. Let’s break it down for you: