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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 to earn passive crypto income?

Earned Interest on Crypto: The other major way to earn a passive crypto income is through staking. When it comes to your compensation for staking your cryptos, APY is also the standard measurement. Regardless of where APY is used, it offers the same basis for interest. How Does APY Work?

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.

What is the average return on crypto assets?

Generally speaking, a typical return for crypto assets on an exchange is between 2-15%, with the higher end of that spectrum being for stablecoins, and the lower end being for extremely popular assets such as Bitcoin and Ethereum.

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