In recent years, crypto-currencies have gained considerable momentum and are attracting the attention of many investors. Among them, the best known is undoubtedly Bitcoin which has experienced a strong increase in 2017 before falling back during 2018. Contrary to popular belief, it is not necessarily risky to invest in this currency since its price moves much less quickly than that of stocks or bonds, for example. However, before embarking on this type of investment, it is important to know the different types of cryptocurrencies that exist
APY is the acronym for annual percentage yield. This term refers to the annual return an investment generates. Specifically, it is the difference between what you initially invested and what you withdraw after a given period of time, divided by the total amount invested.
How to get interest on your cryptos in a few clicks?
If you want to earn interest by investing your cryptosTo do this, you need to go to a platform that offers this service. You can then choose the digital assets you want to block and see what rate of return is offered in exchange.
What is APY? The APY is the "Annual Percentage Yield", i.e. the potential annual interest. Generally, the longer the lock-in period, the higher the APY. Depending on the platform, the blocked crypto-currencies can be blocked for the whole period initially chosen or be withdrawn before their expiration, but having to pay a penalty or losing the interest to which this period would have given right
First of all, APY is an investment that can be very profitable if you choose well the cryptos you are going to invest. Indeed, some crypto currencies have a strong rise and it is important to choose the ones that will be the best performers in the long run. Moreover, this solution also allows you to protect yourself against market volatility since you can decide when to sell your crypto-active.
What is the best annual rate of return?
But things are not so simple. Indeed, it is important to take into account different criteria before choosing a financial investment and especially the one that will determine our APY. Among these criteria, we find the duration of the investment as well as its complexity. The riskier the investment, the higher the potential return, but this also means that there is a high probability that we will lose all or part of our investment. It is also important to choose the right bank for your investment because fees can have a significant impact on your return.
To avoid this kind of situation, it is recommended to invest on platforms you are already familiar with. They have a reputation to uphold and the risk of your money disappearing without a trace is much lower. In addition, they are often regulated by third-party organizations that ensure compliance and security of transactions.
Bitcoin, the most famous digital currency in the world, is also one of the most popular. For a few years now, investors and other individuals have taken a liking to this type of currency, which offers them unparalleled financial security. But how exactly does it work? Why does its price keep increasing over the months and why should we choose this type of investment over any other?
Conclude on the APY
Even if you've heard of APY before, chances are you don't know what it is exactly. Simply put, APY is the annual compound interest rate for a given investment. In other words, it indicates the overall expected return over a given period of time for a specific investment.
And there you have it, you've invested in cryptos! But be careful, it is not enough to choose just any platform to invest your money. There are reliable sites that offer this type of service and the APY (for Annual Percentage Yield) is a good indicator to evaluate the quality of the site in question.
The APY is the unit of measurement of annual net taxable income. It corresponds to the sum of the net taxable income divided by the number of calendar years between the date of opening of the first status and the date of closing of the last status giving right to tax reduction or credit.
APY is the acronym for Annual Percentage Yield. This definition is used to calculate the interest earned on a capital investment during a whole year. This interest rate is expressed as a percentage and indicates the actual profitability of the investment.