If you are new or relatively old in the cryptocurrency industry, you must have heard of the acronym APY (Annual Percentage Yield). But you probably haven’t given much time to understand how it works or how it is being calculated. We’ve got you covered in this article that explains it in detail. So read on;
What is APY?
Annual percentage yield (APY) is simply explained as the rate of return gained over a year on a specific investment.
If you are not a risk-averse investor, cryptocurrency savings accounts with APY may be just what you need if you are an investor who wants to make a return on investment while just holding it.
VIBRA offers a savings program on its wallet app similar to that of the banking system but a little saucier with juicy offers.
If you save your USDT, BTC, ETH and BNB on VIBRA, they have the potential to grow every day at the rates of 4%, 2%, 2% and 0.8% APY respectively.
How to Calculate Your APY
Because your savings on VIBRA is usually readily redeemable and not locked, if you want to know how much you will earn in a specified time frame (e.g. daily). The easiest way is to identify the number of days in a year and divide the product of your principal and the APY by the number of days.
Here is an example of how to calculate your daily earnings from saving 1000 USDT.
Interest = (Principal × APY / 365) × Period
Interest = (1000 × 0.04/365) × 1
Daily interest ≈ 0.11 USDT
To know your weekly interest, just multiply your daily interest by the number of days in a week. The same approach is used for the monthly interest.
Note: this formula can be applied to your BTC, ETH and BNB savings in their varied APY.
Do you want to start saving on VIBRA? Click here to learn how to save and earn on VIBRA.
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