If you’re a crypto investor looking to earn more on your holdings, you may want to consider opening a cryptocurrency savings account that offers an annual percentage yield (APY).
But what exactly is APY and how does it work?
APY is a way to measure the interest earned on your money market account over the course of a year. It’s similar to an annual percentage rate (APR) for a loan or credit card.
When you deposit your cryptocurrency into a savings account with APY, you’ll earn a fixed rate of return over a specific period of time. The interest earned on your funds is called compounding interest, which means it’s calculated on a regular basis and applied to both the principal amount (the money you put into the account) and the interest that has been accumulated.
This compounding effect allows you to earn more interest over time, which can help your investment grow even faster. However, it’s important to note that some cryptocurrency exchanges may have varying APYs and terms, so it’s important to do your research before choosing a platform to invest in.
Overall, APY can be a powerful tool for crypto investors looking to grow their wealth over time. By understanding how it works and doing your research, you can make informed decisions about where to invest your cryptocurrency savings.