DYOR Crypto Wiki
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After great community collaboration DYOR has rebranded into CryptoWiki.me 🥳 a moment to celebrate!

From now on all new information will be added within the CryptoWiki.mecommunity website! No longer over here. So be sure to move over to stay on top of new research developments!

Same content - better & cleaner experience 🤝

DYOR started out in 2015 on Fandom and has now grown to ~3500 pages on CryptoWiki.me 🤩

All the information that you can find in these pages is public knowledge with sources provided. The community is encouraged to add truthful and unbiased entries to further this body of work.

Follow @cryptowiki_me on Twitter to be up to date on pages being created or edited.

"The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest.

Unlike simple interest, compounding interest is calculated periodically and the amount is immediately added to the balance. With each period going forward, the account balance gets a little bigger, so the interest paid on the balance gets bigger as well."


Basics

  • Often used besides but should not be confused with APR

"The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest.

Unlike simple interest, compounding interest is calculated periodically and the amount is immediately added to the balance. With each period going forward, the account balance gets a little bigger, so the interest paid on the balance gets bigger as well."

"It's a standard evaluation of return based on one year. You'll run into this most often when considering deposit accounts, and how much you'll earn on your deposit.

How do you convert APR to APY?

APY = [1 + (APR / Number of Periods)]^(Number of Periods) - 1

To calculate APY using APR:

  1. Take APR and divide it by the number of compounding periods.
  2. Add 1 to the result.
  3. Raise the result by the Number of Compounding Periods.
  4. Subtract 1 from the result.

The result is your Annual Percentage Yield expressed as a percentage."

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