What is the formula for calculating APY in cryptocurrency?

3 answers

• joan richMar 28, 2023 · 3 years ago
  Sure! The formula for calculating APY in cryptocurrency is: APY = (1 + r/n)^n - 1, where r is the nominal interest rate and n is the number of compounding periods per year. This formula takes into account the compounding effect of interest over time and provides a standardized way to measure the annualized return on investment in cryptocurrency.
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• Bakar AhmedouMay 11, 2023 · 2 years ago
  Calculating APY in cryptocurrency is pretty straightforward. You just need to use the formula APY = (1 + r/n)^n - 1, where r is the nominal interest rate and n is the number of compounding periods per year. This formula helps you understand the potential return on your investment over a year, taking into account the compounding effect of interest.
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• Piper FrederickJul 12, 2022 · 3 years ago
  When it comes to calculating APY in cryptocurrency, the formula you need to use is APY = (1 + r/n)^n - 1. This formula considers both the nominal interest rate (r) and the number of compounding periods per year (n) to give you an accurate measure of the annualized return on your investment. It's important to note that APY takes into account the compounding effect, which can significantly impact your overall returns.
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