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Krystle Blough

Krystle BloughDeFi

Crypto APY basics for complete beginners 📚

Cover Image for Crypto APY basics for complete beginners 📚

Crypto APY, explained.

Are you just getting into defi and wondering how APY works in the crypto space? Here's a beginner-friendly guide to get you started!

Prefer video? Watch this 2-minute breakdown instead: Crypto APY Explained for Complete Beginners

What is APY in crypto?

Crypto APY is basically how much you’ll make in a year, if you deposit your tokens for that whole length of time. Let’s say the APY for UNI is 5%. If you deposit 100 UNI for a year, at the end of the year you’ll have “yielded” (earned) an extra 5 UNI.

Here's a tutorial that walks through how to calculate crypto APY, step by step:

What’s a good crypto APY?

It fluctuates, but right now the highest APYs on Aave, for example, are over 3%.

Set up an alert to know when your token has an APY over 3% on Aave with the help of a bot: https://boto.io/bots/portfolio/aave/

Which crypto has the highest APY?

You’ll need to shop around, it’s changing all the time, but right this second TrueUSD has the highest APY on Aave at 9.15%.

How do I get started with crypto APY?

Get some tokens for free and build a practice wallet: 30+ Easy Ways to Get a Little Crypto to Play With, for Free

Then deposit them in a defi platform like Aave, Compound, or Uniswap.

How do I keep track of my APY?

Check the defi platform regularly. If you’re using Aave, you can set up free APY alerts: https://boto.io/bots/45970/

Learn more

  • Crypto APY calculator: How much can my crypto earn me?

  • How's my Aave portfolio doing? Track crypto APY & liquidation risk in real time

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Krystle BloughAbout Krystle

Krystle Blough is the Head of Community at Boto.io and has been working in education & automation for 15+ years. She has presented at CMX Summit and Wikimania conferences about her experience in increasing adoption of emerging technology. She ran a 50k trail marathon once and now people think she runs fast (false).

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