Krystle Blough • • DeFi
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/
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).