What is APY?
APY stands for “annual percentage yield,” and it is a measure of the return on an investment over a year. In the context of cryptocurrency, it is often used to refer to the annualized return on an investment in a particular cryptocurrency or cryptocurrency-related product, such as a staking platform or a lending service.
For example, if a cryptocurrency staking platform offers a 10% APY, it means that if you stake your cryptocurrency on the platform for one year, you can expect to earn an annual return of 10% on your investment. This return is paid out in the form of additional cryptocurrency, usually the same type that you staked.
It is important to note that APY is a projected or estimated return, and actual returns may be higher or lower depending on a variety of factors such as market conditions and the performance of the platform. It is always a good idea to carefully research and evaluate any investment opportunity before committing your funds.