All about APR in Crypto Earn
When beginning to stake cryptocurrency on an exchange platform, APR or Annual Percentage Rate would be one of the key factors to consider for optimal efficiency. The higher your APR, the higher staking rewards you will receive after the lock-in period. In this article, Tokenize Xchange will demonstrate the concept of the APR in Crypto Earn and how to calculate staking rewards.
1. What is APR?
APR stands for Annual Percentage Rate, which means the annual funds that you get as investment interest when you stake your crypto by participating in the Crypto Earn Program at Tokenize Xchange. The nature of APR is simple interest, so your return depends directly on the principal amount of crypto.
2. What is Crypto Earn Program?
Crypto Earn is similar to staking! As you lock up your crypto assets to earn additional crypto periodically which means you lock up your funds safely with us to receive simple yield monthly!
>>>Read more: What to notice in crypto staking
This is an easy way for crypto investors to earn cryptocurrencies while they HODL. By subscribing to our Crypto Earn program, you can begin staking 30+ cryptocurrencies and earn handsome crypto staking rewards up to 14%! Below are some simple rules to help you with our programs.
- Deposit your cryptocurrency to our crypto earn wallet. Please be noted that the minimum amount you need to deposit is 0.01 BTC or 1 ETH.
- You are able to take out the deposit you have input on the 2nd day of every month, provided that the crypto has been locked up for a minimum timeframe of 30 days. If the lock-up time doesn’t last for 30 days, you will need to withdraw on the 2nd day of the following month.
- Enjoy your interest of up to 14%.
How to earn yield on your crypto?
The yield payout is calculated using simple yield and is credited into the wallet at the beginning of every month.
Additionally, Tokenize Crypto Earn Clients may also opt for Compound yield. The yield earned monthly will be deposited back into your principal amount in Crypto Earn. It means you will not get the yield monthly but will receive both the compounded yield and the principle at the end of the lock-in period.
>>>Read more: 5 reasons you should begin staking
3. How to calculate your staking rewards?
The yield payout is calculated using simple yield (APR) and is credited into the wallet at the beginning of every month.
The interest that you receive each month with simple yield = (APR/12)*The Principle of deposit.
To calculate the compound future value of your deposit after the lock-in period, we have the formula:
Example 1: Simple yield
On 1st Dec 2021, you stake 5,000 XRP for 1 month with the APR of 8%, on 1st Jan 2022 you will get:
Monthly yield = (8%/12)*5000 = 33.34 XRP
If you continue to leave your deposit in Crypto Earn without withdrawing, on 1st Feb 2022 you will get another 33.34 XRP in your wallet.
Example 2: Compound yield
On 1st Dec 2021, you stake 5,000 XRP for 2 months with the APY of 8%, the monthly yield of December 2021 (33.3 XRP) will be added to the principle of 5000 XRP.
Hence, on 1st Feb 2022, your deposit in Crypto Earn will be:
5000*(1+8%/12)² = 5066.89XRP
4. Update APR for BTC and ETH
From 1st December 2021, the APR in Crypto Earn for BTC & ETH will be adjusted as below:
- APR with 100 TKX staking: 8%
- APR without 100 TKX staking: 5%
The users who already staked and do not take out yield will enjoy the old APR. The new APR will apply when a user takes out yield and stake again.
>>Learn more about Crypto Earn program
Now you have understood all about APR in the Crypto Earn program. Don’t forget to follow Tokenize Blog for more updated information and new promotion!
Cryptocurrencies are subjected to high market risk and volatility despite high growth potential. Users are strongly advised to do their research and invest at their own risk.