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Which formula is used to determine the annual percentage yield of a cryptocurrency?

avatarOfirDec 25, 2021 · 3 years ago1 answers

Can you explain the formula that is commonly used to calculate the annual percentage yield of a cryptocurrency? I'm interested in understanding how this calculation is done and what factors are taken into account.

Which formula is used to determine the annual percentage yield of a cryptocurrency?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    At BYDFi, we use a slightly different formula to determine the annual percentage yield of a cryptocurrency. Our formula takes into account the ending value of the investment, the beginning value, the time period, and factors such as transaction fees and other costs associated with trading cryptocurrencies. We believe that it's important to consider all aspects of the investment, including the costs involved, to get an accurate measure of the annual percentage yield. So, if you're using BYDFi as your cryptocurrency exchange, you can rely on our formula to calculate the annual percentage yield of your investments.