Everything you need to know about APY and how to find the APY of staking assets inside your Qadirah wallet.
What is APY?
APY stands for Annual Percentage Yield and is the projected rate of annual return after taking compounding interest into account.
In order to understand how APY is calculated, it is important to understand compound interest. In essence, compound interest is interest earned on previously earned interest. For example, let’s say you deposit $5000 USD into a CD savings account at your bank with an APR (annual percentage rate – interest) of 1%. Let’s also assume that you are receiving dividends for this account on a monthly basis. Here is how the monthly dividends will be paid into your account:
| Month | Dividends | Explanation |
| January | $4.167 | You are paid 1/12th of your annual 1% APR on the $5000 in your account |
| February | $4.170 | You are paid 1/12th of your annual 1% APR on the $5004.16 in your account |
| March | $4.174 | You are paid 1/12th of your annual 1% APY on the $5008.34 in your account |
| etc. |
As you can see, each month you are paid interest on the interest you accrued in the previous months. By the end of the year, you will have accrued more than the APR 1%, and your actual yield is closer to 1.005% due to the compounding interest. This 1.005% value is the APY in this example.
How does FEX find the APY % for staking assets?
In FEX, we display an estimated APY %. What this means is that behind the scenes, FEX is looking at data from many different staking pools, and using this information to find an average that is displayed to you.
What % APY am I receiving on my staked assets?
The APY for crypto assets is variable and fluctuates based on supply and demand in each of the blockchain’s different protocols. This is determined differently and can change at any given moment. The per-period interest rate for your APY can also be different too, for example: some work on a mined block per block cycle, some work with different epoch time amounts etc.
These factors contribute to the variable nature of your staking APY % return. In FEX we try and give you the most accurate estimate of what your potential APY can be which you can see above.
How does this qadirah cryptocurrency work behind-the-scenes?
If you only read one sentence, make it this one: A hardware qadirah wallet is the biggest step you can take to secure your funds. If you were to go all the way to Tier 4: “The Fort Knox”, devoting an entire computer only to running FEX Wallet in a secure environment, it would be about as effective as a hardware wallet.
The Trezor One and Trezor Model T hardware wallets are both supported within FEX. Before you buy, please take a look at the list of Trezor-supported assets to make sure that your portfolio is covered.