Earning yield on your crypto assets with these simple tips

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When it comes to assets, one of their benefits is the fact that they could earn yield. Within the crypto realm, there is often a distinction made between investing and borrowing. You could use your crypto assets to do one of those, depending on your risk appetite. In this article, we will explore how you can earn yield on your assets and track the progress of your portfolio.

Annual Percentage Yield (APY) on crypto

This rate is referred to as APY and takes into account the compounding of your crypto assets. You receive APY when you are investing your digital currencies into projects or other investment assets created by companies. In general, you could argue that investing is riskier than saving, as is true for fiat currencies as well. However, in crypto, this does not always hold. There are relatively safe wallets that have a high APY with a strong footprint across the market.

Annual Percentage Rate (APR) on crypto

As you might have guessed, APR does not take into account compounding. It simply refers to a percentage that you receive when staking your assets. When you compound, you will have higher returns as the yield is included in the subsequent period. This does not hold for APR, and therefore it results in lower returns.

Keeping track of your portfolio’s growth

If you are interested in creating a holistic view of your portfolio, a crypto tracker might do the trick. Such a tracker allows you to get insight across your asset portfolio while optimizing for the highest possible APY or APR your risk appetite desires. For example, you can use multiple wallets and link them to a single crypto tracker.

How a crypto tracker connects to your holdings

Connecting wallets with a tracker do not require you to provide any personal details (e.g., Private Key or e-mail address). They simply connect with publicly available data through the Public Key. The tracker looks up the transactions on the blockchain and provides an overview of your holdings. This is beneficial, as it also takes into account transactions you make and compound interest received. Through this, you are able to have a real-time view of your portfolio’s growth.

Selecting the wallets that work for you

When it comes to digital assets, there are many wallets you could use to store your holdings. Therefore, you should check with your crypto tracker which wallets are supported. Especially for the large assets on the market (e.g., Ethereum and Bitcoin), many wallets are supported and allow you to track the value from a single place.

Delta.app is a good example

One of the leaders in the field is Delta.app. They do not only provide an overview of your cryptocurrency assets but also include traditional asset types such as stocks and bonds. Interested to learn more about what they offer? You can visit their websites to learn about the features and assets they cover.

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Watch My Wallet has everything you need to know about money, written by real people who’ve been there. Inspired by the philosophy of Early Retirement Extreme (ERE), our goal is to make informed decisions about our finances in order to achieve financial independence.