By going into #BinanceEarn , you can see attractive earning percentages, such as APR 46% $STEEM , 38% $RARE , 28% $WAXP , but that doesn’t mean you’ll receive 46% profit in one month. APR (Annual Percentage Rate) is an annual rate, i.e. a profitability indicator converted to one year.

Let’s take the coin with the highest percentage. On STEEM, at the moment, the APR is 46%, meaning you might think that if you invest 1000 USDT, you’ll be able to earn an additional 460 USDT in a month. That’s not the case. In reality, your earnings per month could be at most 46% / 12 months = 3.83% per month, i.e. about 38 USDT. Overall, it seems quite good, but there are nuances here. APR is not a constant value and changes depending on many conditions. For example, if the demand for loans or usage increases, the yield can rise. When demand falls, the APR can decrease.

To estimate the actual percentage of annual income, you need to click on STEEM, then on the link "Estimated daily rewards" and see what the APR was over the month or year. As we can see, for almost half a month it was 13–15%.

Therefore, we calculate it like this: half a month APR 46%, half 15%, average value approximately 30%. These are the most optimistic conditions; according to the chart, it looks like around 25%. Don’t forget that this is an annual coefficient, so over a month it will be approximately 2%. So, by investing 1000 USDT, in a month you’ll get around $20. There’s a benefit with perpetual investments: funds accrue every day and you can withdraw them anytime.

Also, there is another obvious factor that can radically change your profit—the volatility of the coin itself. Let’s see what happened to the STEEM price since the beginning of the month.

As we can see, at the moment the price has increased by almost 60% and your profit would be much higher thanks to the price growth. If we had subscribed on 1.09, we would have hit a good period of growth. But it’s difficult to predict the behavior of the market and specific assets, especially for the long term—six months, a year—so correctly calculate the percentage returns on your earnings; always look at the graphs of APR changes and the price graphs.