When I first got into crypto, I made this mistake too: I saw a platform advertising “APY 888%” and got so excited I almost put all my principal into it. Later, I figured out that APR is simple interest—it doesn’t account for compounding—while APY includes compound interest. That’s why the APY number naturally looks better than the APR number. 🙃
Here are a few things you and I can easily overlook:
① For the same amount of money, the difference between APR and APY is whether interest compounds. Don’t let the bigger number dazzle you;
② APYs in the hundreds or even thousands are often tied to lockups, heavy token sell pressure, or even Ponzi-like structures. If the source of the returns isn’t clear, stay away;
③ If you’re considering it, first ask: “Where is this interest actually coming from?” If the source is unclear, that’s a red flag.
Pretty numbers can easily sway you, but protecting your principal should always come first.
Have you ever fallen into this trap? Share your story in the comments—if it helps even one person avoid getting scammed, it’s worth it.
#避坑指南 #AvoidScams
Here are a few things you and I can easily overlook:
① For the same amount of money, the difference between APR and APY is whether interest compounds. Don’t let the bigger number dazzle you;
② APYs in the hundreds or even thousands are often tied to lockups, heavy token sell pressure, or even Ponzi-like structures. If the source of the returns isn’t clear, stay away;
③ If you’re considering it, first ask: “Where is this interest actually coming from?” If the source is unclear, that’s a red flag.
Pretty numbers can easily sway you, but protecting your principal should always come first.
Have you ever fallen into this trap? Share your story in the comments—if it helps even one person avoid getting scammed, it’s worth it.
#避坑指南 #AvoidScams