Meaningful APY/APR

29th May 2022, Saturday

Many may know the banking system but many do not. Anyone from the bank gets a profit on different percentage of the money kept in the staking after a certain period of time by keeping some of his money in stake as per his property deposit or cryptocurrency. However, the percentage of that interest never goes above 8 to 10 percent. The money you deposit in the bank, however, never falls into disuse. Instead, your money is always used for various purposes and it is possible to make huge profits using that money. And a few percent of that profit is given to you every year or every month to the money you have saved. That means there are ways to generate more money with your money in the bank and since you know it is safe to keep money in the bank so you lock your money there year after year for some interest and safety of money. APR / APY is the calculation by which your monthly or yearly profit is calculated. However, the meaningful APR / APY issue is unknown to many. The profit system in the banking system above has no loss if the bank does not loot anyone's money or runs away.

Many may think that if the bank is robbed or looted then there is a possibility of losing all the money deposited in the bank. But if you keep your money in a government bank, the government will give you full security of your money, that is, the government of your country will give you your compensation even if it is lost.

Suppose you have a lot of assets, such as gold, silver, billions of dollars in cash, or a very large house. If you keep them somewhere or think in a very simple way, you will see that you will not get any profit from the house you bought. You spend millions of dollars to build a home and if you don't make a profit from that home then your million dollars will be just a visual product. But if you convert that money into cash, that is, if you keep your savings in the bank, maybe 10% APY / APR will start giving you profit.

But now different digital assets or cryptocurrencies will offer you APR / APY up to 100% - Infinity%. That means they will want you to buy their acids and keep them locked on their various websites for years. They guarantee you a 2x-20x money return instead. Greed for money is a big problem for us. In the past, various scammers used to do 2-20x return tricks so that later many people would realize after losing their money. But today's smart thieves who develop a beautiful project (Like $LUNA, UST) and give it a very small percentage APR like 10 percent. Just thinking 10 percent doesn’t mean too much. So, if you buy a token worth $1000000 or 1 million USD and lock it on different websites like Binance or Binance for one year, after one year you will get 100k USD from there. This means that after one year you will get 100,000 USD plus one million USD for just 10%. But how can the cryptocurrency that you have been locking up so much money for one year be able to generate more money from your money? When you try to find the answer to a question and see the answer there is no source from which they can not generate 100k USD for your profit then you will realize that there is adulteration in it. That means you will lose your money before your desired one year arrives. When you see a lot of stable coins in cryptocurrency you think they are stable they are never stable but they are controlled by someone. Which can lose its value or break its stability at any time. As you can see in $LUNA USD.

Moral of the contact is, it is foolish to think of any profit from it to enhance the beauty of your home. So it is not right to make money from everything, not even invest the savings money in a specific project. You will invest money that you will not lose if you lose money.

That's it, hope you like my content. :)