Yahoo Finance Binance Offers new APY Returns for Bitcoin and Others
The largest crypto exchange by trading volume, Binance, is set to become a choice platform for investors looking for high Annual Percentage Yield (APY) returns on their crypto investments.
New Return Scheme is Geared Towards Attracting new Users
According to an announcement released today by the exchange, it is going to be upgrading its old APY structure to Flexible Savings that offers ten times earnings on major cryptos such as ADA, BTC, BUSD, ETH, and USDT.
In previous times, the old APY structure offered users an equal earning percentage irrespective of the amount saved. Then, it offered 0.5% earning on the flagship crypto asset (BTC), a 0.8% earning on Binance USD (BUSD), while Tether USD (USDT) earning was 1.2%. Earnings on Cardano token (ADA) and ETH were pegged at 0.24%, respectively.
In this new upgrade dubbed Flexible Savings, the structures are now divided into three tiers for BTC, BUSD, and USDT while it is just in two tiers for ETH and ADA, and the APY is of unequal percentage.
Bitcoin Savings to Attract 5% APY
With Flexible Savings, less than 0.01 on BTC investments will attract 5% APY. One within 0.01 and 0.5 BTC will see 1% APY, while investments above 0.5 BTC will receive a 0.1% return. For BUSD, the first tier is 0-500 BUSD, the second is above 500 to 20,000 BUSD, while the third is savings above 20,000, which attract 7%, 1%, and 0.4% APY, respectively.
The three tiers structure of USDT APY includes 0-2000 USDT, 2,000 to 75,000 USDT, and above 75,000, which will see 7%, 4%, and 0.5%, respectively.
However, only the new APY of ADA and ETH come in two tiers. The tiers on ADA is 0-500 and above 500, which attract 1% and 0.7%, respectively. Savings less than 0.02 ETH attract 2.4%, while saving above 0.02 will receive a return of 0.1%.
APY refers to the amount of interest earned on an investment over one year. It is a financial technique used by financial institutions to attract investors. So, the higher the APY, the better the chances of attracting new investors.
As of press time, Binance native token, BNB, is trading for $430 after losing over 8% of its value in the last 24 hours due to the bloodbath in the wider crypto market.
This article was originally posted on FX Empire
