Why you shouldn't trust the APR
I recently had a discussion with a friend where he told me how he sold some assets and invested in something else because he got a higher APR there. This discussion gave me the idea for this video because I think that in the crypto world, people are chasing high APR's even if maybe it's not what they should do. The APR is only one indicator that you should look at. It doesn't give all the information that you need...
Check out the video to learn more
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As you noticed, the APR is one of the indicators to take into account. Sometimes the APR can be very high (very good return) but it is not possible to invest large sums.
That's a good point!
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I'm looking for APR just to add more calculations for the result IF AND ONLY IF it doesn't change until the end of contracts like dlease or bank deposit. Never look into APR in the crypto game projects and I prefer to calculate my own ROI with my own formula. 🤣
It's a good idea to make your own ROI calculation because some APR's simply seem to nice to be true and they often hide some less visible risks...
True! It's hard to trust APR nowadays. Try -> get the first result -> Calculate it with my own formula. 👍That's what I'm doing UwU.
Data from September 1st-6th:
LENM staked: 55
Average 1.6 LEN/day
Min. 0 Max. 2.4 LEN/day
Price: 66.13 LEN/LENM (09/07/2022 06:00 UTC)
Extended with linear scale:
LENM staked: 55 ~ 275 HIVE
Average 584 LEN/year ~ 43.8 HIVE
Min. 0 Max. 876 LEN/year ~ 0 to 65.7 HIVE
APR 0%-23.89% with an average of 15.92%
*State to change every day
I stopped looking at APR for a long time. I place more emphasis on the fundamentals and the utility of the tokens. If they are good, the value of the token would go up.
Totally agreed with you.
I experienced the loss several times due to high APR and I need to take this experience and change my investment strategy
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It's certainly good to look at APR's but it shouldn't be the only factor to take into consideration for our investement strategies.
It's a very common mistake to be blinded by high APR's. If the token is not sustainable and has bad fundamentals, even a high APR will not allow you to make a good investment.
Completely agree with you... High APR is sometimes (not always) profitable if you take profits OFTEN... If not, 99% you will lose money in some way :)
I like high apr's like everybody else but they shouldn't blind us from reality. 150% APR in a shittoken is not sustainable...
I agree that many tokens have an inflated APR. I also believe that some tokens create deflation as you said by paying in their own token.
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The token that you get as dividend really matters. It's easy to print a token out of thin air. But it's very difficult to give it a long lasting value.
It's definitely a factor and I think selling off the token into some sort of stablecoin makes sense in that situation. They don't realize that all of this selling pressure might not work out well for them in the end
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It's a very short term perspective and in the long run it doesn't work out most of the time
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