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Crypto Comics – What is APR




I shared my thoughts about APR and some confusing financial terms.

Table of Content

Some Takeaway

What is APR 

Different Types of APR

What is APY


What is the Point of Defi

What is Junk Bond


Defi Improvement

In Conclusion

Some Takeaways

Defi or Decentralized Finance is a dreamland. It promised financial freedom to everyone without a financial background. It runs on autopilot until it hits the wall. Worst, they adopted the ever confusing financial jargon to trick you into believing money generators and make you feel happy about earning from nothing. Of course, there are several legit Defi projects that truly can disrupt the financial industry. However, there are more projects that brand themselves as a future but it does not reflect what they promised. Let’s take a look at the terms that actually meant.

What is Interest Rate

The interest rate sounds so innocent. It is the amount a lender charges a borrower for a percentage of the amount loaned. The higher the interest rate, the higher the cost of the loan will be. However, many so-called interest rates are case-by-case-based and a simple interest rate definition is irrelevant whatsoever.

What is APR

APR or Annual Percentage Rate is for lenders’ demand for the ability to borrow their money. It is a rate without a compounding effect. The higher the APR, the more cost you pay off. However, the higher the APR, does not reflect the interest rate itself. Let me explain why here.

For example, if you have a 17% APR on your credit card, you don’t just pay off 17% of the total borrowed amount of say $2,000 or $340 but with a specific billing cycle of the 25-day result of uneven monthly fees depends on how much you owed and how fast you pay off your debts, you likely to pay more than $340. 

So the interest rate of 17% is smaller than 17% APR if you pay off slowly or you can pay off faster to get close to a 17% interest rate! 

APR is associated with cost. The less cost, the less painful it is. It encourages spending more money if possible. I saw many articles that described high APR on Defi here and here. Articles are probably mixed up with APY and APR. The fact of high ARP is more costly and risky!

The high APR is actually not a good thing in lending because it discourages the borrowers from taking out more loans!

Different Types of APR

There are many different types of APR case by case. They all work against borrowers and benefit lenders. Because you do not have money to do and try to borrow from others, people who got money have a right to play a game with you (Am I Right?).

APR can be a standard, variable, penalty, cash advance, promotional, and probably many more.

Here are how it plays out:

Standard: it is used under normal circumstances if lenders no worry about how fast they receive money with interest payments

Variable: it is used under interest rate fluctuation circumstances, particularly during or after the recession. Lenders want borrowers to bear the risks of paying uncertain interest rates rather than cost their own expenses.

Penalty: it is used under circumstances where lenders need their money on time or penalizes borrowers with extra interest payments 

Cash advance: it is used under circumstances, particularly for lenders who have a handful of cash while borrowers need cash urgently. Of course, APR is high to get full cash.

Promotional: it is used under circumstances where lenders want more pool of borrowers and are offered limited promotional rates.

You can see the pattern is more punishment than offering rewards here.

That is also why banks offer low APR in saving accounts and charged high mortgage APR which does not make any sense when they punish you to lend their money, in the same manner, to punish you to borrow their money. What a business idea!

What is APY

APY or Annual Percentage Yield. When you see yield, you automatically think about investment returns. It is not what you think in the literal sense. Even though APY included a compound interest effect, it does not guarantee such yield! 

It is a projectional interest rate that offers you an earning opportunity but it does not guarantee to have such a return. 

As you may be aware, many Defi projects offer crazy 100% APY until you get into their pool, and APY suddenly drops to 15% or less. Their argument will be “oh well, the market is bad and yield has been impacted”. The reality is that the Defi pool needs money to run on so that they can offer more opportunities to lend with higher APR to borrowers. However, APR will never be able to catch up with APY in the long term. This makes Defi a very short-sighted project from the financial aspect and turns Defi into a Ponzi Scheme.  


You know how those two terms actually work in Defi. APR is a cost associated with borrowing money with a slower rate of return. APY is to the moon a promise to lure you into a financial scheme that may never pay off such a promise in the long term.

What is the Point of Defi

For retail investors, there are not much more benefits in the long term to offer. You will likely lose money in the long term with Defi products. Probably, in my opinion, staking is the best to offer to retail investors. But what do I know? 

For institutional investors, it is a great tool to trade junk bonds!

What is Junk Bond

Junk bonds are those loans or debts that are highly likely, not able to pay off, and rated by credit-rating agencies. In financial terms, those bonds are highly likely to default. They are highly speculative financial instruments that are offered by companies with higher yields to attract more investors and wish to raise more funds to improve their operations.


Did you know that Tesla used to raise their money through junk bonds on earlier dates until the company took off so crazy that those people who invested in Tesla junk bonds suddenly made profits crazy which made the stock more speculative than ever? Well, now you know that.

Defi Improvement

One proposal to improve Defi is to tie it into projects or a way to fund projects. It can become a way to raise funds for crypto projects or companies to grow and offer returns to their investors. Olympus DAO is the closed concept of this sort. However, they will not tell you they sell your junk and raise their projects, do they?!

In Conclusion

Ever confusing financial terms trick so many people into something they don’t know but promise too well. We should rethink Defi terms to make it more transparent! 

Check out my other article

Crypto Comics – What is Tokenomics

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Crypto Research

The assumption of crypto bank is wrong



The digital money is not as decentralized as people think. Today, numerous cryptocurrency exchanges offer a wide range of digital currencies such as bitcoin, ethereum, litecoin, etc. However, this doesn’t mean that users have to trust these vendors in the delivery of cryptos. In fact, these digital currency exchanges are mainly operating based on users’ fears and fears of the authorities. Let’s take an example: imagine that you and your friends have come up with a plan to buy some bitcoins from some third party service which offers you access to a virtual bank account where you can deposit your bitcoins when needed. You set up an account at this service along with your friends and hope for the best. When Bitcoin was launched in 2009, there were no platforms available to purchase Bitcoins from other means such as debit or credit card. As a result, people relied on third parties such as crypto banks (crypto exchange) to provide them with their required amount of bitcoins. This assumption is wrong because crypto banks do not issue virtual currencies like bitcoins but only accept them directly from merchants and hold them in physical vaults under lock and key (like custodians). Instead of trusting these crypto banks with your virtual coins, what if we told you that they are a tool used by lenders or some kind of financial scheme to leverage your money with worthless tokens? These exchanges issue virtual currency called ‘xxUSD’ or ‘xxDollar’ which means they are controlled by supplies while you gave them the real money.

Cryptocurrency Exchanges and How to Not Use Them

There are so many crypto exchanges that take advantage of users’ lack of crypto knowledge to lure users into the exchange and rely on their services. Unclear disclosure of crypto products that sound attractive but risky have been presented as safe or safer than traditional banks financial products. Despite all warning listed on the exchange, advertisements always described profits that more sound than risk for users to put their money into the honey pot.

What is Cryptocurrency anyway?

A Cryptocurrency is a digital currency that is not issued or verified by a centralized government. It uses cryptography to secure the data and transactions between users, as well as has an economy that is largely handled through decentralized digital money trading platforms. Many people choose to use cryptocurrencies as an alternative payment method, as it is more convenient and open-source than traditional financial systems.

The Benefits of Using a Cryptocurrency

  • Decentralized, Baroque-level of Privacy. Because cryptocurrencies are decentralized and based on mathematics, no one –incerity or not – is responsible for the transaction or the value exchanged for them. This makes them both cyber-anonymous and highly authentication-friendly. However, as we are dealing with financial information, it needs to be verified by a third party before anything can be done with it.
  • Security aspect. Unlike government-issued money, which has been linked to global money laundering, cryptocurrencies have been relatively safe from all known human-induced threats. They have been designed to defend against hackers and counterfeiters, preventing people from putting counterfeit coins in their wallets.
  • Trustworthy. Unlike other digital currencies, such as dollars or pounds, cryptocurrencies are not linked to any particular company or government. They are not even associated with any specific country. This makes them more flexible and open-source than other digital currencies, such as dollars or pounds.

How to Crypto links to Exchange

Crypto exchanges branded themselves as issuers rather than facilitators. They are using high risky liabilities but sell your with assets like products to trick you into. You think you are having assets until the bear market hits, it turns out you have liabilities that cannot be redeemed through a crypto exchange. A bank run then occurs, and your money is totally lost without crawling back. No regulations are sufficient to protect your losses, and lawsuits will take years to comprehensively determine who’s fault to lose money. 

The Bottom Line

The aim of this article is to provide you with the knowledge you need to get started using exchange is way more risky than you think. You must understand what you buy and what liabilities you have when bank run happens. You need backup wallet to prevent the exchange rob you and lost all your money.

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Crypto Research

Binance is the crypto bank of reserve



In the crypto world, Binance is the destination destination destination for all things cryptos. It’s home to both a number of leading cryptocurrency exchanges and a wealth of lesser-known coins that may or may not have any crypto links at all. But if you ask most crypto professionals and there’s no doubt they’ll have heard of Binance – it’s probably because they are one of the largest digital asset exchange platforms in the world. And while they do have their fair share of drawbacks, including slow site performance and demand for specialist advice on trading, they have something to offer everyone else who is looking to make money with cryptocurrencies. Here are 5 reasons why you should trust Binance as your #1 place to buy & sell cryptocurrency In this blog post we’ll take you through the basics and what makes a good fit for Binance as your first port of call when buying & selling cryptocurrency. If you are just getting started with cryptos and want to see how things work from an amateurish perspective then this might be worth checking out first. 

What is a cryptocurrency?

A cryptocurrency is a digital asset that uses cryptography to secure its information. Unlike conventional cash, cryptocurrency transactions are not verified by governmental agencies – unlike banks, credit unions and credit card issuers. Moreover, unlike fiat money, no one but the owner of an cryptocurrency can print its own currency. This makes cryptocurrencies different from traditional fiat money in that they are not backed by anything: no government, corporate or other source of authority.

How to buy & sell cryptocurrency

You can buy or sell cryptocurrencies on any trading platform. If you want to buy and sell frequently, consider trading on a platform like Binance. There are many different types of exchanges, but the most popular is Coinbase. Another popular exchange is Kraken. If you are unsure where to start, look no further!

The reasons why you should not trust Binance as your first port of call when buying & selling cryptocurrency

Freaking out about Binance’s domination?

We’ve got the almost all crypto exchange bankrun in the world after FTX. There are running into Binance, because CZ, the CEO triggered the bank run time bomb and he then set up funds to prevent bank run.

The platform may be reliable, and its history goes back to 2011. It’s the biggest exchange by far in the world and it has been around for over a decade. It’s not a new concept – you’ve probably used exchanges like this for the last 10 years or so. 

The exchange is owned and operated by used to be Chinese company All trade activities are handled through a virtual private network (VPN). This is a secure way to move your assets between public and private computers. You can use different digital wallet apps such as Electrum, My Wallet, etc. to store your cryptocurrencies. There are plenty of different exchanges available on binance. 

What are the fees like on Binance?

You’re more likely to notice the high fees on Binance than Coinbase in certain situations. These include high trading volumes, high liquidity, and high trading rates. So pay particular attention to these factors when deciding which exchange to invest in. At the end of the day, we recommend setting a budget of around $100 – $250 per month (according to how much time you want to spend in the business) to avoid paying too much in fees. You can also save money in the long run by using an exchange that allows withdrawals within 24 hours.

Bottom line

If you are looking to profit from crypto trading, you need to look no further. The options are endless. In order to make the most of your investment, you need to pick the right exchange (or don’t) and make the most of your time in the market. Finding the right trading platform, understanding the differences and risks of different exchanges, and using a variety of strategies and tools can save you a lot of money in the long run. If you are new to the market or unsure where to start, look no further! The right exchange for you will work out like a charm. Just make sure you keep your eye on the prize and are prepared to take some risks. 

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Crypto Research

When privacy in crypto is worth to fight for



If you’ve spent as much time as we have researching andutiing about online privacy, you’ve probably realized that the internet is a big place at the same time. There are always new ways for people to track and see your online activities. In light of this, it’s important to understand what exactly means by “online privacy” and how much personal information an internet user is allowed to post and share online. It can be challenging to know where to start when it comes to protecting your private information online. Luckily, we have all of these great tips for helping make your online privacy a reality! So let’s get started.

What is online privacy?

Online privacy refers to the security of one’s personal information, including information such as your location, device identity, and communications, on internet-based services. These services allow users to manage their information, store and share information securely. If you’ve spent as much time researching and talking about online privacy, you’ve probably realized that the internet is a big place. There are always new ways for people to track you, see what you’re doing, and share your data with third parties. In light of this, it’s important to understand what exactly means by “online privacy” and how much personal information an internet user is allowed to post and share online. It can be challenging to know where to start when it comes to protecting your private information online. Luckily, we have all of these great tips for helping make your online privacy a reality! So let’s get started.

Know your information before you share it

Before you share any information with anyone, you should make sure that you understand what that person’s intentions are. This may seem obvious, but when you’re a new member to the internet, you might not even realize that you need to keep your data secure. It’s easy to forget how important security is when sharing digital files. Before you share information with anyone, make sure that you know what they are talking about. This may seem obvious, but when you’re a new member to the internet, you might not even realize that you need to keep your data secure. It’s easy to forget how important security is when sharing digital files. Remember: the more information you provide, the stronger your encryption will be!

Use a service that understands your data

If you’re sharing information with anyone via a computer, you’re probably already sending it through a service that understands your data, like an email account or social media feed. It may also be possible to setup an account with a social media platform, like Facebook or LinkedIn, to manage this information for you. You can also set up websites that let you share your data with third-party services, like Google Sheets for Microsoft Excel.

Crypto started privacy protection

Metamask started to track users’ IP addresses. This is a major backward movement of Metamask. Crypto was invented to secure individual privacy yet the wallet has turned users’ data trackable. Thus, we need to find a new way to protect your own data.

Secure your connection

When you’re sending sensitive data across the web, you want it to be as secure as possible. The best way to do this is to use a VPN, or virtual private network, which allows you to connect to the internet through a virtual private network. A virtual private network (VPN) is a network of computers linked through encryption and encryption algorithms. It’s necessary because an internet connection can be easily intercepted when someone’s looking to track you. A VPN uses encryption to keep your data secure, making it hard for nefarious characters to track you down.

Don’t exibit your credit card password when you sign in

You should always sign in with the same account name, password, and Angle of Payment (AOP) when signing in with any web application, like a website. If someone accesses your account through a different account name or password, they can still see your information, including the information you entered when signing in. This means that someone who has access to your account can see everything from when you signed in to what pages you were looking for. Exiting a site and sign-in is the single most popular way to share sensitive information with third parties. Avoid revealing your credit card password when you sign in with a site that allows you to sign out with the same account name, password and AOP. Remember: the more information you share, the stronger your encryption will be!


Online privacy is an important issue that needs to be discussed in connection with cybersecurity, data security and digital literacy. It is important to understand what is meant by “online privacy,” how much information an internet user is allowed to post and share online and how much personal information an internet user is allowed to download and save. It can be challenging to know where to start when it comes to protecting your private information online. Luckily, we have all of these great tips for helping make your online privacy a reality! So let’s get started.

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