🧠 Crypto Glossary – Day 48
📈 APR vs APY
Two ways to show how much you can earn with your cryptos.
💡 The difference lies in whether or not compound interest is included.
🔹 APR (Annual Percentage Rate)
It is the annual simple interest.
🔸 APY (Annual Percentage Yield)
Includes compound interest. In other words, you earn on what you have already earned.
📌 Practical example:
"I was offered 10% APR or 10.5% APY... I chose APY because it automatically reinvests the earnings."
📚 Did you know? Now you do.
Keep following the series and learn crypto without smoke or twists.
One concept a day and becoming less of a noob! 😎🚀
