đ§ Crypto Glossary â Day 48
đ APR vs APY
Two ways to show how much you can earn with your cryptos.
đĄ The difference lies in whether or not compound interest is included.
đč APR (Annual Percentage Rate)
It is the annual simple interest.
đž APY (Annual Percentage Yield)
Includes compound interest. In other words, you earn on what you have already earned.
đ Practical example:
"I was offered 10% APR or 10.5% APY... I chose APY because it automatically reinvests the earnings."
đ 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! đđ
