Are you immersed in the world of cryptocurrencies and hearing terms that sound like Chinese to you? 🤯 Don't worry! Today we break down two KEY concepts that every beginner must master to understand their crypto finances: PNL and APR. 📈 PNL (Profits and Losses) It is the thermometer of your investments. It indicates how much you have gained or lost. * Realized PNL: Your gains or losses that are already confirmed! from closed trades. * Unrealized PNL: Your gains or losses 'on paper' from positions you still have open. It can change with the market price! 💰 APR (Annual Percentage Rate) It is the simple interest rate you earn (or pay) annually. * Note: Unlike APY, APR does NOT consider 'interest on interest' (compounding). * If you see a 10% APR, your annual gains are calculated on your initial capital. 💡 Extra advice: Beware of APY! It is always higher than APR if there is frequent compounding (and in DeFi, there is almost always!). If you are looking for the real return with reinvestment, look at the APY. Understanding these basics is your first step to making smart decisions. #Cryptocurrencies #Blockchain #Tradingtypes101 #PNL #APR #DeFi #Investment