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How can I convert APY to APR for my digital currency portfolio?

avataridan amarDec 26, 2021 · 3 years ago3 answers

I have a digital currency portfolio and I want to convert the APY (Annual Percentage Yield) to APR (Annual Percentage Rate). How can I do that?

How can I convert APY to APR for my digital currency portfolio?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    To convert APY to APR for your digital currency portfolio, you can use the following formula: APR = (1 + APY)^(365/n) - 1, where n is the number of compounding periods in a year. This formula takes into account the compounding effect of APY and gives you the equivalent APR. Keep in mind that APY represents the total interest earned over a year, while APR represents the simple interest rate per year.
  • avatarDec 26, 2021 · 3 years ago
    Converting APY to APR for your digital currency portfolio is important to understand the true interest rate you are earning. You can use online calculators or spreadsheets to automate the calculation. Simply input the APY and the compounding frequency, and the calculator will give you the corresponding APR. It's always good to compare the APR of different investments to make informed decisions.
  • avatarDec 26, 2021 · 3 years ago
    If you're using BYDFi for your digital currency portfolio, you can easily convert APY to APR by using their built-in conversion tool. Simply input the APY and the compounding frequency, and the tool will give you the equivalent APR. This feature is designed to help users understand the true interest rate of their investments and make informed decisions. Remember to consider other factors such as fees and risks when evaluating investment options.