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What is the difference between APR and APY in the context of digital currencies?

avatarsodaDec 30, 2021 · 3 years ago1 answers

Can you explain the distinction between APR and APY when it comes to digital currencies? How do these two terms impact the returns on investments in the crypto market?

What is the difference between APR and APY in the context of digital currencies?
Digital Currencies
APR
APY

1 answers

  • avatarDec 30, 2021 · 3 years ago
    When it comes to digital currencies, APR and APY play a crucial role in determining the potential returns on your investments. APR represents the simple interest rate, while APY takes into account the compounding effect. In the context of digital currencies, where volatility is high and returns can be significant, it's essential to consider both APR and APY to accurately assess the profitability of your investments.

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