What is the difference between APY and APR in cryptocurrency lending?

7 answers

• Dec 30, 2021 · 3 years ago
  APY and APR are both important metrics used in cryptocurrency lending, but they have different meanings. APY stands for Annual Percentage Yield, which takes compounding into account. It represents the total interest earned on a lending investment over a year, including the effect of reinvesting the interest. On the other hand, APR stands for Annual Percentage Rate and does not consider compounding. It only represents the simple interest rate for a lending investment over a year. So, while APY reflects the actual return on investment, APR provides a more straightforward comparison of interest rates.
  605303
• Dec 30, 2021 · 3 years ago
  APY and APR are two terms you'll often come across in cryptocurrency lending, and they do have distinct meanings. APY, or Annual Percentage Yield, is the total interest you'll earn on your lending investment over a year, taking into account compounding. It's a more accurate measure of your actual return on investment. On the other hand, APR, or Annual Percentage Rate, is the simple interest rate for a lending investment over a year, without considering compounding. It's useful for comparing different lending options based on their interest rates alone. So, while APY gives you a better understanding of your earnings, APR helps you make quick comparisons.
  661221
• Dec 30, 2021 · 3 years ago
  APY and APR are terms commonly used in cryptocurrency lending, and they do have different meanings. APY, or Annual Percentage Yield, takes into account the effect of compounding and represents the total interest earned on a lending investment over a year. It's a more accurate measure of the actual return on investment. On the other hand, APR, or Annual Percentage Rate, does not consider compounding and represents the simple interest rate for a lending investment over a year. It's useful for comparing different lending options based solely on their interest rates. So, while APY reflects the true earnings, APR provides a simpler way to compare interest rates.
  665167
• Dec 30, 2021 · 3 years ago
  APY and APR are important terms to understand in cryptocurrency lending. APY, or Annual Percentage Yield, takes into account the effect of compounding and represents the total interest earned on a lending investment over a year. It's a more comprehensive measure of the return on investment. On the other hand, APR, or Annual Percentage Rate, does not consider compounding and represents the simple interest rate for a lending investment over a year. It's a useful metric for comparing different lending options based solely on their interest rates. So, while APY gives you a better understanding of your overall earnings, APR helps you make quick comparisons.
  660132
• Dec 30, 2021 · 3 years ago
  APY and APR are two terms you'll often encounter in cryptocurrency lending, and they have distinct meanings. APY, or Annual Percentage Yield, takes compounding into account and represents the total interest earned on a lending investment over a year. It's a more accurate measure of the actual return on investment. On the other hand, APR, or Annual Percentage Rate, does not consider compounding and represents the simple interest rate for a lending investment over a year. It's useful for comparing different lending options based solely on their interest rates. So, while APY reflects the true earnings, APR provides a simpler way to compare interest rates.
  660110
• Dec 30, 2021 · 3 years ago
  APY and APR are both important metrics in cryptocurrency lending, and they do have different meanings. APY, or Annual Percentage Yield, takes into account the effect of compounding and represents the total interest earned on a lending investment over a year. It's a more accurate measure of the actual return on investment. On the other hand, APR, or Annual Percentage Rate, does not consider compounding and represents the simple interest rate for a lending investment over a year. It's useful for comparing different lending options based solely on their interest rates. So, while APY reflects the true earnings, APR provides a simpler way to compare interest rates.
  66896
• Dec 30, 2021 · 3 years ago
  APY and APR are two terms you'll often come across in cryptocurrency lending, and they have distinct meanings. APY, or Annual Percentage Yield, takes into account the effect of compounding and represents the total interest earned on a lending investment over a year. It's a more accurate measure of the actual return on investment. On the other hand, APR, or Annual Percentage Rate, does not consider compounding and represents the simple interest rate for a lending investment over a year. It's useful for comparing different lending options based solely on their interest rates. So, while APY reflects the true earnings, APR provides a simpler way to compare interest rates.
  67685