Which is more important for earning interest on cryptocurrencies, APY or APR?

3 answers

• Dec 29, 2021 · 3 years ago
  APY and APR are both important factors to consider when earning interest on cryptocurrencies. APY, or Annual Percentage Yield, takes into account compounding interest, which means that the interest earned is reinvested and added to the principal. On the other hand, APR, or Annual Percentage Rate, only considers the simple interest rate without taking compounding into account. In general, APY will be higher than APR for the same investment, as it reflects the actual interest earned over a year. Therefore, APY is usually considered more important for earning interest on cryptocurrencies.
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• Dec 29, 2021 · 3 years ago
  When it comes to earning interest on cryptocurrencies, APY is definitely more important than APR. APY takes into account the compounding interest, which means that you earn interest not only on your initial investment but also on the interest you have already earned. This can significantly boost your overall returns. On the other hand, APR only considers the simple interest rate without taking compounding into account. So, if you want to maximize your earnings from interest on cryptocurrencies, always look for the highest APY available.
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• Dec 29, 2021 · 3 years ago
  Both APY and APR are important when it comes to earning interest on cryptocurrencies. APY takes into account the compounding interest, which means that your interest is reinvested and added to your initial investment. This can result in higher overall returns. On the other hand, APR only considers the simple interest rate without taking compounding into account. While APY is generally considered more important, it's also worth considering the APR to get a better understanding of the base interest rate. At BYDFi, we offer competitive APY rates for earning interest on cryptocurrencies, ensuring that your investments grow over time.
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