The difference between APY & APR

APY and APR in the realm of cryptocurrency play vital roles in determining the interest earned on investments, significantly impacting the returns garnered from saving or lending crypto assets.

APY, short for Annual Percentage Yield, factors in compound interest. This means that investors benefit from higher returns as interest is calculated not only on the initial principal but also on the interest accrued over time. Consequently, the reward grows continuously, fueled by the accumulation of interest alongside the principal amount.

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