What is better APR or APY crypto?
In cryptocurrency trading, APR and APY are very much the same. APY only considers simple, ordinary interest, while APY includes compound interest. So, APY is regarded as the better pick.
What does APR mean for crypto?
= (Outstanding Loan Principal) × (APR ÷ 365 ÷ 24)\n\n For example: If a user takes out a loan of 10,000 USDT with 6% APR at 12:05:00 UTC, the hourly interest rate is 0.000684932% and the outstanding interest will be 0.068493151 USDT at the beginning.
How is APR in crypto calculated?
As mentioned above, APR and APY are used frequently in crypto. APR is used to show the interest paid on borrowings like loans from DeFi applications. APY is the return earned from an investment on an annual basis. This may be on funds you lend or liquidity you provide, which compounds the interest earned automatically.
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