When you heard about Staking Crypto Assets, what is the notable element you will check ?
Mostly, one of the answers is APR (Annual Percentage Rate) and APY (Annual Percentage Yield).
In Crypto world, we will be introduced with these two terms, APR and APY.
Most people get confused and think these two terms has the same meaning. But APR and APY have different definition.
We will learn about APR and APY through the explanation below.

What is APR ?

APR or Annual Percentage Rate usually refers to the annual interest rate that will be charged to a borrower and then paid to the investor.
APR defined as percentage that represents the annual fee during the loan period or the income received from the investment period.
In crypto world, when you stake your crypto assets, the APR will be the interest amount that will be received for the bonded assets.

What is APY ?

Annual Percentage Yield known as APY is a projection result of the annual return after calculating the compound interest.
APY is the indicator measuring the nominal obtained which then is calculated for a year. So we can say that APY is a method used to calculate the interest over time.
In APY, the interest will be calculated and bundled for one year period.
Compound interest is obtained from the assets that we stake for certain period. APY is one of the factor alluring people to invest.

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