What are the advantages of using APY instead of APR in the context of cryptocurrency savings accounts?

3 answers

• Dec 27, 2021 · 3 years ago
  APY offers a more accurate representation of the potential earnings on your cryptocurrency savings compared to APR. It takes compounding into account, allowing you to see the effects of reinvesting your earnings. This can result in higher overall returns on your investment.
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• Dec 27, 2021 · 3 years ago
  When it comes to cryptocurrency savings accounts, APY is the way to go. Unlike APR, APY factors in the compounding interest, which means your earnings can grow at a faster rate. This is especially beneficial in the volatile world of cryptocurrencies, where even small differences in returns can make a significant impact on your savings.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using APY instead of APR for cryptocurrency savings accounts. With APY, you can accurately assess the potential growth of your savings, taking into account the compounding interest. This can help you make more informed decisions and maximize your earnings in the long run.
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