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The APY in crypto is key to seeing the potential of an investment 🚀. It goes beyond the APR. It includes compound interest. It provides a more complete picture.



In the crypto world, the APY changes depending on where you invest:

- Loans: They pay you interest at a fixed APR.
- Yield Farming: You move assets looking for more yield 🔥.
- Staking: You lock up crypto to earn rewards. Common in PoS networks 🌕.

The formula is somewhat complicated. It has to do with interest rates and compounding periods.

It seems that calculating APY in crypto is not so simple. The market is volatile. There are liquidity risks 💹.

The APY is useful, yes. But it's not everything. You have to think about market instability. And how much risk you want to take 🧠.

It is surprising how compound interests make APY so important in crypto. It better shows the potential benefits that APR 💪.
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