APR in Crypto: What is it and How to Earn with It?

APR = Annual Percentage Rate. In crypto, it is basically your annualized earnings from putting money in staking, loans, or yield farming. Here’s the essential part:

Where do you see APR?

1. Staking: You lock your crypto (Ethereum, Cardano, Solana) and the network pays you for keeping it secure. The APR is what you earn annually.

2. DeFi Loans: You lend your crypto on platforms and earn interest. The APR tells you how much it yields annually.

3. Yield Farming: You provide liquidity in DEX and receive rewards in tokens. The APR is the estimated yield from providing.

4. Crypto Savings Accounts: Some exchanges offer interest-bearing deposits. The APR shows the annualized rate.

What you need to know:

• APR vs APY: APR does not account for compound interest. APY does, which is why it is generally higher (you reinvest gains automatically).
• Rates change: The APR fluctuates according to the market, platform policies, and network movement.
• There are risks: Smart contracts can fail, the market is volatile, platforms can go bankrupt. Research before investing money.

TL;DR: APR is your potential annual earnings. Also look at APY, understand the risks, and don't invest what you can't afford to lose.