Understanding the Impact of APY on Crypto Earnings

Insight into APY in the crypto space reveals that it indicates the earnings from compound interest over a year, accurately reflecting potential profits. A 5% APY paid monthly does not simply equate to a 5% return, due to the effects of compounding. The more frequently interest compounds, the more rapidly your investment will grow. It is essential to verify the compounding frequency before engaging in staking or saving activities. APY remains the key metric for comparing yield rates across different platforms.