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What is APY?
The annual percentage yield (APY) functions as a crypto savings account. You can deposit a cryptocurrency asset and get a preset return rate for a certain amount of time.
You can also use APY to figure out how much money is gained on a money market account throughout the year. To put it another way, it is easy to monitor the interest growth over time using this method.
Compound interest is the term used to describe the interest you earn on your money. It refers to the amount that has been paid out on both the principal and the interest that has accrued. Because compounding allows for the creation of money over time, it is a powerful financial tool. Simple interest is earned only on the principal deposit and is referred to as such.