Annual percentage yield (APY) acts as a cryptocurrency savings account similar to an annual percentage rate (APR) account. You may deposit your bitcoin (or another crypto asset) and receive a fixed rate of return over a specific period of time.
The annual percentage yield (APY) is a method of calculating the amount of money earned on a money market account over the course of a year. To put it another way, this is a technique to track how interest accumulates over time.
The interest you earn on your funds is referred to as compounding interest. It refers to the amount received on both the principal amount (the money you put into the account) and the interest that has been accumulated. Compounding makes it possible to create money over time, which is why it is such a strong instrument for investment. This is not the same as simple interest. The term "simple interest" refers to interest generated just on the main deposit.
