The difference between APY and <a href="/glossary/apr/">APR</a> comes down to one idea: compounding. APR is a plain annual rate that ignores what happens to the interest you earn along the way. APY assumes that interest is credited back to your balance at some interval — daily, weekly, monthly — so future earnings are calculated on a slightly bigger pile each time. The more often that happens, the further APY drifts above the APR describing the same product.
In crypto the figure is rarely fixed. Advertised yields on lending desks, staking services and <a href="/glossary/yield-farming/">yield farming</a> positions usually float with demand, so a headline APY is a snapshot rather than a promise. Many quoted rates also assume you keep compounding by hand, which costs transaction fees that should be counted against the return.
Read the denomination too. A yield paid in a volatile token is a yield <em>in that token</em>, not in pounds or dollars, so the value of what you earn moves with the market. Fees, lock-up periods, withdrawal delays and the risk that the platform itself fails all sit outside the number on the banner. Treat APY as one input, never as a forecast, and read the terms behind it before committing anything.
Puntos clave
- APY and APR can describe exactly the same product; the gap between them is purely how compounding is counted.
- A quoted APY is usually variable, so the rate shown on the day you deposit is not a rate you are guaranteed.
- A yield paid in a volatile token carries that token's price risk on top of whatever the percentage says.
APY — preguntas frecuentes
Is a higher APY always better?
No. A higher advertised yield usually means someone is taking more risk, and often that someone is you. The extra return may come from lock-ups, thinly traded tokens, leverage buried inside the product, or a platform with weak reserves. Compare what actually backs the yield rather than the number itself, and treat an unusually generous rate as a reason to ask harder questions.
Why do two platforms quote different APYs for the same asset?
Because the rate reflects each platform's own demand, costs and risk appetite, and because the maths behind the figure can differ. Some compound daily, some weekly. Some quote before fees and some after. Some fold in bonus token emissions that may not last. Check the compounding frequency and what the platform counts as part of the yield before comparing anything.
¿Nuevo en cripto o rellenando huecos? Recorre lo esencial en Learn, explora todos los términos A–Z o consulta los precios en vivo de las monedas que impulsan estos conceptos.