APY stands for Annual Percentage Yield and is the projected rate of return for holding/lending crypto assets in supported wallets. It is important to note that APY includes compounding interest.
The APY for crypto assets fluctuates based on each coin’s supply and demand and varies on each service (or wallet). Market dynamics can impact APY rate changes, so APY isn’t often a great determining factor over the entire course of a year, as it can change monthly or even weekly, depending on the service.
Annual Percentage Yield (APY) takes into account compounding interest, but Annual Percentage Rate (APR) does not.
What crypto wallets support compounding interest?
Great question, and luckily the answer is many! Check our Coin Interest Rate rankings.