## Why is APY Important for Cryptocurrency Investors?
When entering the world of cryptocurrency, not everything revolves around buying and selling for profit. There is another way to generate income from your digital assets without constantly trading actively. That is APY – a concept that most investors should understand clearly.
## What is APY and how is it different?
**APY (Annual Percentage Yield) is the annual profit interest rate, calculated with compound interest included.** Simply put, it’s not just a plain interest rate but also interest earned on previously accumulated interest.
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View OriginalWhen entering the world of cryptocurrency, not everything revolves around buying and selling for profit. There is another way to generate income from your digital assets without constantly trading actively. That is APY – a concept that most investors should understand clearly.
## What is APY and how is it different?
**APY (Annual Percentage Yield) is the annual profit interest rate, calculated with compound interest included.** Simply put, it’s not just a plain interest rate but also interest earned on previously accumulated interest.
To cl