## What are you really looking at when you see APY and APR while saving?
In DeFi or cryptocurrency financial products, the two most common terms are APY and APR. At first glance, they look similar, but if you confuse them, your earnings could be off by a thousand or two. So today, let's thoroughly clarify these two concepts.
## Let's start with something simpler: What does APR mean?
APR stands for Annual Percentage Rate, and the simplest way to understand it is: **how much interest you can earn in a year**.
For example, if you deposit 10,000 on a platform with an APR of 20%, after one
In DeFi or cryptocurrency financial products, the two most common terms are APY and APR. At first glance, they look similar, but if you confuse them, your earnings could be off by a thousand or two. So today, let's thoroughly clarify these two concepts.
## Let's start with something simpler: What does APR mean?
APR stands for Annual Percentage Rate, and the simplest way to understand it is: **how much interest you can earn in a year**.
For example, if you deposit 10,000 on a platform with an APR of 20%, after one
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