BullAPR vs APY
APR is the simple yearly rate. APY includes compounding, where rewards are restaked and start earning too. The more often rewards compound, the higher the APY for the same APR.
Formula
Example
1,000 coins staked at 8% APR with daily compounding becomes about 1,083.28 coins after a year, an APY of about 8.33%. Without compounding it would be exactly 1,080.
What staking rewards do not show
- Rewards are paid in the coin, so your dollar result depends on its price.
- Some staking has lock-up or unbonding periods where you cannot sell.
- High advertised APRs often come with higher risk or new token inflation.
Frequently asked questions
Is the result in coins or dollars?
In coins. Multiply by the coin price to see the dollar value.
Why is APY higher than APR?
Because rewards are added to your stake and earn rewards themselves.
Is staking risk-free?
No. The coin price can fall, and some platforms carry smart contract or counterparty risk.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
APR vs APY in Crypto Staking Explained
The difference between APR and APY in crypto staking and savings, how compounding frequency changes your yield, and what to check before staking.