If you don't already, you need to understand the difference between APR and APY. Otherwise, you will sound like a fool.

Return on investments are not expressed by months, weeks or days. They are expressed annually.

So when you say, "You can get 2% of APY/month", or "with a 1% interest/week", or "if you coumpound interest on a 10% APY", then you sound like a fool.

There are two different acronym you need to understand.

APR : Annual percentage rate; it's the annual rate of return on an investment, without any compounding.

It's basically the return you realise by lending (or staking, etc.) an asset after a year, if you do not touch it (no compounding). So, if you invest $100'000 with a 10% APR, you will get a return $10'000 after a year (10%).

APY : Annual percentage yield ; it's rate of return earned on an investment, taking into account the effect of compounding interest.

It's the return you realise when compounding the interest whenever it's possible to do it. The compounding can take place daily, weekly, monthly, annually. It depends on the terms & conditions of your investment.

Compound interest: it's the fact the interest accrued on your investment is (automatically/manually) added to your investment and start accruing interest as well.

An APR where you can compound interest daily is going to be a much higher APY than an APR with monthly coumpounding.

Let's take a few examples:

• 12% APR. That's 12% per year (or 1% per month if you want). So if you invest $100, you get 12$ a year (1$ every month). After a year, you have $112.
• 12% APR allowing you to monthly compound. That's a 12.68% APY. So if you invest $100, you get 1$ the first month (that you coumpound), $1.01 the next month, $1.021 the third, $1.0303 the fourth, and so on.
• 18% APY with a daily compound, is a 16.56% APR.
• 45% APY with monthly compound, is a 37.18% APR.

I hope that helps some of you to better understand the financial aspects your investments and use the correct terminology, so you don't look and/or sound uneducated.

Have a great day!