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Why to care about APR ?

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Written by   62
1 month ago

I've noticed so many investors caring so much about APR - Annual Percentage Rate. While I don't notice a lot of talking about MPR - Monthly Percentage Rate or DPR - Daily Percentage Rate.

I understand that the long term is the best thing to consider in this situation, but could we apply this to crypto as well ? Especially knowing how the price is not that stable, and it can be pumped and dumped. I think trading in this case could be more profitable than just holding.

Let's suppose that we have a high APR of a coin we hold. But the price of this coin may go much lower than that. So, we will have a lot of coins with high APR, but much lower price. In this case we are losing for holding but not winning anything. That's in the case if it's not a stable coin.

APR could be beneficial only in the case of stable coin. That's why investors are so excited when they see a high APR for a stable coin. In the case of the coin or the token we earn from curation, it's clear that the APR is not always beneficial in case it's not a stable coin.

So, generally talking about APR for any cryptocurrency is not right in my opinion.

APR is good to care about only with a stable coin !


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Written by   62
1 month ago
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