Pay attention to APR vs APY

Many exchanges offer interest rates on your bitcoin and other cryptocurrencies when you deposit with them. When shopping for the best interest rates, pay attention to whether the rate is APR or APY. The difference is subtle, but important, especially for large amounts.

APR, or Annual Percentage RATE, gives you the rate at which your original deposit accrues interest. If you allow it to compound, rolling the interest into the original amount, the APR number does not take that interest into account - so you're also earning interest on your interest.

APY, or Annual Percentage YIELD, gives you the amount at which your deposit will pay out after one year. It takes the interest that you're earning into account on that payout. You're not earning any additional interest on the interest, because it's already been factored into the APY number.

This site has a handy calculator to help you see the difference: https://www.aprtoapy.com/

Edit: A quick edit for something u/MegaUltraHorndog pointed out: Pay attention to where your interest on the deposit goes.

APY interest must be rolled back into the original deposit in order to work, and the money can't be touched for an entire year in order to get that APY number. If you withdraw any of it early, you're not getting the APY percentage.

APR interest is often deposited in a different part of the account, so you have to manually roll it back in yourself if you want to earn interest on it. The good part is, you're still earning the same rate, even if you withdraw the interest, or take your money out early.

I hope that clears that up.