APR is the annual percentage rate you earn or pay without compounding. In crypto, APR shows how much you might earn from lending stablecoins on DeFi protocols or from staking tokens on proof‑of‑stake networks. This guide breaks down how crypto lending APR is set, how staking rewards are generated, how APR compares to APY, and what risks and fees can change your net return. You’ll also learn a simple framework to judge offers and avoid common traps. Quick example: a 10% APR paid monthly turns into a 10.47% APY if you reinvest every month—compounding matters.

KEY TAKEAWAYS

• APR in crypto is a simple annual rate; APY includes compounding and is what you actually realize if you auto‑reinvest.
• Lending APR changes with pool…