“Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn't, pays it.”
Albert Einstein
Compound interest is considered to be holy grail of investing. It’s probably one of the best way to get maximum return out of your investment. But unfortunately no banks or investment systems usually offer such investment avenue to commoners. Compound interest is the addition of interest to the base sum of a loan or deposit or simply put, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the base sum plus previously accumulated interest.
Why compound interest is so special that everyone is so hyped about it?
If we use compound interest for good, we can harness its incredible power to help push our money-making ability. If you were to make initial deposit of $1,000 just once, compound interest used for used only 5 years, with earning a 10% monthly, do you have any idea what your return of investment would be worth? Probably not. I didn’t know either. So I used compound interest calculator to check and I learned that your total balance would have grown to $304,481.64.
Does that seem crazy to you, too? With that example you can see clearly how powerful the force of compound interest really is. What is more – probably the most important aspect of compound interest is your investment period. The longer you keep your investment going and the earlier you start, the higher your final Return Of Investment (ROI) will be. Try investing $1 per day (average price for a cup of coffee), at 12% per annum and see what happens in 3-5 years!
Compound interest and cryptocurrency
You may be wondering: ‘So what cryptocurrency has to with it? My compound interest ROI would be already great when I’d invest money in standard compound interest options, for instance trust funds, mutual funds or venture capital funds. That may be true, but what if I told you that you can do even better?
Now, imagine that instead of Fiat money you are using Bitcoin as your asset. Simply put, you will start with 1 BTC initial deposit, earning 6% that compounds daily. Let’s go even further, in the second month, you will be earning interest on 1,005 BTC. On the 3rd month, your new account balance will be 1,010 BTC, having earned 30 days of interest totaling 0,005 BTC. This process repeats month over month until you decide to withdraw your funds.
After 12 months, when no additional funds were added to the deposit balance, you’ll have an account balance of 1,062 BTC (with 0,062 BTC of interest earned over that period). If your initial deposit was 2 BTC, your total balance after 12 months would be 2,124 BTC. When, your deposit was 5 BTC, then your balance would be 5,309 BTC. As you can see compound interest increases exponentially and depends greatly on both initial deposit amount and the investing time.
Standard compound interest investing
Compound interest is one of the most powerful financial tools for individuals and businesses to ensure long-term financial stability. The key is patience. So at this point you are convinced to use the power of compound interest, so you analyze your options. With standard financial instruments of Fiat investing you probably will need to consider: thinking about liquidity, stop-limit orders, exchange arbitrage, algorithmic trading, market making, and tiered pricing by trade volume – these are just a few of the concepts you may encounter. Learning all this stuff might tedious and tiresome, and not everyone is interested in financial topics anyway.
Compound interest + PoS cryptocurrency = MyCointainer, the key to financial freedom
What if I told you that we have something better already? Instead of simply HODLing your cryptocurrency or using confusing Fiat based investment vehicles you may double profit from cryptocurrency with Proof-of Stake coins and compound interested. You can use MyCointainer to start earning interest. With MyCointainer you have access to unique feature called compounded compound. You will be able to get profit from coin staking, which means you will generate more coins and every generated coins will be a automatically subject to compound interest too! What is even more awesome is fact that MyCointainer is fully automatic one-step solution. All you need to do is to choose your cryptocurrency, you can choose multiple at the same time, they all will be staking and compounding at their own pace. And that’s it – all you will have to do next is to watch your money grow.
Happy staking!
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