What is compounding?

In simple terms: Compounding occurs whenever profit from an investment is reinvested, to increate the base investment volume. Since the base investment volume has increased, the next interest payout will be higher. This even higher payout is - again - reinvested, so even further increase the following interest payout. Now the entire cirlce repeats, adding another layout of compounding.

Compounding creates a self accelerating effect that results in exponentially faster growth

Let's look at an example:
Three people with the same starting capital of $1,000 and a fixed interest rate of 1% daily over the course of a year.
The only difference is how each one used compounding: One doesn't use compounding at all, one uses monthly compounding and the last one compounds daily
Person A: no compounding
Investment: $1000
Daily payout: 1000 x 0.01 = $10
Profit after one year: 365 x $10 = $3650



























Total profit: $3650
Person B: monthly compounding
Starting investment: $1,000
Daily payout: 0.01 x $1,000 = $10
Profit after one month: 30 x $10 = $300

First compounding: The $300 profit are reinvested, bringing the total investment for the second month up to $1,300

Starting investment 2nd month: $1.300
Daily payout: 0.01 x $1.300 = $13
Profit during 2nd month: 30 x $13 = $390

Second compounding: The $390 profit are reinvested, bringing the total investment for the second month up to $1,690

Starting investment 2nd month: $1,690
Daily payout: 0.01 x $1,690 = $16.90
Profit during 2nd month: 30 x $16.90 = $507

Imagine this pattern repeating 10 more times for the rest of the year

Let's look at the math to figure out the final amount:
Monthly Growth: 1% => 1.01 x 30 = 1.30
Number of months in a year: 12
Yearly Growth: 1.30 to the power of 12 = 1.30 ^ 12 = 23.29 = 2329%

Total Profit: 2329% x $1,000 = $23,290
Person C: daily compounding
Starting investment: $1,000
Daily payout: 0.01 x $1,000 = $10
Profit after one day: 1 x $10 = $10

First compounding: The $10 profit are reinvested, bringing the total investment for the second day up to $1,010

Starting investment 2nd day: $1,010
Daily payout: 0.01 x $1,010 = $10.10
Profit during 2nd day: 1 x $10.10 = $10.10

Second compounding: The $10.10 profit are reinvested, bringing the total investment for the second month up to $1,020.10

Starting investment 3rd day: $1,020.10
Daily payout: 0.01 x $1,020.10 = $10.20
Profit during 3rd day: 1 x $10.20 = $10.20

Imagine this pattern repeating 363 more times for the rest of the year

Let's look at the math to figure out the final amount:
Daily Growth: 1% => 1.01
Number of days in a year: 365
Yearly Growth: 1.01 to the power of 365 = 1.01 ^ 365 = 37.78 = 3778%


Total Profit: 3778% x $1,000 = $37,780
As you can clearly see, compounding makes a HUGE difference! Even with montly compounding your profits can be six times as investing without compounding. Daily compounding is another step forward, bringing you more than 10 times to return!

But be careful: Compounding requires you to reinvest profits into the platform - which means they are only paper gains and will be gone if the HYIP crashes! There is a fine balance between compounding and cashouts that has to be adjusted as the HYIP evolves
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