What is 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

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

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

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

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

Invexic.net Octoin plattform crypto Blockcext wealth bitconnect MonetizeCoin hyip cryptocurrency interest bcc lending referral BankCoin daily Exacoin double your money get rich Numivcoin experience btc reinvest HedgeConnect scam coin paying profit BTChash USI-TECH Pandex high yield interest program compounding MiningBot mining cryptoxchanger payout LTCminer.com Airfio generator affiliate Dekado faucet Soin Payvic proof Goldgate test calculator bitconnectcoin auto reinvestment review investment strategy bitcoin