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Crypto compounding: 9th wonder of the world

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by COINS NEWS 208 Views

You may have heard of this guy, Albert Einstein, who once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”.

I'll add to that that crypto compounding or staking for a % apy id th ninth wonder of the world. As price is currently in the lower areas, let's focus on getting more crypto without doing anything.

Staking your crypto for a percentage of returns meand you'll add up to your amount of tokens automatically. While there are many places and methods of staking, for most this means that it will compound over time.

Let's say you start staking with an APY of 6% of token A. When you invest 1,000 at start of year one, you'll have earned an additional 60 tokens. The year after that this will be 63,6. After ten years of staking you'll have earned 790 tokens for "free".

On top of that, maybe the fiat value tripled in the 10 year period adding up to your earnings.

Now, when prices are low, you'll be able to grab a lot of tokens of a given cryptocurrency and can start staking to increase your future earnings.

submitted by /u/n1ghsthade
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