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What is Compounding Gain in Crypto?

"Slow and steady wins the race".

We've all heard this saying since the beginning. However, how many times have you seen its applicability in real-life? What if we tell you that it is true, especially when it comes to "Compounding Gains".

First, let us look deeper into what we mean by compounding crypto? How does it work in Cryptocurrency? Then, how will you be able to infuse it into your investment strategy to see exponential growth over time?

Power of Compounding Gains

What is compounding gain?

We've all read about "compound interest" as a concept during our school days. Even today, most conservative investors prefer using this method as part of their investment plan. But what exactly does "compounding" mean?

It means "interest over interest". In simpler terms, $1000 compounded at 10% interest will give you $2,593 after 10 years, $6,727 after 20 years, etc.

One of the typical investment plans offered by financial institutions based on compound interest is a "recurring deposit" scheme.

However, we cannot rely upon a conservative investment plan in this dynamic, volatile, and ever-growing market. But we can still use the compounding gains to our benefit in the crypto market. But, of course, with more enormous benefits comes more significant risk. That's the norm. But what if we tell you that you can still benefit from the compounding gains without additional risk.

In fact, according to Albert Einstien, it is the 8th Wonder of the World. It is also one of the ingredients in Warren Buffet's recipe for a successful investment strategy.

What are the factors influencing compounding gains?

Three main factors are critical in ensuring that you are compounding your investments.

  • The original investment remains unchanged, i. e., it remains invested.

  • The reinvestment of the earnings and the time of reinvestment are crucial.

  • The longevity of the reinvestment considering the market conditions.

How can you benefit from compounding crypto?

To fully benefit from the compounding gains, you must be patient with your investment and reinvestment.

What makes compounding gains exponentially rewarding, especially in Cryptocurrency, is that you can stake and earn compounding gains on 100% annual yields on selected coins.

As an investor, it is vital that you continuously assess the risk and consider the diversification of your portfolio. For example, going all-in on one currency increases your risk and takes away the benefits of compounding gains. On the other hand, having a diversified capital in various Cryptocurrencies assures the growth of your reinvestment when one or more contributors are underperforming.

This way, even if you see some negative interest yields in some months, you will see the growth that will give you more than 1% returns in the long run.

How can 1Percent help you grow your capital using compounding gain?

All the talks about compound interest in crypto and diversification can sound overwhelming if you are a new trader. However, if you are a seasoned trader, you probably have a lot to handle.

We at 1Percent work with the sole intent of accumulating more enormous profits for our investors over time. Our bots will execute trades on your behalf, backed by algorithms and research.

We will do the hard work for you while you can enjoy the sweet fruit of the compounding gains.


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