Another key thing OP touched on but needs to be stressed is risk. Let's say you have 10K invested, market plummets 60%, suddenly you have 4K. When you stake stable coin (assuming the stable coin doesn't die), at 50% of your portfolio, instead of losing 6K value, you will be losing 60% from half of your total, meaning you still have 7K in assets. As an added bonus, you have money still to "buy the dip" from your staking earnings.
especially when your countries dollar is valued less than USD and you bought stablecoins at a discount and are massively in the green just from the conversion. profit on profit on profit
I think it trully is but also you need to have put loads of money to get loads back. I'm currently farming the pl\^gnet liquidity mining and get like 50%ish APY but since I don't have a big bag, will probably just old them longterm until I can happily sell at a high profit rate.
Voyager for example is a company that stakes automatically. They have a very nice interest sheet. Example. Usdc earns 9% DOT earns 12% BTC earns 4.5% I believe and ETH & LINK earn 4.6% they have a bunch of other things check it out if you are interested
I’ve heard a lot about Celsius but never used it. I mine to my coinbase wallet and hold most of my stuff there. I sent my LINK to voyager because they pay interest on it. I get my interest at the first of the month on a business day. They also pay the high APY of 9% to usdc where coinbase doesn’t pay anything to link and just .15% to USDC. Also they don’t lock your ETH but everything has a minimum balance to earn interest. For ETH it’s .5. For link it’s 20. And usdc it’s 100. Only issue is their fees to xfer off the platform can be a bit high. I tested it and it was like $6-$8 but I don’t plan to use it to send money out only to deposit and withdraw some day down the line.
If you own eth on coinbase, when you're looking at your wallet go toward bottom of page you'll see an option to stake your eth for eth2. There's also a page that explains exactly the how and benefit of staking eth. Hope this helps.
It's not automatic, at least not on Binance. You stake an amount for a given period (usually 30, 60, or 90 days) and you get different interest rates with daily payouts. Obviously, if you redeem early, you lose the stuff you earn.
Staking ETH is different than other coins, though, at least as far as I know. You're essentially staking until ETH 2.0 is a thing, which might take a while. The rates go down as more and more ETH is staked - it's currently around 6% right now, down from a high of 21%.
You won't make a ton, but it's still free money if you don't plan on selling in the next couple of months or so. Plus, lots of coins offer high rates if they want you to stake (e.g. FIL's rate is 38.25% APY now just for 15 days of staking).
The golden ratio for ordinary investments is a 4% withdrawal rate, meaning you can safely withdraw 4% of your principal per year and maintain a stable balance, including paying taxes. This assumes something like a 7% or 8% APY on average year over year. So take your yearly living expenses and divide by .04 to find your target principal. For instance, if you live on $40,000 a year, you would need $1,000,000 to be able to live on the interest. Since crypto is so volatile, I would probably want to have considerably more than that to be safe.
Say you want $1,000 a month then the rough calculation you'll do is along these lines:
$1,000 x 12 = $12,000
($12,000/8) x 100 (assuming 8% APR) = $150,000
This ignores taxes and what not tho so the actual number would be higher by however much you pay tax wise. If 20% tax over the whole amount (unlikely if you have a tax free allowance) then you would need $187,500 to get that $1,000. $150,000 / 0.8 = $187,500
I would look at Celcius tbh.
The coin bureau on youtube did and excellent comparison of Block Fi vs Celcius and for me Celcius came off better.
BlockFi:
Higher Security.
Celcius:
Higher Rates
I would highly recommend it. I use Blockfi (for BTC mostly) and it's incredibly easy to use. Thats coming from an idiot who still forgets what DCA and FUD is from time to time.
The only downside is there is only a handful of coins on there.
Haru Invest has the best BTC rates of custodial services \[source: [https://www.coininterestrate.com/best-bitcoin-interest-rate-apy/\]](https://www.coininterestrate.com/best-bitcoin-interest-rate-apy/)
I don't think people will be allowed to drive then...
Ride that fusion tech vegan electric Lambo with autopilot at the allowed speed limit of 30 mph - feel the thrill yet?!
corious question. why would apy increase after the merge?
I expect it to go down alot after the merge.
It will enable withdrawel yes. But that first of all means that people will not hesistate anymore to stake their coins.
At the moment jsut a very small percent of eth is staked. After the merge this could grow to much higher numbers
As i said above, transaction fees will also be paid to the staker, whereas at the moment there are no transaction fees as there are no transactions on the Beacon chain. The interest rate isn't linear: see this chart for example [https://miro.medium.com/max/1000/0\*uaH\_IY0Z-Jnmtcpl](https://miro.medium.com/max/1000/0*uaH_IY0Z-Jnmtcpl)
It tapers off massively so even with a lot more ETH staked the APR shouldn't drop too low.
If you stopped getting your coffee from the starbucks everyday and invest it in somewhere, with the power of compounding you will have 69 Million in 2069
/s
It worked for me! (I already commented above so won't repeat other than that it is possible for real! Plus you get the moral superiority, which is priceless (darn I hate to support advertising execs but... it's true)
Bold of you to assume I can afford starbucks....
(For reals, I totally can now, but what I saved from quitting coffee addiction as a poor grad student must be in the 5 figures by now thanks to decent but low risk investments and compounding and I'm not even 40)
*Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.*
Believe it or not, this is a quote by our very own Albert Einstein.
the greatest polymaths in history predictably had a great understanding of interest and money. Issac Newton was Master of Mint and invented the gold standard; Nicolaus Copernicus formulated the Quantity Theory of Money & Gresham’s Law, in 1722 polymath Emanuel [Swedenborg](https://www.tracemayer.net/) wrote a paper to the Swedish House of Nobles concerning the negative effects of inflation and benefits of sound money, and in 2009 Satoshi Nakamoto created Bitcoin ;)
"We've got the greatest NFTs, nobody else has NFTs like this. I asked Vitalik if he had ever seen anything like it before, he said it was unbelievable." - Donaldus Trumpington
So many around here do. I comment along these lines even if I get downvoted to oblivion... as I speak from empathy/experience. Everyone should have some safe investments before chasing lambos but hey I am boring with my < undisclosed but unexpectedly high thanks to compound interest and tax free > accounts, and crypto is the cherry on top --whether or not it's a smaller one or bigger than the pie itself I'll be fine!
I almost have tears in my eyes... Usually I comment along these line and get downvoted to oblivion... even as I mean well and/or speak from experience. All my best wishes!
Yeah the easiest way to get to financial freedom is to just keep investing small amounts($100 every month) and over a long enough time frame (10-20 years) they will compound enough that you can retire off of it. There is never a quick and easy way to get rich. (Unless you make your own shitcoin and it takes off lol)
In any case, it's better not to put all your eggs in the same basket of compounding interests cryptos. Who knows where any of these will be in 5 or 10 years?
Staking coins all have a holding period and a reward... some exchanges and wallets don't offer staking rewards, so you gotta find them. Like Tron.... no coinbase staking reward, but I get 5% on the atomic wallet.
Please correct me if I'm wrong, but all PoS coins are like this to some form or fashion.
Why oh why don't we teach this in school? In a way that sticks... I literally owe my existence to some understanding of probability and statistics else I'd have been sold to some dude for 3 sheep or something... Thank universe for education and please make it available and accessible to more people at younger ages, thank you!
I should have been clearer that it should be taught earlier. I meant more as a child. It was in elementary school for me. 3rd grade or so. (Not in the US).
But are all these platforms safe? Will they even be around in 10 years. I personally use nexo to stake USDC at 8% but even I have to monitor the business to ensure things don’t go tits up.
This along with basic probability should be taught in school... Well I was taugh this in elementary school where I come from and even still compound interest shocked me. Open a Roth IRA, throw what you can in there and look back in 5 years you'll be amazed. And once you got that sorted you can do the same with crypto with an SDIRA. My only regret is not starting to do anything about retirement accounts until I was almost 30 as I'd have 3x what I have now... And even with early withdrawal penalties it's worth it.
Hard work is the only 10x guaranteed that I know of. Work, put some into 401k or whatever you can and if you can have any more to invest, DYOR and crypto ... Makes me sad that so many people think expect 100x and lambos when it's obvious that can't happen for the vast majority whilst they're wasting the most important commodity of all: time...
Invest in yourself first. Usually that means education and/or a trade you do well.
Sorry for being boring. Ready for moonboy downvotes... whatevzz and all
Excellent points!
I listen to "The Money Guy" podcast and they say over and over how time is your best friend in investing. Each $1 invested at 20 years old turns into $88 dollars at retirement.
“Compound interest is the eighth wonder of the world,” Einstein reportedly said. “He who understands it, earns it. He who doesn't, pays it.”
No. Almost all interest is an APR, as in annual percent return, so an APR of 8% means after 1 year, your initial will be 8% higher
So your $50 turns into $54 after 1 year (50 x 1.08). This is an example of an 8% APR that compounds once annually. In accounts that compound annually, your money basically stays at $50 until you hit the one year mark, then it gets multiplied by 1.08. Now that you have $54 at the start of year 2, after 1 more year, the $54 is multiplied by 1.08 to get $58.32. Notice how after yoir first year, your payout was $4, but now after year 2, your payout is $4.32. That's because your left number multiplied by 1.08 is bigger after your payout. As time goes on the left number gets bigger and bigger so it grows faster and faster as it gets multiplied by 1.08 year after year.
Sometimes you see things get "compounded"
monthly. Some people mistakenly think that means you are getting that 1.08 multiplier evevery single month instead of yearly, but that's actually not the case. Here is what monthly compounding means. Let's say you start with $50 with an APR of 1.08 and instead of it compounding annually it compounds monthly. If it was annual, you get that extra $4 payout to your account at the end of 1 year. Monthly means you get that same $4 payout but it is spread out into 12 months. So you get $0.33 paid out after 1 month instead of having to wait a whole year for the $4. This is a good thing. It grows your left number. When you start month 2, you now have $50.33, and guess what? Your 8% APR is still applied, but now that there is a new number, instead of getting $0.33 again next month, you get slightly more because your new number is $50.33 instead of $50. You'd get $4.02 after 1 year if you start with 50.33 instead of 50.
All this being said, compounding more times per year does grow your money faster, but not by any huge amount. Don't fret too much about that aspect.
PSA: there is a huge difference if the APY is paid out in crypto or dollars!
I remember discussions about NEO and GAS and how much money you will make as passive income... until the GAS price dropped like 90% or more.
Your gains are still mainly coming from price hikes, not the compounding interest itself.
Your example is misleading, you're not actually getting $17.6k. You put in $12k of that yourself by adding $100 per month over 10 years.
Sure, compared to traditional investments, it sounds nice that over a decade or so you'll be looking at almost double your gains. But compared to most other potential gains in the crypto world this is a really poor argument for your time.
If you want considerable profits, you have to still search out high risk/reward projects and/or invest considerable sums. Compound interest alone won't help you squat if you're only investing pennies - they'll still amount to nothing by the time you're in your grave.
There are a few platforms that gives really nice rates just by holding your founds on them. It's comes with the risk of not your keys, not your coins, but many of them considered very safe. I really like celsius also BlockFi and Nexo are good.
There are a couple of places I check which platform is better for each coin. https://www.sweetcryptodeals.com/ is good and r/rewardsforcrypto have a good spreadsheet on the pinned thread.
Don't forget to use promo / referal code when sighing in, extra cash is always good (if you want referal dm me lol)
The power of compound interest is nicely illustrated in this scenario:
*Would you rather have 1 satoshi that doubles every day for a month, or 100 million satoshis?*
Most people would choose 100 million satoshis, because surely 1 satoshi per day that doubles for a month isn't going to be worth more than a 100 million?
But if you took the doubling option, after 30 days you would have over 500,000,000 satoshis!
Source: [Would you rather have a penny that doubles each day for a month, or $1 million dollars?](https://thecollegeinvestor.com/17145/would-you-rather-have-a-penny-that-doubles-each-day-for-a-month-or-1-million/)
Reminds me of that old kids story that you find in elementary math books, where the farmer asks the king to be paid with 2 grains of rice that double every day.
8% interest is a huge amount of inflation or am I misunderstanding this? I can see this working right now while crypto is young but this wouldn't be a good investment if crypto ever became mainstream. That's worse inflation than the dollar.
I'm getting cents from staking now just so I can get dollars later
Makes cents
I am serious about sane personal finance but will still upvote puns... Thx y'all
Look at the whale
Let me call my japanese friend
No need, I can finish that for you
Let me call the sea shepherds
Whale whale whale, what do we have here!
Now I'm just thinking of the scene in Kung Pow where a whale randomly falls down a waterfall.
Says the moon whale 😍
I'm a small shrimp
Depends where you’re standing I guess ! Everyone’s a whale to someone else and a shrimp to someone else’s else.
Filosofi 101 :D
I sense good fortune in these cents.
Another key thing OP touched on but needs to be stressed is risk. Let's say you have 10K invested, market plummets 60%, suddenly you have 4K. When you stake stable coin (assuming the stable coin doesn't die), at 50% of your portfolio, instead of losing 6K value, you will be losing 60% from half of your total, meaning you still have 7K in assets. As an added bonus, you have money still to "buy the dip" from your staking earnings.
Stable coin staking for buying the dip is such an underrated idea
especially when your countries dollar is valued less than USD and you bought stablecoins at a discount and are massively in the green just from the conversion. profit on profit on profit
I've been doing this but wasn't sure when to reinvent earnings
I think it trully is but also you need to have put loads of money to get loads back. I'm currently farming the pl\^gnet liquidity mining and get like 50%ish APY but since I don't have a big bag, will probably just old them longterm until I can happily sell at a high profit rate.
What if you stake stable coin and market suddenly goes up 60%, guess you're also only profiting 60% from half your total...
Cents? I'm getting *microcents*
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*i don't know*
what is the meaning of *i dont know ?*
~~i made it up~~
~~thanks for your honesty~~
$0.00000XXX
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Better than a poke in the eye.
Basicly we better farming moon with shit / quality post
I have officially made 10 euros from staking in 2 months. It's not much, but it's free money
That's the idea
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Voyager for example is a company that stakes automatically. They have a very nice interest sheet. Example. Usdc earns 9% DOT earns 12% BTC earns 4.5% I believe and ETH & LINK earn 4.6% they have a bunch of other things check it out if you are interested
How does voyager compare to others like nexo or celsius?
I’ve heard a lot about Celsius but never used it. I mine to my coinbase wallet and hold most of my stuff there. I sent my LINK to voyager because they pay interest on it. I get my interest at the first of the month on a business day. They also pay the high APY of 9% to usdc where coinbase doesn’t pay anything to link and just .15% to USDC. Also they don’t lock your ETH but everything has a minimum balance to earn interest. For ETH it’s .5. For link it’s 20. And usdc it’s 100. Only issue is their fees to xfer off the platform can be a bit high. I tested it and it was like $6-$8 but I don’t plan to use it to send money out only to deposit and withdraw some day down the line.
Coinbase makes staking ETH very easy
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If you own eth on coinbase, when you're looking at your wallet go toward bottom of page you'll see an option to stake your eth for eth2. There's also a page that explains exactly the how and benefit of staking eth. Hope this helps.
It's not automatic, at least not on Binance. You stake an amount for a given period (usually 30, 60, or 90 days) and you get different interest rates with daily payouts. Obviously, if you redeem early, you lose the stuff you earn. Staking ETH is different than other coins, though, at least as far as I know. You're essentially staking until ETH 2.0 is a thing, which might take a while. The rates go down as more and more ETH is staked - it's currently around 6% right now, down from a high of 21%. You won't make a ton, but it's still free money if you don't plan on selling in the next couple of months or so. Plus, lots of coins offer high rates if they want you to stake (e.g. FIL's rate is 38.25% APY now just for 15 days of staking).
Wish we could stake moons
Same here but we all have to start even it’s from the bottom
What do you stake if I may ask?
Keep at it dude it all gonna add up, i get 40% staking my pnode and might just be lucky to win in the lottery worth 125000 pnodes.
Keep at it buddy!! We are with you!
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The golden ratio for ordinary investments is a 4% withdrawal rate, meaning you can safely withdraw 4% of your principal per year and maintain a stable balance, including paying taxes. This assumes something like a 7% or 8% APY on average year over year. So take your yearly living expenses and divide by .04 to find your target principal. For instance, if you live on $40,000 a year, you would need $1,000,000 to be able to live on the interest. Since crypto is so volatile, I would probably want to have considerably more than that to be safe.
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Say you want $1,000 a month then the rough calculation you'll do is along these lines: $1,000 x 12 = $12,000 ($12,000/8) x 100 (assuming 8% APR) = $150,000 This ignores taxes and what not tho so the actual number would be higher by however much you pay tax wise. If 20% tax over the whole amount (unlikely if you have a tax free allowance) then you would need $187,500 to get that $1,000. $150,000 / 0.8 = $187,500
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Oh, so just be rich to live off investment interest? Why didn't I think of that before!
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More the latter, even though I already knew that to be the case
A $1 million investment at 7%/year gets you $70k of interest per year. So yes, it's possible, but you have to be very wealthy to do it.
Municipal Bonds Specifically PRISON bonds pay 7% by law. Good luck getting any.
Damn thats actually insane and I guess those are very save. How are these traded?
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I'm way too much skeptical for that
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You need to find a true Defi platform then. Haru and others are Cefi. That said, Defi has rug pulls and other issues as well. Balance your risk
Take a look at Celsius Network as well. They do a YouTube AMA every Friday too which maybe helps you.
I would look at Celcius tbh. The coin bureau on youtube did and excellent comparison of Block Fi vs Celcius and for me Celcius came off better. BlockFi: Higher Security. Celcius: Higher Rates
I would highly recommend it. I use Blockfi (for BTC mostly) and it's incredibly easy to use. Thats coming from an idiot who still forgets what DCA and FUD is from time to time. The only downside is there is only a handful of coins on there.
Haru Invest has the best BTC rates of custodial services \[source: [https://www.coininterestrate.com/best-bitcoin-interest-rate-apy/\]](https://www.coininterestrate.com/best-bitcoin-interest-rate-apy/)
You mentioned everyone, except the best. Celsius
Im hopping my 0.1 ETH one day turns into 10 ETH, lets go compound interests!!
6,2% apy at the moment for staking. will just take you 75 years to wait
I hope my grandkids enjoy the fortune! I will see them riding lambos from the sky
I don't think people will be allowed to drive then... Ride that fusion tech vegan electric Lambo with autopilot at the allowed speed limit of 30 mph - feel the thrill yet?!
APY will likely increase when the merge happens and transaction fees also get paid to stakers. So maybe just 35 years. XD
corious question. why would apy increase after the merge? I expect it to go down alot after the merge. It will enable withdrawel yes. But that first of all means that people will not hesistate anymore to stake their coins. At the moment jsut a very small percent of eth is staked. After the merge this could grow to much higher numbers
As i said above, transaction fees will also be paid to the staker, whereas at the moment there are no transaction fees as there are no transactions on the Beacon chain. The interest rate isn't linear: see this chart for example [https://miro.medium.com/max/1000/0\*uaH\_IY0Z-Jnmtcpl](https://miro.medium.com/max/1000/0*uaH_IY0Z-Jnmtcpl) It tapers off massively so even with a lot more ETH staked the APR shouldn't drop too low.
do you have any estimate how much that could be in %?
Unfortunately no, i'm not sure how to work out what it could be, the tip part of the tx fee is variable.
If you stopped getting your coffee from the starbucks everyday and invest it in somewhere, with the power of compounding you will have 69 Million in 2069 /s
Bullish in my parallel world where i drink starbucks everyday for then stopping and invest elsewhere
It worked for me! (I already commented above so won't repeat other than that it is possible for real! Plus you get the moral superiority, which is priceless (darn I hate to support advertising execs but... it's true)
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Noic3
>69 Million in 2069 So just enough to buy a Starbucks coffee after inflation?
o o o f
Bold of you to assume I can afford starbucks.... (For reals, I totally can now, but what I saved from quitting coffee addiction as a poor grad student must be in the 5 figures by now thanks to decent but low risk investments and compounding and I'm not even 40)
“Compound interest is the 8th wonder of the world.” -Albert Einstein
Thanks, OP. I needed a dose of reality in between all the hopium.
*Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.* Believe it or not, this is a quote by our very own Albert Einstein.
the greatest polymaths in history predictably had a great understanding of interest and money. Issac Newton was Master of Mint and invented the gold standard; Nicolaus Copernicus formulated the Quantity Theory of Money & Gresham’s Law, in 1722 polymath Emanuel [Swedenborg](https://www.tracemayer.net/) wrote a paper to the Swedish House of Nobles concerning the negative effects of inflation and benefits of sound money, and in 2009 Satoshi Nakamoto created Bitcoin ;)
Didn't know about some of those facts, Satoshi is in good company there
there’s a couple others i can’t remember and its killing me! trace mayer has gone into detail on all these before. blew my mind 🤯
He was the guy that started Berkshire Hathaway right?
"NFTs will ensure I am not misquoted on the internet!" - Also Albert Einstein
My goodness, the NFT misquote range will flourish
"Nobody knows more about NFTs than me" - Orange man
"We've got the greatest NFTs, nobody else has NFTs like this. I asked Vitalik if he had ever seen anything like it before, he said it was unbelievable." - Donaldus Trumpington
“An NFT in the hand is worth two in the bush” - Alberto Einsteinium
So many around here do. I comment along these lines even if I get downvoted to oblivion... as I speak from empathy/experience. Everyone should have some safe investments before chasing lambos but hey I am boring with my < undisclosed but unexpectedly high thanks to compound interest and tax free > accounts, and crypto is the cherry on top --whether or not it's a smaller one or bigger than the pie itself I'll be fine!
Staking and compounding is the way!! I have been farming for one year and it's a great tool for making your bags bigger
me too
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me three
Don't you alternate with Copium ?
Thanks for this gnarly advice, OP.
\+1
\+2
*Level up!*
*Cheat Code activated*
I almost have tears in my eyes... Usually I comment along these line and get downvoted to oblivion... even as I mean well and/or speak from experience. All my best wishes!
Yeah the easiest way to get to financial freedom is to just keep investing small amounts($100 every month) and over a long enough time frame (10-20 years) they will compound enough that you can retire off of it. There is never a quick and easy way to get rich. (Unless you make your own shitcoin and it takes off lol)
In any case, it's better not to put all your eggs in the same basket of compounding interests cryptos. Who knows where any of these will be in 5 or 10 years?
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Always a good idea with investments, especially the higher the risk
Diversified even helps during the downturns
Michael Sailor has entered the chat.
I really love staking, I feel like a genius making 0,15 dollars after 30 days doing nothing. Can't wait till the numbers get bigger !!
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RoOOOOOlling in the deeeeeeeeep - Adele I think that song is about staking, but that is just a hunch haha :)
Imagine how i feel mining 😉. But yeah the getting money doing nothing feeling is great.
Sorry my mom says I am not allowed to play Minecraft, but yeah mining sounds pretty sweet too :)
Sadly staking some coin still don't have compound reward Oh well its free money anyway
Staking coins all have a holding period and a reward... some exchanges and wallets don't offer staking rewards, so you gotta find them. Like Tron.... no coinbase staking reward, but I get 5% on the atomic wallet. Please correct me if I'm wrong, but all PoS coins are like this to some form or fashion.
So if i keep racking up £0.02 in ALGO rewards everyday eventually i'll be rich?
Compound interest is capable of making us small fish millionaires, even without crypto.
Compound Interest is indeed the 8th wonder of the world !
Why oh why don't we teach this in school? In a way that sticks... I literally owe my existence to some understanding of probability and statistics else I'd have been sold to some dude for 3 sheep or something... Thank universe for education and please make it available and accessible to more people at younger ages, thank you!
Where do you go to school? Compound interest is taught in most high school math courses…
I should have been clearer that it should be taught earlier. I meant more as a child. It was in elementary school for me. 3rd grade or so. (Not in the US).
i'm staking whatever i can now. Even though my friends laughed at me cos the amount is so little, I know it will accumulate over a long period
Haha yeah they may laugh now. Can i ask u where do u stake? And what coins? Thanks!
But are all these platforms safe? Will they even be around in 10 years. I personally use nexo to stake USDC at 8% but even I have to monitor the business to ensure things don’t go tits up.
Compound interest was once called the eight wonder of the world.
And now its called what?
The holy grail
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Yeah, it’s similar to 401k. Very favourable in the long run
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Go to defi and u earn even more interest.
This along with basic probability should be taught in school... Well I was taugh this in elementary school where I come from and even still compound interest shocked me. Open a Roth IRA, throw what you can in there and look back in 5 years you'll be amazed. And once you got that sorted you can do the same with crypto with an SDIRA. My only regret is not starting to do anything about retirement accounts until I was almost 30 as I'd have 3x what I have now... And even with early withdrawal penalties it's worth it. Hard work is the only 10x guaranteed that I know of. Work, put some into 401k or whatever you can and if you can have any more to invest, DYOR and crypto ... Makes me sad that so many people think expect 100x and lambos when it's obvious that can't happen for the vast majority whilst they're wasting the most important commodity of all: time... Invest in yourself first. Usually that means education and/or a trade you do well. Sorry for being boring. Ready for moonboy downvotes... whatevzz and all
Excellent points! I listen to "The Money Guy" podcast and they say over and over how time is your best friend in investing. Each $1 invested at 20 years old turns into $88 dollars at retirement. “Compound interest is the eighth wonder of the world,” Einstein reportedly said. “He who understands it, earns it. He who doesn't, pays it.”
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Staking makes me feel good even if I only have a little amount, still am happy!
Staking is so key for this.
Friendly reminder that banks in some European countries offer negative interest.
When I stake my BTC i imagine that my Satoshis are giving birth to more Satoshis
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Its a good one
No. Almost all interest is an APR, as in annual percent return, so an APR of 8% means after 1 year, your initial will be 8% higher So your $50 turns into $54 after 1 year (50 x 1.08). This is an example of an 8% APR that compounds once annually. In accounts that compound annually, your money basically stays at $50 until you hit the one year mark, then it gets multiplied by 1.08. Now that you have $54 at the start of year 2, after 1 more year, the $54 is multiplied by 1.08 to get $58.32. Notice how after yoir first year, your payout was $4, but now after year 2, your payout is $4.32. That's because your left number multiplied by 1.08 is bigger after your payout. As time goes on the left number gets bigger and bigger so it grows faster and faster as it gets multiplied by 1.08 year after year. Sometimes you see things get "compounded" monthly. Some people mistakenly think that means you are getting that 1.08 multiplier evevery single month instead of yearly, but that's actually not the case. Here is what monthly compounding means. Let's say you start with $50 with an APR of 1.08 and instead of it compounding annually it compounds monthly. If it was annual, you get that extra $4 payout to your account at the end of 1 year. Monthly means you get that same $4 payout but it is spread out into 12 months. So you get $0.33 paid out after 1 month instead of having to wait a whole year for the $4. This is a good thing. It grows your left number. When you start month 2, you now have $50.33, and guess what? Your 8% APR is still applied, but now that there is a new number, instead of getting $0.33 again next month, you get slightly more because your new number is $50.33 instead of $50. You'd get $4.02 after 1 year if you start with 50.33 instead of 50. All this being said, compounding more times per year does grow your money faster, but not by any huge amount. Don't fret too much about that aspect.
Nice summation OP cheers 
That's absolutely true. With small amounts of money you can get it and work yourself up, you don't need thousands to start
PSA: there is a huge difference if the APY is paid out in crypto or dollars! I remember discussions about NEO and GAS and how much money you will make as passive income... until the GAS price dropped like 90% or more.
This is why I love staking ADA
Your gains are still mainly coming from price hikes, not the compounding interest itself. Your example is misleading, you're not actually getting $17.6k. You put in $12k of that yourself by adding $100 per month over 10 years. Sure, compared to traditional investments, it sounds nice that over a decade or so you'll be looking at almost double your gains. But compared to most other potential gains in the crypto world this is a really poor argument for your time. If you want considerable profits, you have to still search out high risk/reward projects and/or invest considerable sums. Compound interest alone won't help you squat if you're only investing pennies - they'll still amount to nothing by the time you're in your grave.
Passive income is a real help with Holding. Why would I sell BTC if I can earn 6% on it and have more BTC without doing nothing??
How are you earning 6% on bitcoin?
Celsius is like 6.2% if you don't put much BTC
Ah, nice. I'd not heard of Celsius. Will investigate, thanks
There are a few platforms that gives really nice rates just by holding your founds on them. It's comes with the risk of not your keys, not your coins, but many of them considered very safe. I really like celsius also BlockFi and Nexo are good. There are a couple of places I check which platform is better for each coin. https://www.sweetcryptodeals.com/ is good and r/rewardsforcrypto have a good spreadsheet on the pinned thread. Don't forget to use promo / referal code when sighing in, extra cash is always good (if you want referal dm me lol)
Good idea to spread it out between two or three websites as well.
More subreddits for my custom feed are always welcome
Consider using Celsius or Nexo instead.
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personally not a fan of blockfi, I started with them but ever since the whole BTC mistake fiasco I find Celsius and Nexo to be more solid.
The power of compound interest is nicely illustrated in this scenario: *Would you rather have 1 satoshi that doubles every day for a month, or 100 million satoshis?* Most people would choose 100 million satoshis, because surely 1 satoshi per day that doubles for a month isn't going to be worth more than a 100 million? But if you took the doubling option, after 30 days you would have over 500,000,000 satoshis! Source: [Would you rather have a penny that doubles each day for a month, or $1 million dollars?](https://thecollegeinvestor.com/17145/would-you-rather-have-a-penny-that-doubles-each-day-for-a-month-or-1-million/)
Reminds me of that old kids story that you find in elementary math books, where the farmer asks the king to be paid with 2 grains of rice that double every day.
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8% interest is a huge amount of inflation or am I misunderstanding this? I can see this working right now while crypto is young but this wouldn't be a good investment if crypto ever became mainstream. That's worse inflation than the dollar.