The Power of Compound Return

in investment •  3 years ago 

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Ever heard of the compound return? If you are involved in the investment world, you certainly understand exactly what compound return is, and its great strength. In short, compound return is when our investment returns are regularly reinvested so that it produces even greater returns.

Like a snowball rolling down a hill, compound return accumulates the value of our investment little by little, but in the long run the amount becomes enormous.

The image above is the perfect illustration to explain the power of compound return. With a starting point of 1 (100 percent), if we add 0.01 (1 percent) every day then in a year the value becomes 37.78. That is, with an investment of $1,000, if you are able to generate 1 percent profit every day, in a year the investment value will be $37,780. On the other hand, if you lose 1 percent every day, in a year the investment value will shrink to $30.

In the crypto world, there are many ways to generate 1 percent profit every day, so if you use it properly and implement strict investment discipline, it is very likely that your crypto assets will become very large in the next 5-10 years. Discipline is the key, there are no shortcuts to success.

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