Staking And Compounding Those Rewards

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The above diagram is an example of what happens to $1000 over a period of 20 years. At first you see the growth as very small, but the longer you leave it the quicker the speed and growth happens more so in the latter years. Why anyone would invest into a crypto project and not stake their investment I find bewildering because whilst you are waiting for price action you could be earning. Having a time frame of 4 years in crypto for 1 complete cycle creates a perfect opportunity to grow and accumulate that investment. Not only is this a fun way to grow, but it teaches you to stick to a simple plan that genuinely works.

How to accumulate and grow ones bags is a skill we all need to know and understand fully. Growing your token numbers in crypto could not be any easier and all it takes is a little understanding of how the process works. Once you see this play out in real time then you will be hooked and will not look back. All this really takes is patience and ignoring FOMO which is normally too late anyway once you hear about things.

First of all you have to find a crypto that you can stake that allows you to earn rewards continuously 24 hours per day. HIVE is an example of this but actually is more complicated as the rewards come from so many different areas, but the same techniques would apply.

Today I was collecting my rewards or farming as we like to call this and this has helped me stay at a constant even with a slowly falling APR. If the APR remained constant the rewards would slowly increase over time and I expect at some point this will bounce back or at least stabilize then the growth will be highlighted even more.

Let me show you what I mean by using my COTI stake as a good live example because it is truly magical once you understand how the growth happens. The compounding effect is the key here to unlocking many more daily rewards on top of your current rewards. Time is the secret ingredient and one must not be in a rush and expect to see riches over night.

Currently my stake of nearly 200K COTI generates 78 COTI rewards daily which is growing every day at an APR of 6.16% which is the base rate. The rewards when staked are worth an extra 4.8 COTI annually and sounds like nothing major. This when staked is worth 0.013 COTI so done daily this grows your daily rewards. This is where the growth happens because over a 12 month period the rewards have generated an extra 5 COTI daily so instead of earning 78 rewards daily now you have 83 being earned daily.

In year two that daily reward would be worth 88 Tokens being earned daily and after 4 years you would be earning 100 tokens daily which is a large increase from 78 and represents an extra 28% daily growth. This for me is a strategy to build value during a crypto cycle without having to worry about price and focusses you in the right areas that matter being accumulation.

Things like the APR staying constant is not a variable you can control and all you can do is stick to growing no matter what the APR is being offered. Growth happens automatically and the longer you stick at this the quicker you will grow over time.

Crypto is not a get rich quick scheme and is actually quite the opposite, but there is one way of guaranteeing your growth and success by sticking with a project if you have selected the investment wisely. There are so many unknowns with crypto as this tech is so new and all we know is this is going to be the future so therefore it should be far bigger worth far more when true adoption takes place.

Over the last 4 years of this current crypto cycle I have been experimenting to see how much growth is possible through investing and staking and the speed of growth has been impressive to witness. If you have lost money in crypto and are down on your investment then you are definitely doing something wrong and staking is a way of changing that outcome. Trading is not for everyone and by staking you are eliminating the temptation and risk of trading.

Posted Using INLEO