If from cryptography to decentralized finance, the crypto industry is fond of exotic, innovative and often unprecedented concepts, one will agree that there is never any point in reinventing the investment wheel. As such, the notion of “compound interest”, the power of which has been known for a long time, is one of the most powerful tools available for anyone wishing to grow their capital in a simple and efficient manner.
And whether we are talking about the stock market, the traditional savings market or crypto-assets, compound interest will apply with the same rules and with identical efficiency. In fine, it is your assets that will grow, without forcing you to incessant (and most often counter-productive) arbitration.
Today, the company specializing in the mining of Bitcoin and other crypto currencies Feel Mining is putting in place the device that will allow its community to benefit from the power of compound interest: automatic re-investment. We tell you everything in the chapter of the day of the Tribune du Minage.
Warning : This sponsored article is offered to you in partnership with the company Feel Mining. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.
And to be profitable even faster, take advantage of 5% on all Feel Mining services (including machines!) With the code TCT (Excluding exceptional and staking offers).
Compound Interest: definition
A tenacious legend would like than Einstein, a somewhat famous 20th-century physicist, said of compound interest that it “Were one of the most powerful forces in the Universe”.
If the veracity of the quote is doubtful (Albert, as brilliant as he was having other fish to fry and the curvature of space-time to explain), the quote is no less striking and sums up a good principle. established from now on: the mechanics of compound interest are unparalleled in their power when the best means of make a heritage grow, whatever its nature.
The essence of the process is astoundingly simple: it consists of systematically re-invest the interest generated by the investment in the starting capital. This capital grows, and automatically generates more substantial interests, themselves reinvested again, etc.
The whole thus nourishes a virtuous loop, the effects of which will be maximized by leverage as time passes. We will retain 2 main lessons:
- The mechanics perfectly illustrate the principle according to which “Small streams make great rivers”,
- the device excludes the human factor from the equation. Just like the Dollar Cost Average (the fact of investing an amount X at regular intervals, whatever the state of the market), setting up a compound interest re-investment loop avoids all of the tactical errors that the psychology specific to the investment makes 95% of trainee traders commit.
Caution : at this stage, it is advisable to underline a simple principle, but essential in order to invest serenely in the crypto field: not to polarize on the value of a currency in fiat money (dollar or euro) at a moment T. Indeed the values cryptos experience large variations in price, both upward and downward.
We will therefore now use the NRG token a lot to illustrate the principle of compound interest. But 1000 euros of NRG currency invested today could perfectly equal 1100 tomorrow and 850 the day after. What matters in the demonstration is to see to what extent the number of your NRG tokens will increase thanks to the device (and if at the same time the price of the NRG increases, you will win on all counts, if it decreases, the dividends recovered will offset all or part of your losses).
In our example, we will take into account the performance of the Energi masternodes, whose dividends currently stand at around 45% (source: Masternode Online).
Now imagine investing in the purchase of an Energi full masternode, i.e. 1000 NRG tokens, today (for an indicative amount of 1399 euros). You decide to set up an automatic reinvestment system via the Feel Mining site, so as to automatically replace your dividends in the initial collateral. Over 3 years, the device will generate the following effects:
In 3 years, in October 2023, your capital will thus have increased from 1,000 to 3,048 NRG, i.e. a growth of 300%. What we will particularly remember in the demonstration – in addition to the consequent gains it generates – the process does not require any arbitration and excludes visual navigation: once set up, the compound interest system produces its effects indefinitely. We also lend to the legend of investing Warren Buffett the following quote:
“My wealth comes mainly from the combination of three things: living in America, good genetics and compound interest “
The great qualities of compound interest have thus been well known for a long time in the world of traditional investment where their effectiveness no longer needs to be demonstrated. However, the process is not yet widespread in crypto investing. A lack in the process of being filled since for a few days, the French of Feel Mining offer their customers the benefit of all the power of the device in just a few clicks!
How to set up automatic Masternode reinvestment with Feel Mining?
Let’s continue with the following concrete example: you are the lucky owner of a masternode (or part of a Masternode) NRG. If you do not yet know the Energi project and its NRG token, this introductory article is just waiting for your kind visit.
Since your initial investment, your NRG collateral will fill you with dividends paid daily, the latter increasing your capital in NRG, so that you can control it at any time.
As you probably know – or deducted – the dividends generated by the masternodes subscribed via Feel Mining are withdrawable at any time (if you want to repatriate them to a personal wallet) or convertible at your leisure and at any time in Bitcoin, Ethereum or many other cryptocurrencies, including VeraOne (VRO). Speaking of VRO, did you know that investing in Feel Mining could earn you cash back…. In gold?
Regulars will immediately notice, these functions have recently been accompanied by a new tool called “Automatism“. And beneath its discreet surroundings, it is this new feature that can make all the difference and radically boost your initial investment!
By going to explore this function, 2 choices are available to you: that of setting up a automatic withdrawal rule (which will allow you to trigger a transfer once a certain dividend threshold is reached, a long-standing feature) and our topic of the day: automatic re-investment.
Bravely clicking on this little novelty will bring you to the following window:
A progress gauge allows you to clearly visualize the number of tokens that you will still need to accumulate in order to unlock the possibility of automatic reinvestment. In the example above, the operation will be accessible as soon as approximately 37 additional NRG tokens have been generated by the Masternode. In this case, with an estimated dividend of around 2.35 NRG / day (for collateral of 1400 NRG), this deadline will be reached in 16 days on our example.
Automatic reinvestment is possible on the Energi masternode from 106.55 NRG. Things being done right, this is precisely the entry ticket to subscribe to a share of Energi Shared Masternode including the commissioning fee.
What about staking?
Feel Mining doesn’t just offer goods and services related to Bitcoin mining and Masternodes. The Grenoble-based company also excels in staking and offers several of the most emblematic projects in the industry such as COSMOS, Algorand, AVAX or Tezos…
If the product differs, the possibility of automatic reinvestment is also implemented in Feel Mining’s staking services. Illustration with COSMOS is his token ATOM (a Decentralized Finance project that you can find out more about here):
The path is similar to that presented for the NRG masternode. Good surprise: in this illustration, the threshold allowing automatic re-investment has been reached (21 ATOM).
The operations are perfectly explicit: once your Feel Mining password has been entered, a box must be ticked, attesting that you have fully understood that your dividends will be used for establish a new staking contract.
New mentions appear on your dashboard, attesting to the ongoing creation of a new contract and the validation of the automatic reinvestment. In addition, an email is sent to you for your archives.
And to be profitable even faster, take advantage of 5% on all Feel Mining services (including machines!) With the TCT code (Excluding exceptional offers and staking).
Unless you are an expert, professional in the trading and investment sector or aspire to become one, remember a central notion: simple solutions are often the most effective! As such, do not miss the power and ease of automatic reinvestment, including in your crypto investments.
In the previous episodes of the Tribune du Minage:
Nice to meet you, I’m Hellmouth! Editor-in-chief of Cryptocurrencies, the crypto medium that you do me the honor to survey right now (well done, you have taste).
Crypto-enthusiast of the second hour, nothing is more important to me than to support the global adoption and democratization of the treasures offered by blockchain.
I write articles in between cocktails in Tahiti, my adopted island, and don’t mind, if the opportunity arises, to feast on a plump scam or an overly enterprising Ponzi scheme.
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