What is **Compounding of Coins?

Compounding = earning rewards → and reinvesting them → so your stack grows automatically.

In crypto:

- You stake, farm, or hold coins.

- You earn rewards (like interest, or free coins).

- Instead of taking profit out, you add rewards back to your holding.

- Now next time, you earn rewards on bigger amount.

Over time, your small amount grows into a much bigger amount without adding extra money

Suppose:

- You buy $1000 worth of a coin.

- You stake it and earn 10% reward per year.

Case 1 No

- After 1 year = You get $100 reward.

- Total = $1100.

Case 2 With

- You reinvest your $100 reward into staking immediately.

- Now you have $1100 staking for next year.

- Next year, 10% on $1100 = $110 reward (not $100).

- Next year you have $1210.

- Every year your earning becomes bigger and bigger automatically.

Small difference early → HUGE difference after 1–2 years!

In Crypto, Compounding Happens With:

| Type | Example |

| Staking | Staking coins like ETH, SOL, ADA, ATOM, etc. |

| Liquidity Farming | Providing liquidity on DEX like PancakeSwap, Uniswap. |

| Reward Programs| Projects giving airdrops, bonuses if you hold longer. |

| Auto-Staking Platforms| Some apps automatically restake your rewards (example: Lido for ETH, OKX Earn). |

Why Compounding is OP

> "The greatest force in the universe is compounding." — Albert Einstein (

In crypto:

- Early stakers become millionaires quietly just by compounding.

- No trading stress, no gambling.

- Just slowly growing stack while sleeping!

Suppose you bought:

- 500 in ATOM coin. $ATOM

- You stake it at 15% APR(yearly).

- Every month, you re-stake rewards.

After 2 years, without adding extra money,

your $500 can grow UPTO $670 even if coin price doesn't move.