How terrifying is the power of compound interest? 1000U turns into 100,000 in two months!
Everyone knows the horror of 'usury', right?
Why can a small loan lead to someone losing everything?
The answer is just two words: compound interest.
Now let's think in reverse, what if we apply the 'compound interest' model to cryptocurrency contract trading, what would happen?
First, let’s look at the strategy:
Only trade mainstream coins, BTC / ETH.
Only use low leverage, within 10 times.
Enter the market with light positions and strictly enforce take-profit and stop-loss.
The daily goal is to earn only 10% of the principal.
Doesn’t it sound a bit 'conservative'? But don’t underestimate this 10%.
If you operate properly, with just a 1% increase in BTC, ten times leverage can yield a 10% profit.
In the crypto world, such market conditions are common.
A 1% fluctuation in a day? Just a small drop in the bucket.
Let’s continue calculating:
We all learned the compound interest formula:
Daily principal × 1.1, rolling continuously.
So how much is 1000U earning 10% daily, compounded over 50 days?
The answer is: 100,000 U.
We’re not exaggerating or downplaying, let’s do some math:
log1.1(100) ≈ 50
This means, if you just win for 50 consecutive days, 1000U can turn into 100,000!
You might think: “Isn’t that unrealistic, earning every day?”
But pay attention, I said the average goal is 10% per day, not that you earn 10% every day.
Sometimes you earn 20%, sometimes you don’t move, sometimes you have a small loss, just make up for it later.
Those who can truly turn their fortunes around in the crypto space are not gamblers, but those who understand compound interest and discipline.
Earning just 10% a day, turning it into a hundred times in 60 days sounds crazy, but it’s actually very mathematical.
The hardest part is execution. The most beautiful part is the process.