Compound Interest on #Binance
Reinvest Your Earnings to Grow Your Capital
Compound interest on Binance is the process of reinvesting the earnings generated by your cryptocurrencies so that, in turn, they generate more earnings. This accelerates the growth of your assets over time.
The easiest way to achieve this is through Binance Earn options, such as "Simple Earn" (flexible or locked) and "Staking". Once your cryptocurrencies are deposited in these products, they generate returns.
To apply compound interest, you have two main options:
* Manual Reinvestment: When you receive your interest (which can be daily or periodic), instead of withdrawing it, you add it back to your initial investment in the same Earn product (Simple Earn, Staking) or even in a liquidity pool if you understand the associated risks. This increases the capital on which future earnings are calculated.
* Auto-Subscription: For some features, Binance offers the Auto-Subscription option, which automates the reinvestment of your returns, making the process even easier.
By reinvesting your earnings, your initial capital grows steadily, resulting in faster growth of your assets.