Welcome, in this article we will explain what a crypto compound saving interest account is.
In addition we will discuss why it´s so important to achieve the interest on interest effect on a long-term perspective.
If you are interested in receiving the best interest on your crypto holdings, you should check out our article about crypto passive income.
What is a Crypto Compound Interest saving account?
A crypto compound interest saving account is where you earn interest on both your initial investment and your accrued interest.
Let´s illustrate with a few examples. We have summarized all the data in a table and a diagram with explanations.
Conclusion: Compound doesn´t seem to have too much of impact in the end result if you are investing for a short term period and the difference in interest is small. Compare row 1 and 2 or staple 1 and 2.
However, if you invest for a long term perspective and the basic interest also differs it can have a huge impact. Compare row 11 and 12 or staple 11 and 12.
In the table above you can see how much impact compound has VS no compound over 10, 20 or 30 years and with 5-10% interest. As you can see, there is large impact if you have an interest account with 10% yield over 30 years.
In the diagram above there are 12 staples. All the green staples represents interest saving accounts without compound while blur corresponds to interest accounts with compound. You can see all the data in the table above.
Where to get crypto compound interest?
As described above, over time and for long-term deposits, it´s important to get compound on your crypto savings account.
So, where to get crypto compound interest?
In the table below, you can see the frequency of the payouts. Remember, the interest rate is more important than the payout frequency.
Remember risks with investments with crypto
In the end, risks are the most important factor to handle when it comes to investment, in particular with crypto.
Do not stare blindly on the interest rates and if compound is accessible or not.
Always ask yourself the question if the service you are about to use are secure and have a history.