🤔 What is compound interest in cryptocurrency ?
👉Compound interest in cryptocurrency is a concept related to investing in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. Compound interest in cryptocurrency means you use the profits you make from buying and selling cryptocurrencies to reinvest in other transactions. Thus, you can increase the amount of your cryptocurrency and get higher profits in the future.
Compound interest in cryptocurrencies can be calculated according to the following formula:
A=Px(1+r) ^n
In there:
+ A is the amount of cryptocurrency you receive after n investment cycles.
+ P is the amount of cryptocurrency you initially invested.
+ r is the average interest rate per investment cycle.
+ n is the number of investment cycles.
For example: You have 1 Bitcoin (BTC) and you invest in cryptocurrency exchanges with an average interest rate of 10% per month. After 6 months, the amount of BTC you receive will be
A=1x(1+0.1) ^6
A=1.77
