Does a 1% daily gain add up to 10% over ten days?
Many people estimate returns in their heads: 1% a day, so 10% in ten days. Sounds reasonable, but that’s not how the math works.
Example: Start with 10,000U. Each day’s gain or loss is calculated based on the balance at the end of the previous day.
① Up 1% every day for 10 days: You end up with about 11,046.22U, a gain of about 10.46%—slightly more than 10%. That’s because each day’s 1% is calculated on a balance that has already grown.
② Down 1% every day for 10 days: You end up with about 9,043.82U, a loss of about 9.56%, not 10%.
③ Up 1% one day and down 1% the next, alternating for 10 days: You end up with about 9,995.00U. The number of gains and losses is the same, and their size is the same, yet the result is still a small loss.
For a more extreme example: Gain 10%, then lose 10%, and 10,000U becomes 9,900U.
The mistake: Treating percentages as numbers you can simply add together. Percentages are calculated based on the balance at that point in time, and that base keeps changing.
The right way: To calculate returns over multiple days, use “ending balance ÷ starting balance - 1,” or multiply together each day’s (1 + gain/loss rate). When you see claims like “a steady 1% every day,” multiply it out yourself first, then ask yourself what makes it possible for that rate to stay steady every day.
These are all hypothetical figures, intended only to explain the calculation—not to suggest how any coin will perform.
#复利 #收益计算 #Must-Read for Beginners
Many people estimate returns in their heads: 1% a day, so 10% in ten days. Sounds reasonable, but that’s not how the math works.
Example: Start with 10,000U. Each day’s gain or loss is calculated based on the balance at the end of the previous day.
① Up 1% every day for 10 days: You end up with about 11,046.22U, a gain of about 10.46%—slightly more than 10%. That’s because each day’s 1% is calculated on a balance that has already grown.
② Down 1% every day for 10 days: You end up with about 9,043.82U, a loss of about 9.56%, not 10%.
③ Up 1% one day and down 1% the next, alternating for 10 days: You end up with about 9,995.00U. The number of gains and losses is the same, and their size is the same, yet the result is still a small loss.
For a more extreme example: Gain 10%, then lose 10%, and 10,000U becomes 9,900U.
The mistake: Treating percentages as numbers you can simply add together. Percentages are calculated based on the balance at that point in time, and that base keeps changing.
The right way: To calculate returns over multiple days, use “ending balance ÷ starting balance - 1,” or multiply together each day’s (1 + gain/loss rate). When you see claims like “a steady 1% every day,” multiply it out yourself first, then ask yourself what makes it possible for that rate to stay steady every day.
These are all hypothetical figures, intended only to explain the calculation—not to suggest how any coin will perform.
#复利 #收益计算 #Must-Read for Beginners
