Every investor wish to invest in some projects which has the potential to grow over time. The best way is to choose the best strong tokens that have a strong future and that can give you wealth after long period. Right now, I am investing in 4 tokens such as #colony #Script #Hive #Leo. I am looking to apply compounding formula from now on which helps me grow my investment much faster.
These 4 tokens have a good future and are fundamentally strong. Also I am already involved in these 4 tokens in investment so why not make this investment even stronger using compounding. I will add fix amount on weekly or monthly basis and also will add the APR profit in my investment for atleast 10 years of period.
Liquidity Pool Compounding Strategy
Whether it is in the liquidity pool or ingame staking this formula works in both places. You simply have to invest a small amount every month for example $20 in these tokens and the APR profit you get will also be added back. Believe me after 10 years your capital will become 3 to 4 times and this is the power of compounding.
Long term investment should always be in projects that have a bright future which mean the tokens which have the potential to increase in price. If passive income also comes along then this investment becomes successful. Every investor has his own choice but in my view Colony, Script, Leo, and Hive are the best choices.
If I keep investing in these tokens for 10 years then without doubt my wealth will be created.
What happens in investment? You select a project where you want to invest. When you find a good project that convinces you that your money will not be wasted in the long term then start investing in that type of project.
Many people are confused about the term "investment". They think that whether it is long term or short term both are investments. But I do not agree with this. An investment should run for at least 5 years. In simple words longterm planning which at least lasts 5 years is knwn as investment.
What is compounding? Compounding means continuing your investment adding some amount every month from your pocket and also adding the APR profit back into it.
This is not for short term, compounding only benefits in the long term.
My investment is already going in Colony and Script so the smart decision is to continue in the same. I will try to add a fixed amount every month or every week and I will also add the APR profit. My plan is long term. I have been investing for 2 months now and I didn’t even feel how it passes. The next 10 years will also pass like this.
Surely, 10 years is long term and by that time I will have a lot of Colony and Script tokens. Because compounding is happening I expect that after 10 years my wealth will become 4-5 times and if token price also increases then that will be extra profit. This is sure that Hive tokens grow with time so their growth will also continue.
Now lets take an example:
I will invest 800 Colony every month.
APR = 24% yearly
Time = 10 years
After 10 years with compounding, how many tokens will I get?
| Year | Total Tokens Contributed | Tokens After Compounding | Value @ $0.0001018 |
|---|---|---|---|
| 1 | 9,600 | ≈ 10,730 | ≈ $1.09 |
| 2 | 19,200 | ≈ 24,337 | ≈ $2.48 |
| 3 | 28,800 | ≈ 41,595 | ≈ $4.23 |
| 4 | 38,400 | ≈ 63,483 | ≈ $6.46 |
| 5 | 48,000 | ≈ 91,241 | ≈ $9.29 |
| 6 | 57,600 | ≈ 126,446 | ≈ $12.87 |
| 7 | 67,200 | ≈ 171,093 | ≈ $17.42 |
| 8 | 76,800 | ≈ 227,717 | ≈ $23.20 |
| 9 | 86,400 | ≈ 299,530 | ≈ $30.49 |
| 10 | 96,000 | ≈ 390,607 | ≈ $39.76 |
This table shows if Colony price does not increase.
Now look at the second table for price increase:
| Future Price | Value of 390,607 Colony |
|---|---|
| $0.001 | ≈ $390 |
| $0.005 | ≈ $1,953 |
| $0.01 | ≈ $3,906 |
| $0.05 | ≈ $19,530 |
| $0.10 | ≈ $39,060 |
Meaning if the price becomes $0.10 after 10 years (which is possible) then my small investment will give me $39,000 which is very huge amount.
This is called consistent investment plus compounding formula. This is best for every age but especially for young people who can start planning for their future and retirement at early age.
Do you also have interest in compound investmen? What are your favorite tokens you are investing? Share you view in the comment section
I hope you find this post useful and informative. If you do, please remember to reblog it so that it reaches as many people as possible and that they can benefit the most from it. Also, remember to upvote, which will help me financially and grow my account.
IMAGE TAKEN FROM CANVA Tribaldex
NOTE : Investment table is made using ChatGPT...
Thank You!
Best Wishes.