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Math is fun.

If you a geek like me then maybe numbers are something that interests you. I'm sure you have seen everyone talk about compound interest and how it is one of the smarter ways to invest as you are getting more and more each time that you compound your money. In the world outside of crypto daily compounding was unheard of. There are stocks that pay quarterly dividends so we are spoiled here when we get paid ours everyday. When you are getting paid everyday you can reinvest every day and your stack will grow at a rate faster than if you got paid every couple of months.

But how much?

Well it is easy to calculate.

There are sites for daily interest calculating where you can put in your numbers and it will give your results for the time that you selected. When you do it for a year it isn't that much (still good with a high APR like Leo) but over years it can really sky rocket and lead to an early retirement.

Let's do an example.

Let's say I invest 5000 USD in a stock that pays daily dividends in USD. The type of currency does not matter it can be ethereum or Bitcoin but lets use the American dollar for this example. For our APR we will use 50%. This is a very high number but it is possible in the world of crypto and Leo gives a good 30% no problem.

If I don't have compound interest this is what happens. On day one you will have $5,000. If I have a return of 50% then I should have $7,500 by the end of the year and made $2,500 in profit. Not bad for letting it sit there.

But lets say we got paid our dividends everyday and reinvested.

One day one you will have $5,000. Every day from there you will use your USD returns to buy more of the stock and your interest will increase as your number goes up. By the end of the year you will be sitting on 8,240.79 worth of USD. That is an increase of $740.79 compared to getting your dividends once per year even though the rate is the same.

This works no matter how big or small the investment. A 14 percent increase is a big number when it comes to returns and one a site that is paying a decent APR you will really see gains when you compound over time. 

Daily interest is how I invest in cryptocurrency for the most part. I do have to say please do your own research before you invest in anything and as always only invest in what you can afford to lose. Crypotcurrency has some good APR products but they are high risk so keep that in mind as you can lose all your money.

But if you are in crypto and are only using money you can afford to lose then I recommend that you keep compounding in sites and coins you think will do well for the months and years to come and see how fast it can grow. It has gotten me through the bear market and it can pay off well in a bull run.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/hive-167922/@whatageek/did-you-know-that-daily-compound-interest-can-add-14-82-to-your-apr-returns)