Compound interest is "the eight wonder of the world," some attribute this quote to Einstein.

Compound interest is also the reason Warren Buffett is so rich.

The whole idea behind compound interest is that time is money, literally. In that, $100 today is always better than $100 tomorrow.

A, because $100 today means you can spend it today, whereas if it's tomorrow you have to wait. And B, of course, inflation.

Compound interest is based on the idea to reinvest interest to generate further interest.

In crypto, a good example of how use compound interest comes from Binance or perhaps Trust Wallet's Atom staking programme.

At the time of writing, Trust offers up to 14.1% interest on Atom.

Say you invest $1,000 worth of Atom today. Interests are actually paid daily but let's say, for the sake of this explanation, that you get your interest a year from now.

In a year, you'll have earnt $141.

You can either withdraw $141 by claiming rewards, or compound it by adding it to the pot of Atom you're staking.

Both are good ideas but, on a personal note, I occasionally like to withdraw funds and spend them. Live a little.