Compound interests and why I am starting using a timer

By julien | From 0 to 1 Bitcoin challenge | 16 Jul 2019

I love compound interest !

I really love it.

Why ?

Because it's at the same time very powerfull and very boring. So this is a field that generaly does not interest a lot of people, which means that there is generaly an opportunity. And today this opportunity is sizable in the crypto field.

First what are compound interest ?

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Compound interest is standard in finance and economics.

Compound interest is contrasted with simple interest, where previously accumulated interest is not added to the principal amount of the current period, so there is no compounding. Source : https://en.wikipedia.org/wiki/Compound_interest

So the higher but also the more frequent the interest, the better !

Let's do some maths

I am going to compare 3 investments :

- 1% per day;

- 2 % per day ;

- 3 % per day.

Not much of a difference. I mean, it's at the same time small (only a few % each so nothing compared to some altcoin daily performance during the next altcoin bullmarket everybody is talking about , but hey still , 1% or 2% daily is very good compared to other assets!).

Let see the difference if I invest 1 $, after 100 days :

My 1 $ will be tranformed in 3 $ with 1% daily interest (very good x3 in 100 days), 7 $ with 2% daily interest (excellent x7 in 100 days) and 19 $ with the 3% daily interest !

Powerfull no?

But wait to see the results afte 1 year. I had to check twice my calculations !

My 1 $ will be tranformed in :

- 38 $ with 1% daily interest (very good x38 in 1 year),

- 1377 $ with 2% daily interest (excellent x1377 in 1 year)

and ....

...wait for it ...

- 48 483 $ with the 3% daily interest ! (no mistake, you can check the calculation i did it twice !)

Why a timer ?

As some of you might know, I am currently investing trough L7.trade platform .

This plaftorm is an arbitrage trading plateform. With it you can buy a coin on an exchange and sell it at the exact same time at a better price on another exchange. Risk free

As know arbitrage is still possible in the crypto space because crypto is in it's infancy and because there are many echanges with different prices at the same. These opportunities will surely disappear as the market mature. I am trying to profit the most of it as it exists.

On average, on my 20 first risk free trades I achieved a return of 1,2% on each of them. Update here : https://www.publish0x.com/from-0-to-1-bitcoin-challenge/day-13-0-o-1-btc-arbitrage-trading-results-day-12-000062-btc-xwwnxp

Here are the arbitrage possible yesterday on L7 trade (exemple as the price moves every sec) : you can see for exemple that the average profit on the XLM trades on L7.trade was at that time about 1,07%.

So, 1% or more per trade, and you can, with this plateform, execute about 1 trade every 4 hours.

So now I am using a timer to remind me every 4 hours to a TRADE. Then, I open L7. trade on my phone or computer and execute my 1% arbitrage.

And for the moment with this little help I am achieving my 3% daily goal !

What is L7. trade ?

It's an arbitrage platform. As you the prices of crypto assets might be different from on exchange to another. With this plateform you can buy low on one exchange and immediatly sell higher on another platform (it's more complex than that but basically it is that). It's a risk free arbitrage.

Tou can find a complete tutorial here : https://www.publish0x.com/from-0-to-1-bitcoin-challenge/l7trade-tutorial-how-make-daily-risk-free-crypto-arbitrage-xknkld

How much can I make?

The arbitrage opportunities are around 5% but the platform uses a lot of intermediary to achieve the arbitrage so there are fees involve and in the end I think I will make between 1 and 2% per arbitrage. Assuming I can do it 3 times a day that's an average of 5% a day !

What is the minimum to trade ?

That's why i choose to convert my BTC in XLM : the mimum are very high in BTC or LTC but starts at 20 XLM (around 2$) plus XLM has no fees so it's easier to arbitrate.

I explain here the process, step by step : https://www.publish0x.com/from-0-to-1-bitcoin-challenge/0-1-bitcoin-challenge-first-investments-how-i-plan-reach-2-d-xdnevr

If you want to give a try please use my referal link : https://l7.trade/?r=201174635 it will help me a lot to reach my goal !

PS : when you register check the spam mailbox, sometimes theri emails end in it.

***

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