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01 Aug,2017
News of Investellect
Hello Dear Investors and Guests,
Today we have a really great news!

The proposal to scale the Bitcoin UASF network (BIP 148 - user-activated soft fork) was successfully activated on the night of Tuesday, August 1, at block 478484. At the same time, the price of Bitcoin, having sta...
30 Jul,2017
News of Investellect
Hello Dear Investors and Guests,
We are 865 days online already and happy to share some updates for you.
As you know the SegWit updates of Bitcoin network are coming. I would like to notice that BIP 91 of Bitcoin protocol has been activated that it will make the network more powerful
27 Jul,2017
News of Endlessror Global LLC
Dear visitors of the website! We have recently introduced a new Chat widget feature we hope you will find useful.
27 Jul,2017
News of Coin Art Fusion
Dear Member and Investors,
Our "COIN ART FUSION INVESTMENT LIMITED" is UK Gov. Register Investment company EV SSL Certified. Only launch time 3 days Now Total deposit $8500 plus.
27 Jul,2017
News of SafeInvltd
Safeinvltd Team would like to thank you and trust us during all these 200 days online. Thank you to invest with us, our mission is to make your investment profitable. Let's go to another 200 days and more.
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Article
Compounding 
Published 2006/6/29
Article Rated: 6.98
1.8 star rating (97 votes)
Compounding refers to generating earnings from previous earnings. The ability of current investment value to generate earnings, which are then reinvested in order to generate their own earnings.

Suppose you invested $1,000 into a particular HYIP that pays 30% monthly interest. The first month, the shares rises 30%. Your investment is now worth $1,300. . In the second month, the shares appreciate another 30%. Therefore, your $1,300 grows to $1,690. In the third month, the shares rises 30%, your principal will be $2, 197. IF you watch the rate of growth for every month, the growth rate increases with time. i.e. In the first month growth is $300, in the second month $390, and in the third month $507, and so on. If you extrapolate the process out, the numbers can start to get very big as your previous earnings start to provide returns. In fact, $1,000 invested at 30% monthly for 1 year would grow to nearly $23,300.00 (and that's without adding any money to the investment)!

As you have seen earlier, for a business involved in a real investment opportunity, compounding produces extremely good result. But you should be careful on how to use compounding in HYIPs.

One of the greatest problems in HYIPs arena is that it is impossible to predict the life span of a particular HYIP. Thus, it is important to take a mechanism to make your investment safe. One way of doing this is to properly use different compounding options

Let‘s see what does this mean:

Say you invested $1,000 into a particular HYIP that pays 30% monthly interest. As we have seen it earlier, with 100% compounding, there is a possibility that $1,000 invested at 30% monthly for 1 year would grow to nearly $23,300.00. But what would happen if the HYIP goes out of business in 6 months? You lose all your hard earned money badly. For that reason, it is important to implement a technique on how to implement compounding in HYIPs.
It is always recommended to get your original spend back as fast as possible, i.e. set the compounding option to 0% until you return back your initial investment, then after, you can compound your shares while withdrawing 50% of your profit by setting the compounding option to 50% . Why 50%? Actually this is not a strict rule; it is my recommendations based on my experiences in HYIPs. But you have to be careful with this. Always watch out every HYIP you invested for the red flag. If you see any red flag for a particular HYIP, keep on withdrawing by setting the compounding option to 0%.



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