Over the years, one of my biggest challenges as a newsletter editor has been convincing people that 29.9% annual gains are the holy grail of investing.
For instance, we’ve recorded an average annualized return of 29.9% in my options newsletter since it launched in 2018. That’s more than double the S&P 500’s annual return of 14% over the past 10 years.
If you come from a Wall Street background like I do, you understand most of these guys would sacrifice their firstborn to rake in 29.9% per year.
And I get why people aren’t blown away by 29.9% annualized gains, though…
Asymmetric ideas like crypto and private deals are super sexy. They give you the chance to potentially turn $500 into $5,000, $50,000, or even $500,000.
These aren’t just pie-in-the-sky projections, either. My subscribers have had the chance to see gains of 14,478%, 20,377%, and 30,877% from my crypto recommendations.
By comparison, compounding double-digit gains year after year is slow and boring… But it’s one of the surest ways I know of to build wealth…
When you compound, you put your money in an investment that pays income in the form of interest, dividends, and capital distributions. Then you take the interest you earned at the end of the year and reinvest it into your original stake.
Now, your interest earns a return, as well.
The next year, you’ll get a bigger interest payment. Then, you’ll reinvest that payment, and so on…
It’s similar to the snowball effect…
As you roll the ball through the snow, the surface area gets bigger. The more surface area on the snowball, the more snow it picks up. The snowball gains mass slowly at first… but pretty soon, you can’t move it because it’s so huge.
Gradually, the interest you earn grows, and your reinvestments increase. And the longer you allow your money to compound uninterrupted, the more it grows.
I’ve done this type of compounding in my own portfolio.
I buy safe, blue-chip stocks that pay solid dividends and then reinvest the dividends each year into other investments that can compound my returns even more.
I’ve grown my portfolio of income investments to the point that I can reinvest my “safe” income into more aggressive ideas that compound my money at much higher rates than I can get from blue-chips.
The key here is that I only use my “safe” income to fund these more speculative investments.
All of my earned income (from my work) goes into safe income-producing investments such as blue-chip stocks and conservatively financed income-producing real estate deals.
This approach keeps my initial money safe while throwing off an ever-growing river of income I can redirect into higher-yielding ideas.
The beauty of this approach is that – in a worst-case scenario where all of my more speculative investments failed – I would still have my “safe” money generating an uninterrupted source of income year after year.
Today, I’ll show you the power of compounding to build your wealth… plus a new way to compound using the explosive upside of cryptocurrencies.
The Power of Compounding
Just look at the chart below… It shows the value of a $10,000 account growing at 10% per year over 60 years.
We call this the “hockey stick” chart because the money grows slowly for several decades, then really picks up speed after about 40 years.
If you don’t interrupt it, compounding produces a fortune.
At 10% interest, it takes 40 years for $10,000 to grow into $411,000 (see the red arrow).
That’s pretty good. But do you see what happens next? The growth of the account explodes.
By year 50, it’s grown to just over $1 million.
By year 60, it’s grown to more than $3 million.
In short, the power of compounding is most effective when you let it work over many decades.
And now, there’s a new subclass of cryptos that allow you to compound your wealth.
You see, many altcoins pay out rewards. And by placing a stake in one of these projects, you can set yourself up for a steady income stream.
All you have to do is “buy and hold”… And let the magic of compounding do the heavy lifting for you.
The Power of Crypto Compounding
The subclass of altcoins I’m referring to makes automatic payouts we call “crypto income.” (Longtime readers may also know them as “Tech Royalties.”)
These income payouts are somewhat similar to stock dividends. But you receive more of the underlying crypto instead of being paid in cash.
Best of all, because they have the explosive upside of crypto… the return from compounding will soar as the crypto goes up in price.
And if prices fall, you’re still pocketing “free” crypto that could rise in value in the future.
I believe these altcoins create the opportunity to see 55 years’ worth of stock market gains monthly in the next 365 days.
And this isn’t hyperbole, either…
A token I recommended in March 2020 went up as much as 71,418%… enough to turn every $500 into $358,090 and $1,000 into $715,180.
It paid us as much as $6,500 a month in income on a $1,000 investment at its peak. Over an entire year, that’s an additional $78,000 in income, or 78 times your initial investment.
Another token we added in March 2020 has been up as much as 4,143%… enough to turn every $500 into $21,214 and $1,000 into $42,429.
We also earned a roughly 6.5% yield on that one. Over the last year, it paid an additional $3,000 in income on a $1,000 investment, or three times your initial stake.
Lastly, we added another crypto rewards token that went up as much as 5,367% since September 2019.
That’s enough to turn every $500 into $27,337 and $1,000 into $54,674. On top of that, we earned a 6% yield, which paid an additional $3,300 in income over the past year on a $1,000 investment.
Across that investment lifetime of 20 years, most investors only hope to make the equivalent of the average annual gain of the S&P 500 – about 10% per year.
That comes out to 200% cumulative gains over 20 years.
But with one of my crypto income tokens, you could’ve seen a 71,418% gain, plus an additional $78,000 in income… in a fraction of the time.
That’s the power of crypto income tokens. They’re an asset class unlike any other in history.
If you want to try your hand at crypto compounding, consider staking some Ethereum on a platform like Kraken. It pays a 7% yield in the form of ether (ETH), Ethereum’s native token.
You’ll get a steady stream of income that increases over time as the underlying ether becomes more valuable.
Friends, I know compounding isn’t as sexy as a one-time explosive payout… like turning $500 into $50,000 on a well-timed investment.
The difference is that compounding with crypto income is guaranteed since it’s coded in the tokens’ protocol.
It may take longer, but you know that your investment will return more crypto… and keep returning crypto on top of that… until you cash out.
It’s a rare chance to earn steady and predictable income payments that can balloon into a massive passive income stream over time.
Let the Game Come to You!
P.S. If you’re looking to take your first steps into crypto income and don’t know where to start, consider this…
I believe you’ll see some of the fastest gains in history if you invest in the foundational cryptos and companies leading NFT and metaverse development…
That’s because a coming catalyst is about to accelerate the adoption of these projects. And when you combine explosive adoption with the compounding power of crypto income… the sky’s the limit.
So click here for details on getting started… you’ll even get a free pick (no strings attached) that could potentially 10x your money when this trend takes off.
(Once you’ve subscribed, you’ll also get immediate access to a portfolio of over 20 diverse, actionable investments you can make right now.)