Crypto is all about the numbers and understanding what those numbers represent in terms of growth unlocking new monetary values. Knowing the numbers will help you decide on what future action if any to take in order to earn more rewards.
This being the 4th year of the crypto cycle is not the most ideal time for thinking long term especially if you are planning on selling you portfolio. The good part about all of this is once you know where and how the growth happens you can at least make an informed decision when you buy back in when the prices do drop.
Just to highlight what is possible in terms of growth I am going to use my COTI stake as an example. I know via the various APR in my various stake pools I am earning roughly 54 COTI daily. This equates to around about 21K COTI per year which is 1.8K per month. This figure was calculated including the 6.02% APR which s currently on offer. Obviously this figure can go up or down and is more of a guide and I do think we will see this figure rise as it is considered fairly low.
The other part that influences the growth is the governance token being GCOTI ad this is where the real growth is taking place. If we were starting early next year giving us a 4 year time frame this would be seriously ideal. The daily rewards being earned and staked boost the number of GCOTI tokens one receives weekly. This is where the magic happens and you will be amazed at the growth and why I wanted to show you the numbers.
As you can see from the above screen shot I am only benefitting from 4.02% APR out of a maximum of 24.08% currently. This I am happy with for now as the 14 043 GCOTI I have staked in this pool will grow along with the COTI stake and will remain a constant 4.02% along with the 6.02% combining for a total of 10.04% PR. Where we are in the cycle tells me not to invest in more GCOTI and only worry about the COTI. I will buy the GCOTI required in the next cycle and the aim and focus has to be on the COTI number.
The current 315 GCOTI I receive weekly will slowly increase even if it is by only 2 GCOTI weekly it adds up quickly. This is the part where you need to understand the numbers and how the growth escalates quickly.
315 GCTI added weekly represents an additional 0.2 COTI being earned daily in real time growth along with the daily rewards of 54 generating an extra 0.06 COTI daily via the 6.02% APR. The combined figure of 0.26 being earned daily after each weekly addition of GCOTI rewards changes things. Next week that figure becomes 0.26 plus 0.26 so within a month you are already earning an extra 1 COTI daily. Within 1 year that 0.26 daily reward is now worth more than 14 COTI daily due to compounding. Over a 4 year period you would have more than doubled your earnings without having to invest and be earning in the region of 120 COTI daily.
From this example one can clearly see given some time how lucrative stake can be and what types of returns it can generate. This type of exercise can be done on any crypto staked highlighting if that project is worthwhile or possibly another project offering far more. Crypto is very easy once you understand the numbers and why I encourage anyone to always look deeper into the numbers giving you a rough forecasting idea of where your stake will be in the next few years.