Question
If I hold a cryptocurrency (ATOM) that gains interest that I must manually compound, when is the best time to do so? Let current holdings
If I hold a cryptocurrency (ATOM) that gains interest that I must manually compound, when is the best time to do so?
Let current holdings of crypto-asset A = 1.861547 (this may increase as I buy more, and will always increase when interest is compounded)
Let interest rate R = 14.44% APY [per year] (this may fluctuate occasionally) CONTINUOUSLY THROUGHOUT THE YEAR, as in always earning.
The fee for claiming rewards (manually compounding the earned interest) is 0.0035 ATOM (flat fee NOT a percentage)
Current unclaimed rewards (accrued interest not yet compounded) 0.007156 ATOM
What formula can I use to maximize profits? If I wait too long to compound, I'm missing out on potential extra earnings from interest. If I do it too often, I pay too much in fees. I need to find the perfect time to claim my rewards.
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