Automatic
Compounding
Interest accrues every second and is automatically reinvested.
Interest accrues
Every second
Reinvestment
Accrual
Every second
Claiming
Not needed
Dollar Savings
7.50% APY
Reinvestment
Automatic
The APY shown is the fixed rate currently in force. It may be revised as market conditions evolve; a new rate applies to existing balances as well as new deposits.
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The manual compounding problem
Many crypto platforms require you to manually claim rewards and reinvest them. Each time you compound, you pay gas fees that can range from $10-50 depending on network congestion. If you forget to compound for a month, you miss significant returns. Manual compounding is inefficient, expensive, and defeats the purpose of passive income.
Manual vs automatic compounding
Manual compounding
- Must manually claim rewards regularly
- Pay $10-50 gas fee each time you compound
- Forget to compound? Miss significant returns
- Small balances not viable (fees too high)
- Requires constant monitoring and action
- Not truly passive income
Coinstancy automatic
- Interest accrues every second and is automatically reinvested
- No claiming transaction for you to pay for
- Nothing to claim or reinvest manually
- Works for all balance sizes (even $100)
- Completely hands-off (set and forget)
- True passive income (works while you sleep)
How automatic compounding works
Interest accrues
Interest accrues every second on your Savings balance.
Automatic reinvestment
Accrued interest is automatically reinvested, so it becomes part of the balance that earns interest.
Nothing to claim
You never need to claim rewards or submit a reinvestment transaction yourself.
Compound effect
Reinvested interest earns interest too. The APY shown is an annualised yield that already includes this effect.
The power of compounding
| Time Period | Simple Interest (7.50%) | Automatic reinvestment (7.50% APY) | Extra Earnings |
|---|---|---|---|
| Initial deposit | $10,000 | $10,000 | $0 |
| After 1 year | $10,750 | $10,750 | +$0 |
| After 3 years | $12,250 | $12,423 | +$173 |
| After 5 years | $13,750 | $14,356 | +$606 |
| After 10 years | $17,500 | $20,610 | +$3,110 |
Illustrative example: over 10 years, automatic reinvestment would earn an extra $3,110 (41% more interest) compared to simple interest at the same 7.50% rate.
Dollar Savings, current fixed APY 7.50%. The APY is an annualised yield that already includes the effect of automatic reinvestment. Projection = deposit × (1 + APY)^years, assuming the current rate stays unchanged for the whole period, which is not guaranteed. Illustrative only, not a promise of future returns.
Real-world use cases
Long-term wealth builder
Illustrative example: Maria deposits $50,000 and leaves it for 10 years. With automatic reinvestment at the current 7.50% APY, she would earn $53,052 in interest, versus $37,500 with simple interest, if the rate stayed unchanged for the whole period (not guaranteed).
Small balance saver
Illustrative example: Jake only has $500 to save. On platforms requiring manual compounding, claiming transactions can cost more than the interest itself on a small balance. With Coinstancy, interest is reinvested automatically, with no claiming transaction to pay for.
True passive income
Illustrative example: Robert travels frequently for work and doesn't have time to monitor his investments. He deposits $25,000 and never touches it. Because interest accrues every second and is reinvested automatically, there is nothing for him to claim or reinvest.
Frequently asked questions
How does automatic compounding work?
Interest accrues every second and is automatically reinvested. This means your interest earns interest over time.
How often is my interest compounded?
Interest accrues every second and is automatically reinvested. The APY shown is an annualised yield that already includes the effect of automatic reinvestment.
Do I pay gas fees for compounding?
No. You do not need to submit any transaction to reinvest your interest, and Coinstancy charges no fee on Savings yield.
Do I need to do anything to activate compounding?
No action required. Once you deposit into Dollar Savings, interest accrues every second and is automatically reinvested.
What's the difference between simple and compound interest?
Simple interest only earns on your initial deposit. With automatic reinvestment, you also earn on previously accumulated interest. Illustrative example: $10,000 in Dollar Savings at the current 7.50% APY over 10 years would reach $20,610, versus $17,500 with simple interest, assuming the current rate stays unchanged for the whole period, which is not guaranteed.
Is there a minimum balance for compounding to work?
Automatic reinvestment works on any balance. The minimum deposit for Dollar Savings is $10.
Start compounding today
Interest accrues every second - Automatically reinvested - Nothing to claim