Many people understand compound interest as buying an asset and holding it for 10 years to earn dozens of times.

Basically, all the major influencers in the market tell you that compound interest is the eighth wonder.

As long as you firmly hold onto good assets, you will definitely achieve financial freedom in the future.

In fact, this kind of compound interest is an exceptionally distant fantasy.

Anyway, what I know is that almost no poor person has truly achieved this.

If such a group achieves this, it is also done passively.

There are cases of relying on others to achieve this, such as investing in a BTC fund in the early years, which only opened for redemption after 10 years.

For example, if you bought a house earlier, or if you kept gold jewelry, you would be welcomed by a market wave.

This firm holding is crucially based on understanding. Simply holding without understanding is useless.

Thus, the process of holding onto something firmly and continuously investing later must rely on cognitive upgrades. This cognitive upgrade investment plus your time investment is the true essence of compound interest; this is the core of making money.

It is not as they say in the market: just buy and hold. You simply cannot hold it. This is a very irresponsible logic, for example, they usually mock those who cannot hold: it's your own fault if you can't hold it.

There are many forms of making money, and there is no absolute standard.

No one can rely on ignorance, holding onto something just because someone says it's good for 10 years, especially when you have no money.

What I understand about compound interest can be illustrated through the crypto space.

Assuming your initial capital is only 50,000.

What you should really do first is to buy BTC, earn some money from BTC since it's the easiest to profit from.

If you can't even profit from BTC, then there's no need to buy anything else, for example, if your 50,000 turns into 100,000.

During this period, you must have felt the market; you will learn diligently about various patterns and investment logic in the crypto space.

If you have 100,000, you might play with others and lose it all. But that's okay; this loss will definitely give you some insights.

Even if you lose everything, you can continue to earn outside the market, buy a portion of BTC, and then buy others.

At this point, your ability index will have increased by 30%. You will at least know what not to buy and whose words not to listen to.

You will chase new trends; whatever comes out, you will dare to fight for it, naturally with the possibility of losses.

However, you are not simply losing money; you are not buying without logic. You will feel the market's heat, changes in the market, and invest your valuable money based on market trends.

If you keep persisting, you will definitely earn at least once, and at that moment, your ability index will increase by 50%.

You hit it, but if you don't master when to sell, you might miss the peak or sell after a significant drop.

But that's okay; you will definitely learn next time. This ability accumulation will give you real compound interest capability in investing.

In the next round, you may still lose everything, but your mindset will be very good. You will understand the losses and gains clearly.

You have faced the ups and downs of this market with indifference. Next time you encounter an opportunity, you will know that you will profit.

When you encounter good opportunities again, you earn once more, and at this point, you learn to exit at high positions; your ability index will rise to 70%.

At this point, you should have a considerable capital, 300,000, 500,000, or even 1,000,000 are all possible.

At this time, you will learn the logic and use your abilities to invest as you did before; your losses will no longer erode your capital forever.

Of course, you will have losses and gains, with more gains than losses. Each market cycle, you continuously accumulate capital, turning 1 million into 1.5 million, then 2 million.

In three years, you might have two opportunities, and soon your capital will reach 5 million. At this point, your ability index will be around 90%.

The remaining 10% is your mindset control and the honing of your character, which the market cannot help you with; it all depends on your own enlightenment.

In the end, your capital will break through to A8. Continuously seize opportunities and roll your capital; this is true compound interest.

Only this method of compound interest can achieve true financial freedom.

If you start with a small capital, continuously invest through work over 10 or 20 years, you can theoretically become wealthy. However, without the support of cognitive logic, you will not be able to hold on for 10 years.

Things that cannot be done may yield the same results after 10 years, but for most people, it is meaningless. Moreover, those who say such things are basically looking at issues through the rearview mirror of 10 years later. This is completely meaningless.

The essence of compound interest lies in the refinement of one's own understanding, rather than merely accumulating funds and time on the target.

The essence of this compound interest understanding and the accumulation of time will create a qualitative change in your wealth.

At this point, you have crossed A8, and you can basically consider yourself financially free.

Once you reach A8, you have basically jumped over the dragon gate. You have overcome the most difficult hurdle for most people.

If you are not relying on luck, then after one more cycle, reaching A9 is just a matter of time.