According to @QCompounding, compounding is most powerful when gains are not taxed, and repeated taxation at each step slows growth so the terminal amount is much smaller, source: @QCompounding. For traders and crypto investors, this principle means frequent taxable realizations reduce reinvested capital each period, lowering after-tax CAGR and end wealth compared with deferring taxes, source: @QCompounding. In practice, reducing turnover and minimizing taxable events helps preserve compounding efficiency in volatile assets like crypto across multiple periods, source: @QCompounding.