Cryptocurrency trading family must understand the principle of capital black hole:

Longest people Cryptocurrency Trading do not understand all their lives.
If you have 1 million yuan, pump 100% first, then fall 50%, long less?
The answer is $1,000,000.
If you have 1 million yuan, fall 50% first, then pump 50%, long is left?
The answer is $750,000.
If you pump 50% first, and then fall 50%, long is left?
The answer is also 750,000 yuan.
If you have 1 million yuan, the annual steady rate of return is 30%, and long is left after 1 year?
The answer is $1.3 million
long few left after 2 years?
The answer is $1.69 million.
What do the first two examples illustrate? They show that in Cryptocurrency Trading, controlling drawdowns is always the first priority. In real life, Xu long people may be able to achieve 100% or even 200% profit in the short term, but in the long run, as long as the return drawdown exceeds 50%, the final result is still to be beaten back to the original shape by the drawdown, a short, or even in vain!
What does the third example illustrate? It illustrates that a solid APR yield is not inferior to a high yield with higher Fluctuation. A steady return of 30% per year is already quite considerable! On this basis, the annual compound interest rise and time will be extended, and the income will become very considerable!
From the perspective of a stock market guru, why has Warren Buffett become a stock god? Not because he can easily double in the short term, but because he has been able to maintain a profit of more than 20% for 47 years. That's the magic of asset compound interest!!
More than 20% of long profitability may be achieved in a short period of time, but there are very few people who can sustain it for more than five or ten years. Therefore, we should all remain calm, keep our feet on the ground, and always believe in the power of compound interest.
Be sure to do a good job in Position Management and Risk Management!