In the cryptocurrency world, careful planning is crucial, and many people never fully understand this.
First, imagine a scenario: if you have a million in funds, if you double it to two million first, and then unfortunately halve it, how much will you hold in the end?
The answer is still one million, which is self-evident, right?
From another perspective, if the initial one million is first reduced by half to 500,000, and then it rises by half, how much will the final balance be?
The answer is revealed, it is 750,000, is it unexpected?
Further, if you start from one million, first experience a 50% increase and then a 50% decrease, the end point is still 750,000.
What does the above case reveal? In the waves of digital currency, we should not only pay attention to the glory of profits, but also be wary of the erosion of losses. Short-term glory may be fleeting, and once a callback is encountered, the results may be wiped out.
To give another example, if we take one million as the base, and grow steadily by 30% every year, what will it be in a year?
Obviously, it is 1.3 million.
So, what about two years later?
The answer is 1.69 million! Although this steady growth is not obvious, the magic of compound interest has quietly emerged.
Just like the legendary Buffett in the investment world, his way to success does not rely on short-term huge profits, but comes from the long-term stable accumulation of income.
An annual return of 20% seems to be within reach, but it is extremely difficult to achieve it for several years or even ten years. Therefore, in the world of digital currency, it is very important to maintain a calm mind and not be blinded by the fantasy of getting rich overnight. Compound interest is the solid bridge to wealth accumulation.
Reasonable position management is also the key. Avoid all-out investment and keep a certain amount of room for maneuver so that you can calmly deal with risks when they come.
Investment requires careful calculation and a rational eye to examine the ups and downs of the market in order to move forward steadily.
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