Let me tell you with my experience in cryptocurrency trading over the past few years! (Newbies are advised to read this)


1. About income

Suppose you have 1 million yuan, when the return reaches 100%, the assets will reach 2 million yuan. If you lose 50% next, it means that your assets will return to 1 million yuan. Obviously, it is much easier to lose 50% than to earn 100%.

2. About the price fluctuation

If you have 1 million yuan, your assets will reach 1.1 million yuan after a 10% increase on the first day, and then fall 10% on the second day, and your assets will be 990,000 yuan. On the contrary, if it falls 10% on the first day and rises 10% on the second day, your assets will still be 990,000 yuan.

3. About volatility

Suppose you have 1 million yuan, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year and lose 20% in the sixth year, and the remaining assets are 1.405 million yuan. The annualized rate of return over six years is only 5.83%, which is even lower than the face value interest rate of 5-year bearer treasury bonds.

4. About 1% per day

If you have 1 million yuan, and you leave the market every day if you can earn 1% every day, then after 250 days, your assets can reach 1203.2 million yuan, and after 500 days, your assets will reach 145 million yuan.

5. About 200% per year

If you have 1 million yuan and your return rate reaches 200% for five consecutive years, then your assets will reach 243 million yuan after five years. However, such high returns are difficult to sustain.

6. About 10 times in ten years

If you have 1 million yuan and hope to reach 10 million yuan in ten years, 100 million yuan in twenty years, and 1 billion yuan in thirty years, then you need to achieve an annualized rate of return of 25.89.

7. About covering positions

Suppose you bought 10,000 yuan of a certain currency when it was 10 yuan, and now it has dropped to 5 yuan. If you buy 10,000 yuan again, then the cost of the currency you hold can be reduced to 6.67 yuan, not 7.5 yuan as you imagined.

8. About Holding Costs

If you have 1 million yuan and invest in a certain currency and make a 10% profit, when you decide to sell, you can leave 100,000 yuan worth of chips, then your holding cost will be zero, and you can hold it for a long time without any pressure. If you are extremely optimistic about this currency and leave 200,000 yuan worth of chips, you will find that your profit will increase from 10% to 100%, but don't be complacent, because if the currency falls by 50% later, you may still lose money.

IX. Asset Portfolio

There is a risk-free asset A (annual return of 5%) and a risky asset B (return of -20%-40%). If you have 1 million yuan, you can invest 800,000 yuan in risk-free asset A and 200,000 yuan in risky asset B. Then your worst return for the whole year will be 0.03%, and your best return may be 12%. This is the prototype of the CPP technology applied to the principal protection fund.

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