In the cryptocurrency market, where opportunities and risks coexist, have you ever been fooled by those seemingly attractive trading strategies? Today, I will share with you four little-known cold knowledge to help you avoid the greed trap and achieve steady profits!
1. Misunderstandings of Cost Calculation
Have you ever calculated the cost like this: when the price of the currency dropped from 10U to 5U, you bought 10,000 U twice and thought the cost was 7.5U? Wrong! In fact, the cost should be 6.67U. Because the average cost is not a simple sum of the prices divided by two, but is calculated based on the purchase amount and quantity. This little knowledge is very critical and directly affects your accurate grasp of transaction costs.
2. The Power of Compound Interest
Suppose you have 100,000 yuan in capital and earn 1% every day, don't underestimate this number. After 250 trading days a year, your assets will grow to 1.3232 million yuan! And two years later, you may have 10 million yuan! This is the power of compound interest, telling us that continuous and stable income is the kingly way to increase wealth.
3. The truth about investment success rate
If your investment success rate is 60%, and you set a 10% take-profit and stop-loss each time, and invest 100 times in a row, do you know what the final rate of return is? It is astonishingly 300%! Reasonable take-profit and stop-loss combined with a certain success rate are the key to obtaining high returns.
4. The get-rich-quick trap
Entering the market with 10,000 U and making a profit of 10% each time, it seems very tempting, right? According to this calculation, you can have 1 million U in 49 days, 10 million in 73 days, and over 100 million in 97 days! But this speed is not realistic, because market fluctuations and risks cannot guarantee that you will make a profit of 10% every time. Blindly pursuing quick wealth will only make you ignore risk management and eventually suffer heavy losses.
How to make stable profits?
The answer is simple: do a good job of position management and fund management. Position management is to reasonably allocate funds according to your financial strength and risk tolerance; fund management is to strictly control risks during trading to avoid unnecessary losses due to greed or panic. Only by doing these two points can you be invincible in the cryptocurrency circle.
Finally, let's talk about the PEOPLE coin. Although it has increased by more than ten times, I personally think that this increase is difficult to sustain because it lacks practical application scenarios. Of course, everyone has their own investment strategies and preferences, but I always think that we should focus on the long-term value of the project rather than pursuing short-term surges.
In general, you should stay calm when trading in the cryptocurrency circle, manage your positions and funds well, and don't be led by greed. In this way, you can steadily make profits in this market full of opportunities and challenges!
If you are confused about trading and don’t know the direction, you can find me and I will help you embark on the road to wealth.
