Beginner's Guide

1. About Returns

Assuming you have 1 million, when the return reaches 100%, your assets will reach 2 million. If you then lose 50%, it means your assets will go back to 1 million. Clearly, losing 50% is much easier than gaining 100%.

2. About Price Fluctuations

If you have 1 million, after a 10% increase on the first day, your assets will reach 1.1 million, and then after a 10% decrease on the second day, your assets will remain at 990,000. Conversely, if you decrease by 10% on the first day and increase by 10% on the second day, your assets will still be 990,000.

3. About Volatility

If you have 1 million, earning 40% in the first year, losing 20% in the second year, earning 40% in the third year, losing 20% in the fourth year, earning 40% in the fifth year, and losing 20% in the sixth year, your assets will remain at 1.405 million, with a six-year annual return rate of only 5.83%, even lower than the five-year bond's coupon rate.

4. About 1% Daily

If you have 1 million, if you can earn 1% daily and then exit, after 250 days, your assets can reach 12.032 million, and after 500 days, your assets will reach 145 million.

5. About 200% Annually

If you have 1 million, if you achieve a return of 200% for five consecutive years, then after five years, your assets will reach 243 million; however, such high returns are very hard to sustain.

6. About Ten Times in Ten Years

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

7. About Averaging Down

Assuming you bought a cryptocurrency at 10 dollars with 10,000 dollars, and now it has dropped to 5 dollars, if you buy another 10,000 dollars, your average cost will decrease to 6.67 dollars, not the 7.5 dollars you might expect.

8. About Holding Cost

If you have 1 million and invest in a cryptocurrency with a profit of 10%, when you decide to sell, you can leave 100,000 dollars worth of chips, then your holding cost will be zero, allowing you to hold long-term with no pressure.

As a seasoned cryptocurrency investor, I freely share my experiences and insights. Interested in the cryptocurrency world but don't know where to start? Click my avatar to see the introduction to Zhuye, and witness the moment of miracles together.