In the cryptocurrency world, there are some little-known facts or tricks that are often overlooked, yet are very important. Today, I would like to share a few:

1. Cost averaging is not as simple as it seems.

For example, if you invest 10,000 U when the price of a coin is 10 U, and then add another 10,000 U when the price drops to 5 U, your average cost is actually 6.67 U, not the 7.5 U that many people believe. This situation is very common in market fluctuations, and understanding this cost calculation method is helpful for managing positions.

2. The compounding effect is astonishing.

Assuming you have 100,000 U and earn 1% daily before exiting. If you can maintain 250 trading days in a year, your assets will grow to 1,323,200 U after one year. Continuing for two years, your assets could even reach tens of millions. Of course, this result is based on stable returns, but the hidden challenge is how to consistently maintain this compounding.

3. The relationship between probability and take-profit/take-loss.

If your investment success rate is 60%, and you set a 10% take-profit and take-loss each time, after 100 trades, your total return can reach 300%. However, this premise requires you to strictly follow your trading plan and not let market fluctuations affect your emotions, especially in high-volatility markets.

4. Greed is the greatest enemy.

If you start with 10,000 U and earn 10% each time, by the 49th day your assets could reach 1,000,000 U, and by the 73rd day, you could break through 10 million U, with a chance to exceed 100 million by the 97th day. However, in reality, very few people can achieve this, as most cannot control their greed during the process, leading to losses along the way. This is why many traders, despite being profitable, find it difficult to maintain long-term success.

Contract trading and position management.

In contract trading, position management and capital management are key to success or failure. Many people use 20%-30% of their principal as a base position, but I personally prefer to use only 2%-5% and apply 20x leverage. This effectively controls risk and avoids emotional decisions caused by excessive volatility.