You have to do a good job of calculating the account when it comes to cryptocurrency trading. Many people never figure it out in their lifetime!
Let me ask you a question first. If you have 1 million, you double it to 2 million, and then lose half of it. How much do you have left in the end?
The answer is 1 million, right?
Then, if you have 1 million, you lose half of it to 500,000, and then earn half back, how much do you have left in the end?
The answer is 750,000. Are you surprised?
Also, if you have 1 million, it rises 50% and then falls 50%, how much do you have left in the end?
Yes, it is also 750,000.
What do these examples show? When trading cryptocurrencies, don't just look at how much you earn, but also watch out for not losing too much! You see, no matter how much you earn in the short term, you will lose everything once you retreat.
Let me give you another example. If you have 1 million and earn 30% steadily every year, how much will it be in a year?
1.3 million, right?
What about two years later?
1.69 million! You see, although it is not a sharp increase, the compound interest effect is amazing.
This is like Buffett. Why can he become the stock god? It is not because he can always make a lot of money in the short term, but because he can make money in a long-term and stable manner.
It sounds easy to make 20% a year, but can you guarantee that you can do it for five or ten consecutive years? So, when it comes to cryptocurrency trading, you have to keep a steady mind. Don't always think about getting rich quickly. Take it slow. The power of compound interest is very strong.
In addition, position management is also very important. Don't invest all in it. You have to leave some room so that the risk can be controlled.
In short, when it comes to cryptocurrency trading, you have to do a good job of calculating the accounts and don't be overwhelmed by the temporary rise and fall.
If you can't find the direction in the cryptocurrency circle and don't know what coin to buy, look at my pinned post to find me and share more information and strategies related to the cryptocurrency circle for free.