In the field of cryptocurrency, there are some crucial knowledge and skills that are not widely known. Today, let's explore a few of these secrets:

1. The Complex Truth of Cost Averaging

Imagine that when a cryptocurrency is priced at 10U, you invest 10,000U; then the price halves to 5U, and you add another 10,000U. At this point, your average cost is not the intuitive 7.5U, but rather 6.67U. This method of calculating cost is extremely important in the volatile world of cryptocurrencies, and understanding it correctly helps you manage your positions more effectively and avoid misjudgments.

2. The Miracle of Compound Interest

Suppose you hold 100,000U and are satisfied with a daily gain of just 1%. If you can maintain this operation over 250 trading days in a year, your assets will miraculously grow to 1,323,200U after one year. If you continue for another two years, your asset scale could even reach tens of millions. Of course, this is based on an idealized assumption of stable returns, but it reveals the astonishing power of compound interest while also challenging how to maintain this growth rate.

3. The Art of Taking Profit and Cutting Losses under Probability Management

Assuming your investment strategy has a 60% success rate and you set a 10% take profit and stop loss for each trade. After 100 trades, your total return could reach as high as 300%. However, the foundation of this achievement lies in strictly executing the trading plan, unaffected by market emotional fluctuations, especially maintaining rationality and calmness in a highly unstable market.

4. Greed: The Biggest Stumbling Block on the Trading Path

Starting with 10,000U, if you can achieve a 10% increase every day, theoretically, on the 49th day, you would have a million in assets, on the 73rd day you would enter the ranks of millionaires, and on the 97th day, you might even reach billionaire status. However, the reality is harsh; very few people can achieve this goal because most struggle to control their inner greed, often failing due to an excessive pursuit of profit. This is the fundamental reason why many traders, despite short-term gains, find it difficult to maintain profitability in the long term.

Through these little-known facts, we can easily discover that successful cryptocurrency investment is not just about simple buying and selling operations, but also a profound test of self-awareness, risk management, and emotional control.

As a seasoned cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the cryptocurrency world but don’t know where to start? Follow me to see my homepage, and I will guide you to achieve freedom in this bull market.