The essence of cryptocurrency trading lies in grasping several core elements:

1. Profit and loss balance and risk control: Imagine that if you invest one million yuan in principal and double your profit to two million yuan, but then lose half of it, you will return to the starting point. This highlights the importance of setting profit exit points and loss limits, because the market is often faster when it goes down than when it goes up.

2. Profit and loss illusion in fluctuations: If the principal of one million yuan rises by 10% on the first day and becomes 1.1 million yuan, if it falls by the same amount on the next day, the balance will only be 990,000 yuan. Intuitively, there seems to be no big loss, but in fact, a small profit has been lost. Therefore, it is key to select projects with small fluctuations and steady growth.

3. The long-term effect of market fluctuations: If an annual return of 40% is followed by an annual loss of 20% in six years, the capital will only increase to 1.4 million yuan in the end, and the total growth rate is less than 6 percentage points, which is far inferior to bank savings. This warns us to be vigilant against the erosion of long-term market fluctuations.

4. Amazing accumulation of compound interest: With a daily return of 1%, a principal of one million can jump to 12 million in just 250 days, and expand to 145 million in 500 days. This strongly proves the huge potential of continuous small profit reinvestment.

5. Annual doubling strategy: Invest one million in two projects annually, double the annual average, and the assets can expand to more than 200 million after five years. This explains why long-term holding of high-quality currencies can create huge wealth.

6. Intelligent replenishment to reduce costs: Initially buy a certain currency for 10 yuan, and then double it when it falls to 5 yuan, and the average cost drops to 6.67 yuan. This strategy cleverly uses market fluctuations to effectively spread the investment cost.

7. Diversified investment portfolio: Entering the currency circle, building a diversified asset portfolio including stablecoins (annualized return of about 3%) is the basis. By allocating risk and risk-free assets in a ratio of 4:1, your investment security is steadily protected.

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