Do you understand the account of the cryptocurrency circle? Many people do not understand it after half a lifetime of cryptocurrency trading.

1. If you have 1 million, it will rise by 100% first, then fall by 50%, how much will be left? The answer is 1 million

2. If you have 1 million, it will fall by 50% first, then rise by 50%, how much will be left? The answer is 750,000. It will rise by 50% first, then fall by 50%, how much will be left? The answer is 750,000

3. If you have 1 million, the annual steady return is 30%, how much will be left in 1 year? The answer is 1.3 million, how much will be left in 2 years? The answer is 1.69 million

What do the first two bills show? It shows that controlling the retracement of stock trading is always the first priority. In real life, many people can achieve 100% or even 200% profit in the short term, but in the long term, as long as the profit retracement exceeds 50%, it will eventually be reduced to its original shape by the retracement, and the work will be in vain!

What does the third bill mean? This shows that the steady annualized rate of return is not inferior to the floating high return, and 30% per year is very remarkable! On this basis, the compound interest grows every year, the cycle is extended, and the income is very considerable!

From the perspective of the stock market god, using data, why can Buffett become the stock god?! It is not that he can double his money casually in the short term, but that he can maintain a profit of 20%+ in 47 years. Many people can achieve a profit of 20%+ in the short term, but it is rare to be able to maintain it for more than five or ten years. So everyone should keep a normal mind, be down-to-earth, and always believe in the power of compound interest. How to compound interest, pay attention to me, and update the next article!

The trend of the currency circle is full of uncertainty and challenges, but it also contains potential opportunities. When participating in cryptocurrency investments, investors should fully understand the relevant risks, remain calm and rational, and respond to market changes with sound strategies!