In the cryptocurrency world, there are some little-known facts or tricks that are often overlooked but are very important. Today I'll share a few:

1. Cost averaging is not as simple as you might think.

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

2. The power of compound interest is astonishing.

Assuming you have 100,000 USD and earn 1% daily before exiting. If you can maintain 250 trading days in a year, then your assets will grow to 1,323,200 USD after a 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 effect.

3. The relationship between probability and profit-taking/stop-loss.

If your investment success rate is 60%, and you set a 10% profit-taking and stop-loss for each trade, after 100 trades, your total return could reach 300%. But this premise is that you strictly follow your trading plan, not letting market fluctuations affect your emotions, especially maintaining calm in highly volatile markets.

4. Greed is the biggest enemy.

If you start with 10,000 USD and earn 10% each time, by the 49th day, your assets could reach 1 million USD, on the 73rd day, you could break into tens of millions, and by the 97th day, you might even surpass 100 million. However, in reality, almost no one can achieve this because most people cannot control their greed during this process, leading to failure along the way. This is why many traders find it difficult to maintain long-term profits even when they are making money.