It took me four years to understand an important truth on the road of cryptocurrency trading. Have you ever thought about the account of cryptocurrency trading and understand the mystery?

Imagine that if you have 1 million yuan in your hand, you first increase by 100%, and then fall by 50%, how much will you have left? Surprisingly, the answer is 1 million yuan! Again, if you first fall by 50%, and then rise by 50%, how much money will you have? The answer is still 750,000 yuan! Even if you first rise by 50% and then fall by 50%, the result is 750,000 yuan.

What do these two examples tell us? They tell us that in cryptocurrency trading, controlling retracements is crucial. Many people may be able to achieve high profits in the short term, but as long as the retracement exceeds 50%, the final result will still return to the starting point, and it will be nothing. Such efforts are in vain!

And what does the other example tell us? It tells us that a stable annualized rate of return is not inferior to a high rate of return with higher volatility. A stable 30% return per year is already considerable! If we can maintain this growth every year and let compound interest work, the returns will become very considerable over time!

From the perspective of the stock market master Buffett, the reason why he can become the stock god is not because he can easily double his money in the short term, but because he can maintain a profit of more than 20% for 47 years. There are too few people who can maintain profits for a long time. Therefore, we should keep a normal mind, be down-to-earth, and believe in the power of compound interest.

In the journey of currency speculation, we must do a good job of position management. Only by choosing carefully and controlling risks can we move forward steadily and obtain more substantial returns. Let us stick to a steady investment strategy, believe in ourselves, and pursue long-term stable wealth growth!