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

1. Cost averaging is not as simple as imagined

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

2. The compounding effect is astonishing

Assuming you have 100,000 U and make 1% profit daily before cashing out. If you can maintain 250 trading days in a year, your assets will grow to 1,323,200 U after one year. Continuing for two years, your assets could even reach the tens of millions. Of course, this result is based on stable returns, but the hidden challenge is how to continuously maintain this compounding.

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

If your investment success rate is 60%, and you set a take-profit and stop-loss of 10% each time, after 100 trades, your total return can reach 300%. But this premise is that you strictly follow your trading plan and are not emotionally affected by market fluctuations, especially in highly volatile markets.

4. Greed is the biggest enemy

If you start with 10,000 U and earn 10% each time, on the 49th day your assets could reach 1,000,000 U, on the 73rd day it could exceed 10 million U, and on the 97th day there is even a chance to surpass 100 million. However, in reality, very few people can achieve this because most cannot control their greed during this process, leading to failure along the way. This is why many traders find it difficult to maintain profits over the long term.