I will tell you with my experience of more than ten years of cryptocurrency trading!!! (Newbies are advised to read this)
1. About income
Suppose you have 1 million yuan. When the income reaches 100%, your assets will reach 2 million yuan. If you lose 50% next, it means that your assets will return to 1 million yuan. Obviously, losing 50% is much easier than making 100%.
2. About the rise and fall
If you have 1 million yuan, your assets will reach 1.1 million yuan after a 10% increase on the first day, and then 990,000 yuan after a 10% drop on the second day. On the contrary, if it drops 10% on the first day and rises 10% on the second day, the assets are still 990,000 yuan.
3. About volatility
If you have 1 million yuan, you earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year. The remaining assets are 1.405 million yuan, and the six-year annual yield is only 5.83%, even lower than the face value interest rate of 5-year certificate treasury bonds.
4. About 1% per day
If you have 1 million yuan, if you can earn 1% every day and leave the market, then after 250 days, your assets can reach 1203.2 million yuan, and after 500 days, your assets will reach 145 million yuan
5. About 200% per year
If you have 1 million yuan, if the return rate reaches 200% for 5 consecutive years, then your assets will reach 243 million yuan in 5 years, but this high return is difficult to sustain.
6. About 10 times in ten years
If you have 1 million yuan, and hope to reach 10 million yuan in ten years, 100 million in 20 years, and 1 billion in 30 years, then you need to achieve an annualized return rate of 25.89.
7. About covering positions
Suppose you bought 10,000 yuan of a certain currency at 10 yuan, and now it has fallen to 5 yuan. You buy 10,000 yuan again, then the cost of holding in your hands can be reduced to 6.67 yuan at this time, not 7.5 yuan as you imagined.
8. About holding costs
If you have 1 million yuan and invest in a certain currency and make a profit of 10%, when you decide to sell, you can leave chips with a market value of 100,000 yuan, then your holding cost will be zero, and then you can hold it for a long time without any pressure. If you are extremely optimistic about this currency and leave chips with a market value of 200,000 yuan, you will find that your profit will increase from 10% to 100%, but don't be complacent, because if the currency falls by 50% later, you may still lose money.
