Dear reader friends, if you plan to treat cryptocurrency trading as a second career in the coming years, here are 10 rules of experience I have summarized, hoping to provide you with some insights.

First, understand the relationship between risk and return. Suppose you have 1 million, after earning 100%, your assets reach 2 million, but if you then lose 50%, you are back to 1 million. It is evident that losing 50% is easier to achieve than earning 100%.

Second, short-term fluctuations can easily affect asset appreciation. If you have 1 million, after a 10% increase on the first day, it reaches 1.1 million, but if it then drops 10% the next day, the assets will decrease to 990,000. Conversely, if there is a 10% drop on the first day and a 10% increase on the second day, the assets will still be 990,000.

Moreover, in the long run, returns may not be satisfying. If you have 1 million and earn 40% for several consecutive years and then lose 20%, after 6 years your assets will only be 1.405 million, with an annualized return rate of only 5.83%, even lower than a five-year fixed deposit at a bank.

Of course, if you can insist on a daily return rate of 1%, that would be impressive. After 250 days, your assets could reach 12.032 million, and after 500 days, 145 million. However, this is not very realistic.

Additionally, high returns are usually difficult to sustain. If you have 1 million and achieve a 200% return for 5 consecutive years, after 5 years your assets would reach 243 million. But such high returns are almost impossible to maintain consistently.

To achieve long-term wealth, you need to focus on an annualized return rate of 25.89%. This way, after 10 years your assets will reach 10 million, after 20 years 100 million, and after 30 years 1 billion. However, this is out of reach for most people.

Furthermore, controlling costs reasonably is also very important. If you first buy 10,000 with a cost of 10, and then buy another 10,000, the cost is averaged to 6.67, instead of the imagined 7.5.

Timely profit-taking after buying is also crucial. If you hold 1 million and sell 10% for a profit of 100,000, the remaining 900,000's cost becomes zero, and you can hold it without pressure moving forward.

Moreover, if you are confident in a certain currency, you can keep 20% of the chips, and then the original 10% return rate doubles to 100%. However, this approach also carries risks; if it drops by 50%, you could still incur losses.

Finally, observing the performance of currencies during a market crash is also very meaningful. If the overall market crashes but your currency only drops slightly, it may indicate that the market makers are protecting it, and such currencies can be held with confidence, potentially yielding good returns.

In summary, cryptocurrency trading requires caution; I hope these experiences inspire you. Wishing you success!#ETH市场新动向 #比特币突破10万？ #ETH市场新动向