How to make 5 million quickly and steadily in the cryptocurrency world? You must learn how to manage your funds!
Bitcoin and Ethereum! Which one do you prefer?
Basic knowledge of the cryptocurrency world: understanding returns, fluctuations and asset management
In the world of cryptocurrency, it is crucial to understand some basics. Here are some important aspects about returns, ups and downs, and asset management:
1. About income Suppose you have 1 million assets. When your income reaches 100%, your assets will double to 2 million. But if you suffer a 50% loss next, your assets will return to the original 1 million. Obviously, it is much easier to lose 50% than to earn 100%.
2. Regarding the rise and fall, suppose you have 1 million assets, and on the first day it rises by 10%, your assets reach 1.1 million; on the second day it falls by 10%, and your assets remain at 990,000. On the contrary, on the first day it falls by 10%, and on the second day it rises by 10%, your assets remain at 990,000.
3. About volatility Suppose you have 1 million assets. After several years of trading, after ups and downs, the final asset growth is only 5.83%, even lower than the national debt interest rate. This highlights the impact of market volatility on long-term returns.
4. About 1% per day Assuming that you can earn 1% per day, after 250 days, your assets will grow to 1203.2W; after 500 days, it will reach 145 million. This emphasizes the importance of sustained and stable growth to asset accumulation.
5. About 200% per year Assuming that your return rate reaches 200% for five consecutive years, your assets will reach 243 million after five years. However, such high returns are difficult to sustain and need to be treated with caution.
6. About 10 Times in Ten Years If you hope to achieve a 10-fold growth in assets within ten years, you need an annualized rate of return of 25.89%, which requires a high risk tolerance and a precise investment strategy.
7. About covering positions Covering positions can effectively reduce holding costs, but you need to pay attention to market risks and timing of operations to avoid further losses.
8. About holding costs: By flexibly controlling holding costs, you can better grasp the investment rhythm and risks and ensure long-term investment returns.
IX. Asset Portfolio A reasonable allocation of asset portfolio, including risk-free assets and risky assets, can achieve a balance between maximizing returns and minimizing risks. This requires flexible adjustments based on personal risk preferences and market conditions.
In summary, it is crucial for investors to understand and master the basic knowledge of the cryptocurrency circle. Only by building on a solid theoretical foundation and combining practical experience can long-term and stable returns be achieved in the cryptocurrency market.
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