#RiskRewardRatio The risk-reward ratio in cryptocurrency trading measures the potential profit of a trade compared to the possible loss. It's calculated by dividing the expected loss (risk) by the expected gain (reward). For example, if you're risking $100 to potentially earn $300, the risk-reward ratio is 1:3. A lower ratio (like 1:2 or 1:3) is preferred, as it means you're risking less to gain more. This helps traders make smarter decisions by only entering trades where potential rewards outweigh the risks. Using proper risk-reward ratios improves long-term profitability and helps manage the unpredictability of the crypto market.