#RiskRewardRatio The risk-reward ratio is a key concept in the world of investments and trading, especially in cryptocurrencies. This metric helps investors assess whether a trade is worth it based on the risk taken versus the potential gain. It is calculated by dividing the amount an investor could lose (risk) by the amount they expect to gain (reward). For example, a 1:3 ratio indicates that for every unit of risk, there is a potential gain of three. Understanding and correctly applying the risk-reward ratio allows for more rational decision-making, minimizes losses, and optimizes long-term investment strategies.