š„ Big Crypto Drop, Then Big Pump? You Could STILL Be Down! š„
Ever seen your crypto crash, then shoot back up? You might think you're good, but hold on! A big "bounce" doesn't always mean you've made your money back.
š Let's Look at a Simple Example!
Imagine you started with $100 in a crypto coin.
* If it drops by 60%, you now only have $40 left. Ouch!
* Now, if that $40 goes up by 60%, you'll only have $64.
* That means you're still missing $36 from your original $100! You haven't broken even.
š§ Why Does This Happen? (It's Easy Math!)
It's all about what the percentage is based on:
* When you lose, the percentage is on your bigger starting amount.
* When you gain, the percentage is on your smaller current amount.
So, to get back to your starting point, you need a much bigger gain than your loss!
* Lost 50%? You need to double (100% gain) your money.
* Lost 60%? You need a 150% gain!
* Lost 70%? You need a huge 233% gain!
ā ļø Key Lesson for Crypto Traders!
Don't just jump into a coin because it's rising fast after a big fall. Always do the quick math! A coin can bounce significantly, but you might still be far from recovering your initial investment. Always calculate how much the price really needs to increase for you to break even before you trade.
š£ļø Your Turn!
š Has a crypto you owned ever "bounced" but you were still losing money? How much did it actually need to go up for you to break even? Share your experiences below!
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