Inventory of 4 Little-known Facts in the Crypto World: Many People Still Get It Wrong
The crypto world seems simple, but in reality, it is fraught with pitfalls. Here are 4 trading cold facts that 99% of people have fallen into:
1. The cost after averaging down is not a simple average
If you buy with 10,000 USDT at 10 USDT, and then average down with another 10,000 USDT at 5 USDT, many people think the cost is 7.5 USDT.
Actually, the correct calculation is a weighted average:
(10×10000 + 5×10000) ÷ 20000 = 6.67 USDT
Getting the cost wrong will cause problems later in judging profits and losses, and setting stop-loss positions.
2. Earning 1% a day could lead to over 10 million in two years
Assuming you have 100,000 in capital, if you earn just 1% a day and then exit, trading 250 days a year,
after one year it would be 1.32 million, and after two years, over 10 million.
Does it sound unrealistic? Indeed, because very few people can control themselves long-term to "just earn a little and leave." So, the real challenge is not earning, but managing greed.
3. A win rate of 60%, with 10% take profit and stop loss each time, doing 100 trades consecutively results in a profit of 3 times
Setting the rules:
Win rate 60%
Profit each time 10%, loss also 10%
Operate continuously for 100 times
The final result is not break-even, but a return of over 300%.
The key lies in: having strategies and discipline is far more important than frequent gambling.
4. Can contracts make big money? Yes, but you can't control yourself
Someone calculated that with 10,000 USDT and a profit of 10% each time, if you win 49 times in a row, you can reach 1 million USDT.
Continuing, 73 times would be 10 million, and 97 times would exceed 100 million.
But in reality, out of 10,000 traders, it is hard to find even one who can complete this curve.
Why? Because most people lose control after the 5th or even the 3rd profit.
The fundamental reason is: greed + heavy positions + high leverage.
Some truths:
Position management is the most important. In a 10,000 USDT account, I generally only use 2%-5% as the base position, with leverage not exceeding 20 times.
Those who play with 100x or 125x are either gambling their lives or have no trading experience.
Contracts can amplify profits but also amplify human nature. If you can't control it, it will swallow all your capital.
Focusing on trading education and real market analysis, I hope these insights help you avoid detours.
The market is full of temptations, but the truly powerful are always those who can control their emotions.
