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understanding them early can save you a lot of trouble.
First: The cost of averaging down is not calculated the way you think.
For example: You bought 10,000 at 10, and later it dropped to 5, so you bought another 10,000. Did you think the average cost is 7.5? Actually, it's not; it's 6.67. Because you bought more coins at 5, which lowered the average cost. Don't be fooled by surface numbers; calculate clearly to avoid panic.
Second, earning just 1% daily can still yield tenfold gains in a year.
If you have 100,000 and consistently earn 1% every day, you could end up with 1.32 million after a year of 250 trading days. Sounds like a dream? Just calculate the compound interest. The challenge isn't how to calculate it, but having the discipline to take profits and run.
Third, a success rate of 60% can still yield significant profits.
If you operate 100 times, with 60 profitable trades earning 10% each, and 40 losing trades losing 10% each, you would end up with a net profit of 300%. Sounds simple, but in reality, many people can't even manage to take profits or cut losses, relying solely on luck, and will eventually lose it all.
Fourth: Turning 10,000 into 100 million is theoretically feasible, but don't expect it in reality.
If you earn 10% each time and win 97 times in a row, you can turn 10,000 into 100 million. Sounds appealing, but almost no one can achieve it. Why? Two words: Greed. Most people want to double their gains quickly, but end up losing it all.
Summary
Trading cryptocurrencies relies not only on skills and luck but also on mindset and execution. Prioritize stability, don't fantasize about instant success; only by surviving long enough can you hope to see the rewards of a bull market.