$BTC Candid Advice on Trading Cryptocurrencies!

After 8 years of trading cryptocurrencies, I've seen too many people fall into these four traps. Today, I’ll share some hard truths that beginners must read.

First, averaging down is a mathematical trap

If you buy 10 at 10 dollars and then buy 10 at 5 dollars, do you think your average cost is 7.5? Wrong! The true average cost is 6.67. Because you bought more coins at 5 dollars, it directly pulls the average price down. This calculation is best understood by market makers, who wait for retail traders to miscalculate.

Second, compound interest is true profit

With a principal of 100,000, if you make a guaranteed 1% profit daily, you will have 1.32 million in a year. Don’t believe it? Try it yourself with a calculator. The problem is, can you really stop after making 1% every day? I tried for three months and then it fell apart.

Third, a 60% win rate is enough

In 100 trades, if you win 60 times with a 10% gain and lose 40 times with a 10% loss, you will still make a 300% profit in the end. Sounds simple, right? But the reality is that most people want more after making profits, and hold on stubbornly after losses, ending up losing everything.

Fourth, turning 10,000 into 100 million is a fairy tale

In theory, if you make 10% profit every time and win 97 times in a row, you can turn 10,000 into 100 million. But the reality is that 99.99% of people die halfway. Why? Just two words: greed! After making a profit, they want to double it, only to find themselves back to square one overnight.

The cryptocurrency world is a large slaughterhouse of human nature. Those who shout about getting rich every day end up as someone else's ATM. The ones who truly survive are those who can control their impulses.