Most people would think that the risk is greater than the opportunity.
Let me share my views, which are my own shallow insights.
For example, when you are at work, your absolute risk is your time, and your return is your salary. At this time, time is the least valuable to you, so you sell time to work. Many people think that working has no risk, but in fact, you are betting your time as a risk to earn a salary, because you may not get a salary at all. Your risk is very low, and your return is also very low, low risk, low return. Most people who sell their time work like this, and it's hard to stand out.
The risk in the cryptocurrency circle is losing your principal, but the opportunity is that you may gain returns that are 10 times or even hundreds of times greater than your principal. Although you spend time in the cryptocurrency circle, this time is a passive investment, not an active one. If you don't invest, time still passes, and you can work elsewhere while continuing in the cryptocurrency circle. Therefore, for you, passive time is risk-free, while your principal is at risk.
You will lose 99% of your principal, and your return is only 1%, 100 yuan * 0.99 = 99 yuan, which means you will lose 99 yuan.
Your return is 1%. But this return rate can be 10%, 100%, or 1000%. The answers are 10 yuan, 100 yuan, 1000 yuan.
This is an extreme theoretical calculation.
So can we optimize the risk and take the average return? We can buy a cryptocurrency index, for example, invest in the top 10 by market capitalization weighted by market cap. Buy in batches. Then your probability of making money is basically 75%. Because the cryptocurrency market drops one year and rises three years, as long as you don't mess around, the probability of making money over three years is 75%. Moreover, you can earn 2-3 times or more. This is the return for us regular investors.
Of course, there are various arbitrage returns, but the risks faced include liquidation, wallet theft, exchange exit scams, encountering dirty money, etc.
Let's calculate something, we need to clearly separate risk and return. If the return is obviously greater than the risk, then why not do it, right?
I have finished writing, I wish you wealth in the cryptocurrency circle, I am Aze from the cryptocurrency circle,
Follow Aze's footsteps, believe first then obtain, the team still has spots, take you out of confusion,
Still the same saying, follow the right talent to eat meat, avatar→follow→this is your wealth code.