Many people in the crypto world spend their lives not understanding this; shall we do the math?

You invest 1 million, rise by 100%, it becomes 2 million, but then drops by 50%, returning to square one.

You invest 1 million, drop by 50%, it becomes 500,000, then rises by 50%, becoming 750,000, mysteriously losing 250,000.

Forget these two examples; they illustrate that controlling drawdowns in trading cryptocurrencies is always the top priority.

In the practical world of cryptocurrency trading, there are indeed people who can achieve doubling profits in a very short time. However, if we extend the timeline, once faced with a 50% drawdown, previous efforts are almost rendered futile. Therefore, pursuing short-term high profits is by no means a wise move; only long-term stable returns are the way to survive.

Imagine, you hold a million in funds, if you can achieve a 25% annual return, after one year, your assets will jump to 1.25 million; after two years, this number will further swell to 1.5625 million; after three years, it will approach the 2 million mark, achieving almost a doubling of assets. This set of data vividly illustrates the charm of a stable annualized return rate, making the path to wealth more robust and lasting. Does this make you realize something?

Warren Buffett is revered as a stock god not because he created astonishing results in a short time, but because he maintained an annualized return rate of over 20% for more than forty years. Indeed, achieving over 20% profit in the short term is not difficult for many, but being able to sustain it for five years, ten years, or even longer is as rare as a phoenix feather.

Therefore, we must maintain a calm heart, stay grounded, and steadfastly believe in the magic of compound interest. It is like a snowball, which grows larger over time, ultimately achieving an astonishing wealth legend.

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