In the world of crypto trading, understanding the concept of Risk Reward Ratio is essential for operating with awareness. This ratio measures the potential gain against the risk of loss in a given trade. For example, if you are willing to risk €100 to earn €300, you have a risk/reward ratio of 1:3. Using this metric allows you to set stronger strategies and avoid impulsive decisions. It's not just about winning often, but about earning more when you win compared to how much you lose when things go wrong.
