$BTC can also be risky. One way to manage risk is to use the risk-to-reward ratio, which is the potential profit to the potential loss.

2/ A risk-to-reward ratio of 1:2 means that for every dollar you risk, you expect to make a profit of two dollars. This means you are only risking half of your potential return, which helps protect your capital.

3/ A risk-to-reward ratio of 1:3 or higher is best, as it means you only need to be right about one-third of the time to make a profit. This can help reduce stress and anxiety.