$BTC

The risk versus return analysis (#RiskRewardRatio) is one of the most important concepts for any trader or investor. It allows evaluating whether it is worth entering a trade, considering how much can be gained compared to how much one is willing to lose. Good risk management generally requires that the risk-reward ratio be at least 1:2. This means that for every dollar risked, the profit target should be two. This practice helps maintain discipline and avoid impulsive decisions. In the world of cryptocurrencies, where volatility is high, this analysis is even more crucial.