#RiskRewardRatio The *Risk-Reward Ratio* in crypto refers to the relationship between the potential loss (risk) and the potential gain (reward) in a trade or investment. It helps investors decide if the possible reward justifies the risk they are taking. The formula is:

Risk-Reward Ratio = Potential Loss/Potential Profit

For example, if you risk 10 to make30, the ratio is 1:3. A common ideal is a *1:2 or higher* ratio, meaning the reward is at least double the risk. This helps manage risk and make informed, balanced trading decisions.