#RiskRewardRatio trading is a key metric that helps traders evaluate the potential return of an investment compared to the risk involved. It is calculated by dividing the expected profit by the possible loss. For example, a 1:3 risk-reward ratio means risking $1 to potentially gain $3. In the highly volatile crypto market, using a favorable risk-reward ratio helps traders make smarter decisions, control losses, and maximize gains. It also encourages disciplined trading by focusing on setups that offer higher rewards than risks. Proper use of this ratio is essential for long-term success and portfolio growth in crypto trading.