The risk-reward ratio of #风险回报比 is the core risk control tool for cryptocurrency investment. Its essence is to quantify the ratio of potential returns to risks, helping investors establish a rational decision-making framework in a highly volatile market. The calculation formula is (Target Price - Entry Price) / (Entry Price - Stop Loss Price). For example, buying BTC at $83,000, with a stop loss at $75,000 and a target at $90,000, gives a risk-reward ratio of 0.875:1, indicating that the risk is greater than the reward, and caution is advised when entering the market.

In the cryptocurrency field, a ratio of 1:2 is a widely recognized safety threshold. When the win rate is 50%, a 1:2 ratio can ensure long-term profitability; if the win rate drops to 40%, the ratio must be increased to above 1:2.5. In practice, the asset characteristics should be dynamically adjusted: mainstream coins like Bitcoin, which have lower volatility, can adopt a conservative strategy of 1:2.5-3; while high-risk assets such as DeFi tokens and meme coins require a more aggressive ratio of above 1:4, while controlling the position to within 5% of total capital.