#风险回报比 Risk-Return Ratio: Is Your Trade Worth the Risk?

In the cryptocurrency market, high returns often come with high risks, but many people only focus on 'how much can I earn' and forget to ask 'how much can I lose'.

Let's do a simple calculation:

- If you buy a coin for $1000, expecting it to rise to $2000 (2x), but you set a stop loss at $800, then your risk-return ratio is 1:2 (lose $200 vs earn $1000).

- However, if you set your stop loss too far, such as at $500 before cutting losses, the risk-return ratio changes to 1:1 (lose $500 vs earn $1000), making it difficult to be profitable in the long run.