#RiskRewardRatio The concept of Risk and Return is important for any trader who wants to maximize profits while minimizing losses. In the context of cryptocurrencies, volatility is constant in this market, understanding this balance is even more crucial. An example would be a trader who buys Bitcoin at a good entry price, with a well-defined profit target and a stop-loss order to limit losses in the case of adverse movements. A general rule is that a good ratio is generally considered to be 1:2 or 1:3, meaning for every unit of risk, a return of two or three units is expected.