#保持SAFU Risk-Reward 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 they can earn" and forget to ask "how much they could lose."

Let's do a simple calculation:

- If you use $1000 to buy a coin, expecting it to rise to $2000 (2 times), but set a stop-loss at $800, then your risk-reward ratio is 1:2 (losing $200 vs earning $1000).

- However, if your stop-loss is set too far, for example at $500 before you cut your losses, then the risk-reward ratio becomes 1:1 (losing $500 vs earning $1000), making it difficult to profit in the long run.