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

In the cryptocurrency market, high returns often come with high risks, but many people focus only 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 set a stop-loss at $800, then your risk-reward ratio is 1:2 (loss of $200 vs profit of $1000).

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