As long as you continue to compound, even if it’s just ten bucks, in the end it can become twenty million.
Many people in the crypto world never understand this, so let’s do the math:
You invest 1 million, it goes up 100%, and becomes 2 million. But if it drops by 50%, you lose it all and go back to the starting point.
You invest 1 million, it drops by 50%, turning into 500k. Then it goes up 50%, turning into 750k. It’s amazing how you’ve lost 250k.
From these two examples, we can see that in crypto, controlling drawdowns is always the most important thing. 0 reply
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