In the crypto world, the most important thing is to protect your principal
Thousands or tens of thousands only exist in forgetfulness
Thousands or tens of thousands only exist in forgetfulness
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挖矿的小羊
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【“Not losing money” is more important than “making money”: Analyzing the gambling truth of ROBO from a mathematical perspective】
In the world of investment, there is a cruel mathematical formula that everyone entering should memorize:
Buying ETH at 10000, if it drops by 10%, it needs to rise by 11% to break even; if it drops by 30%, it needs to rise by 43% to break even; if it drops by 50%, it needs to rise by 100% to break even. Conversely, if it rises by 10%, it only needs to drop by 9% to return to the starting point, while a rise of 100% only requires a drop of 50% to lose all gains.
Protecting the principal is the primary responsibility of investment, because it is easy to fall but difficult to climb back. This mathematical asymmetry tells us that when you cannot see the underlying logic of a project, blindly entering is not only about betting on profits but also about overextending your ability to recover your principal.
Buying ETH at 10000, if it drops by 10%, it needs to rise by 11% to break even; if it drops by 30%, it needs to rise by 43% to break even; if it drops by 50%, it needs to rise by 100% to break even. Conversely, if it rises by 10%, it only needs to drop by 9% to return to the starting point, while a rise of 100% only requires a drop of 50% to lose all gains.
Protecting the principal is the primary responsibility of investment, because it is easy to fall but difficult to climb back. This mathematical asymmetry tells us that when you cannot see the underlying logic of a project, blindly entering is not only about betting on profits but also about overextending your ability to recover your principal.
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