#JCT Traditional industries attract many investments, and what they pursue is relatively stable annualized returns of 5%—10%. Meanwhile, the biggest feature of the crypto market is that both returns and volatility are amplified.
In a year, you might only see a few dozen percentage points, or you might achieve several times or even higher returns—but just as possibly, you could experience massive drawdowns, even to zero.
So when I look at the crypto market, I never compare it to traditional investments in terms of stability. I look at its odds.
High returns are never free; behind them there is always high risk. What truly matters is using money you can afford to lose to take on the level of risk you can bear.
In a year, you might only see a few dozen percentage points, or you might achieve several times or even higher returns—but just as possibly, you could experience massive drawdowns, even to zero.
So when I look at the crypto market, I never compare it to traditional investments in terms of stability. I look at its odds.
High returns are never free; behind them there is always high risk. What truly matters is using money you can afford to lose to take on the level of risk you can bear.