Many people in the crypto world never understand this in their lifetime; shall we do some calculations?

You invest 1 million, rise 100%, become 2 million, but then drop 50%, back to square one.

You invest 1 million, drop 50%, become 500k, then rise 50%, become 750k, magically missing 250k.

Forget these two transactions; it shows that controlling drawdown in trading is always the top priority.

In the practical trading of digital currencies, there are indeed people who can achieve doubled returns in a very short time. However, if we extend the time frame, once a 50% drawdown occurs, previous efforts are almost in vain. Therefore, pursuing short-term high profits is by no means a wise move; only long-term stable returns are the way to survive.

Imagine, you hold a million in funds, and if you can achieve a 25% annual return, after one year, your assets will leap to 1.25 million; two years later, this number will further swell to 1.5625 million; three years later, it will approach 2 million, achieving nearly a doubling of assets. This set of data vividly illustrates the charm of a stable annual return rate, making the path to wealth more robust and enduring. Does it make you realize something?

The reason Buffett is regarded as the stock god is not because he created astonishing results in a short period, but because he maintained an annual return rate of over 20% for more than forty years. Indeed, achieving over 20% profit in the short term is not difficult for many, but being able to sustain it for five years, ten years, or even longer is as rare as a phoenix feather.

Therefore, we need to maintain a calm mind, stay grounded, and firmly believe in the magic of compound interest. It’s like a snowball; over time, it grows larger and larger, ultimately achieving an incredible wealth legend.

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