Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
cryptoWODL
on 05/07/2024, 05:48:58 UTC
From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital. If you're just chasing returns or expecting a huge profit margin but pay slight attention to how much you use as your capital, even when you make a profit, the extent of your profit will largely depend on how much is your Capital.

                                                       REMEMBER
                                                       50% profit on $1000 is $500
                                                         5% profit on $100,000 is $5000
                                                          THE IMPLICATION IS;
Don't chase bigger returns, chase more capital. This is also applicable to How much you invest in Bitcoin and how much profit you can get from it.
It is true that the more capital you have, the more profit you have, but it should also be remembered that the more capital you use in an investment, the more money you will lose if the investment is damaged. Investments are not only profitable but can also incur losses. So invest as much as you can afford to lose.

According to the example you gave,
A 50% loss on $1000 would be a $500 loss.
A 5% loss on $10,000 would be a 5000 loss.