Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
topbitcoin
on 17/07/2024, 20:25:07 UTC
                                                      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.
If you make a wrong choice as intended, the statement that the higher the capital, the higher the profits, will not apply, both in crypto activities and in other types of activities.
If the sentence applies to this type of crypto activity, then the designation of Bitcoin is appropriate to interpret the sentence. The calculation of the percentage of 50% profit from $1000 is that $500 will be earned even though the Bitcoin market fluctuates, it could be more than $500.
Then this will go back to what the profit target is in its representation, is the percentage or the amount of money you want to get.
I strongly agree with it that we are not looking for a hundred-fold multiplier to get a very large multiplication of money if the capital is large, we will get a large profit if our capital is also large even if the percentage increase is small and that's how it works very well in investing rather than focusing on a high percentage increase.

While it is also true that we need to talk about the opposite, big profits must have big risks, if it is said that the profit can reach $5000 from $100,000 then vice versa if you get a 5% loss of $5000 too and that is a considerable amount, which if a bad mentality will get a very bad loss too if panic selling occurs, this must be considered in the use of large capital, so do not just focus on profits alone without considering the risks that you can accept.