Post
Topic
Board Economics
Re: The Higher the capital the higher the returns
by
m2017
on 18/07/2024, 15:26:15 UTC
From basic economic principles, if you have a higher capital, you will certainly have higher returns compared to starting with a smaller capital.
But the opposite effect also works here: the more capital you operate, the greater the losses in case of an unsuccessful outcome. That is, risks with higher “stakes”.

                                                      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.
REMEMBER
                                                      Investing in bitcoin $1000.  profit on x2-x3  is $2000-$3000
                                                      Investing in altcoin (not all altcoins, but only some) $1000. profit on x5-x10 is $5000-$10,000 (but you are more likely to get a different result - x0)

In the case of cryptocurrencies, this works a little differently.