Risk to reward ratio

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10 Jul 2022
56
What is Risk:

In crypto currency, risk can be defined as a decision that could cause our whole portfolio being wiped. In most cases, it is something really dangerous and portfolio threatening.

What is reward:

This is the benefit attached to making a particular decision especially when it involves making profits.

Risk to reward ratio?

This is term that compares a risk to the possible reward that would be the outcome of the risk taken.
Most times, people put everything at stake and just go all in, like wow🥺🥺

In most cases, people make such irrational decisions when the reward looks pretty good, something that could change a life for a lifetime.

But is this healthy?

Some risks can be life threatening and not just portfolio threatening, of a person loses everything due to some harsh decision they had to take, it could lead to suicide or causing oneself harm.

In as much as we take risk daily, lets ensure to manage our risk properly, to avoid getting rekt.



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