🔄 The essence of compound interest: Making fewer mistakes is how you make money.

The critical line for account management is drawdown control. Setting a 15% drawdown limit, while Bitcoin's historical maximum drawdown has reached 50%, yet most retail investors in the market have experienced losses of over 70%. This is no coincidence.

💡 The truth is actually quite harsh: compound interest is never about who earns more, but about who loses less.

Suppose someone doubles their position in four consecutive waves—earning 100% in the 1st wave, 100% in the 2nd, 100% in the 3rd, and 100% in the 4th—then their principal becomes 16 times larger. Mathematically perfect. But in reality?

Someone earns 100% in the first wave, then loses 50% in the second, returning to the original amount. Others earn 200% in the first wave, then get wiped out to zero in the second. One wrong decision, and all previous efforts are instantly wiped out.

🌟 The hardest lesson in crypto: holding on is 10 times harder than making money.

If there is a single killer of compound interest, it’s making a big mistake. First, you need to distinguish what constitutes a big mistake and what doesn’t.

Missing out on a trade isn’t a big mistake—it’s just earning less, with no loss of principal. Making a wrong stop-loss isn’t a big mistake either—there’s still a chance to recover after a small loss. Missing hot spots isn’t either—the market will always have the next opportunity.

The real big mistake looks like this: high leverage + holding through a move + ultimately getting liquidated. You might be right 100 or 1,000 times, but as soon as you make this big mistake at a critical moment, all your previous correct decisions are wiped out instantly.

Here’s a bloody example: someone made 5 million in the 2021 bull market, but in 2022, due to holding on in futures contracts, they got liquidated and owed 500,000. It’s not compound interest being interrupted; it’s being completely destroyed.

📊 The truth of compound interest is in its imperfection.

There are 10 major market moves ahead. How do experts handle them? Missing 5 doesn’t matter. Making 2 mistakes but stopping losses in time—just small losses. Only catching 3 double-up opportunities—that’s enough. The result? 1 million turns into 8 million, an 8x return.

Most people? They catch 7 out of 10 moves, which looks impressive. But as soon as they make one big mistake—liquidation or huge loss—they return to zero and fall into a cycle.

The key difference: top traders are never winning every time, but they never let their principal be wiped out.

🧠 Warren Buffett’s Lesson

The world’s top investors earn about 20% annually. It doesn’t sound like much, but they’ve persisted for 60 years. The result? They become some of the wealthiest people in the world.

His core secrets are just three: never make permanent big mistakes, correct small mistakes and stop losses promptly, and live long enough for compound interest to truly work.

⚡ The Fast and Slow in Crypto

Retail investors often dream of 100x returns in a year, but most of these players don’t last a year. Top traders aim for steady gains of 100% per year—doubling every year, eightfold in three years, a thousandfold in ten.

In the world of compound interest, the turtle always beats the hare. Those who jump in with the mindset of overnight riches are often the quickest to be harvested in the market. Those who seem slow but steadily hold their principal, control risk, and keep accumulating are the ones who ultimately go the farthest.