Understanding Risk-Reward Ratio Easily in Crypto Market

For beginners unfamiliar with the Risk-Reward Ratio (RRR) principle, it's the proportion between the money you risk losing (Risk) versus the money you expect to gain (Reward) in each trade. If you buy $BTC at 60,000 and intend to sell for profit at 63,000 with a Stop-Loss at 59,000, it means you risk 1,000 (60,000-59,000) for a potential profit of 3,000 (63,000-60,000). Thus, your RRR is 1:3, which is considered very good. We should generally aim for trades with an RRR of at least 1:2 or higher, because even if you win only 50% of the time, you will still make a profit in the long run. However, accurately finding these levels requires experience and careful chart analysis, not just guesswork.