Understanding Risk-Reward Ratio Easily in Crypto Trading

For beginners trading crypto $ADA or other assets, understanding the Risk-Reward Ratio is crucial. It's a comparison of how much we risk (X baht) versus how much profit we expect to gain (Y baht), which should always be greater than 1. For example, if you risk 0.001 $ADA to gain 0.003 $ADA, the R:R is 1:3.

Consider $ADA at 0.1654. If you enter here and set a Stop Loss at 0.16463 (risking 0.00077) and a Take Profit at 0.16632 (hoping for 0.0008 profit), the R:R is only about 1:1.04. This isn't very worthwhile. If you do this often, your portfolio will eventually fail. It's better to find setups with a better R:R.