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Author Topic: The Higher the capital the higher the returns  (Read 440 times)
CryptopreneurBrainboss
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June 29, 2024, 11:18:05 PM
 #61

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.

It's not always about the capital but capital does play an important part in your ROI. Just having the capital isn't enough reason to expect more ROI, your duration of investment also matters and your market entry too because you can't be investing late and be expecting a more return than an investor that entered the market when the market was at its lowest price unless you'll be willing to spend more. Investing in Bitcoin at $30,000 isn't the same thing as investing at $60,000 If both investors had the same capital. The investor buying at the first price would make more profit if both investors are to cashout during the same time.

Investing isn't all about the capital that you have at your disposal because there are certain investors that have the money but lack the knowledge and aren't doing well in the industry. People are losing money frequently when the market takes a dip because people are closing their position without second thoughts. There are things that makes you a successful investors and capital isn't one of the most important because you can have the capital yet you don't know how to use it. Having the right knowledge is what is more important than having capital because a bonus and makes your investments much easier.

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Iranus
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Today at 08:34:17 AM
 #62

Of course, with a larger amount of capital, you will gain more profits, but if you lose, you will also suffer heavier losses, which is obvious because everything is proportional to each other. There is no investment that is both safe and highly profitable and vice versa.
money.

But normally those who have a lot of capital do not risk so much. If you know anyone who works in private banking or investment banking, you will see that the strategies of high net worth individuals are generally more focused on capital preservation than on gaining more capital. With large capital you can live comfortably on income with low risk investments, whereas if you are building your capital it makes sense to risk more, especially if you are young.



I don't deny that and as I said, high profits high risks, low profits low risks. People with large amounts of capital will not be foolish to invest in things that are too risky and too volatile, they will take advantage of their large capital and invest in things with low returns but are safer.

I've also said this many times before and I'm positive that bitcoin is not always everyone's choice. People like us who have little capital but want to get rich will need to take risks and bitcoin is the perfect choice. But for the rich, they have no reason to choose bitcoin and risk their money when they have better options than investing in gold and real estate. That way, they were able to easily make bigger profits than us based on their large capital.

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