As a new investor in the crypto assets market, I encountered a confusing situation. When I invested 100U in a token that had risen by 730%, my funds only increased to around 160U when the rise reached 1900%. This is far from the returns I expected.
What confuses me even more is that sometimes I clearly see the market price rising, but the value of my assets continues to decrease. I originally thought that if the price rises by 100%, my investment should also increase by 100%, but the actual situation seems to be otherwise.
What exactly is the phenomenon where the price rise does not match the actual returns? Is it a problem with the calculation method, or are there other market mechanisms affecting the actual returns? I hope experienced investors can provide answers to help me understand these basic issues in Crypto Assets investment.
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As a new investor in the crypto assets market, I encountered a confusing situation. When I invested 100U in a token that had risen by 730%, my funds only increased to around 160U when the rise reached 1900%. This is far from the returns I expected.
What confuses me even more is that sometimes I clearly see the market price rising, but the value of my assets continues to decrease. I originally thought that if the price rises by 100%, my investment should also increase by 100%, but the actual situation seems to be otherwise.
What exactly is the phenomenon where the price rise does not match the actual returns? Is it a problem with the calculation method, or are there other market mechanisms affecting the actual returns? I hope experienced investors can provide answers to help me understand these basic issues in Crypto Assets investment.