The concept of risk and Reward is one that is associated with every investment one is about to partake in. One has to calculate the risk involved in carrying out a transaction or purchasing a particular asset and at the same time be calculate the reward that would be expected in the long run.
In crypto investment, traders tend to apply the ration of risk:reward to assess the expected returns of their investments. For instance, it could be a ration of 2 to 7(2:7) it in turn means that the trader is ready and wholeheartedly willing to risk 2percent of his/her resources, in order to achieve a higher reward and profit of 7peecent. Isn't that smart?
Another viable instance of one can risk investments without considering rewards can be in terms of trusting your funds in a local traditional bank, where you put all your earns in a savings account and you get little interest from the bank. But when it involves crypto, you know that whatever risk you take, you also account for the reward which is a means yo manage your capital and expectations.
Thus, the higher the risk involved in trading or investments, the higher the reward in returns. Also, the lower the risk, the lower the rewards. People who invest high, get high returns and value for the their savings and vice and versa.