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by anamax 1523 days ago
An example helps.

Suppose that you're offered an opportunity to bet $10 with a 90% chance of $0 return and 10% chance of $1,000. That's a good bet, especially if you can keep making it. Put $100 at risk and you've got a reasonable chance of ending up with $1000.

Now let's multiply all of the dollars by 1,000. The numbers still work, but how many people can afford to put $100k into 10 bets? There are far more people who can afford to lose $10 than there are people who can afford to lose $10k.

1 comments

This can be applied to buying several good defi project coins, at smaller entry amounts. Investing at smaller amounts is becoming available to those who can not qualify for SEC accredited investor status.