What is drawdown?Drawdown
How far an account has fallen from its peak; the deeper the drawdown, the harder it is to recover.
Animation · drawdown
Learn “drawdown” in an animated lesson
- Crypto BasicsHigh Volatility and Position Sizing
Daily moves of 10% are common in crypto. See how high volatility magnifies drawdowns, and why position size matters.
- Risk Management & Trading PsychologyDrawdowns Are Lopsided: Lose 50%, Need 100%
Going from $100 to $50 is a 50% loss, but getting from $50 back to $100 takes a 100% gain. The deeper the loss, the harder the climb out.
Related terms
See how “drawdown” works for yourself with an animation you can drag and play.
Go to “High Volatility and Position Sizing”