According to Investopedia, understanding the percentage gains required to recover from trading losses is crucial for risk management in crypto markets. For example, a 20% portfolio loss requires a 25% gain to break even, while a 50% loss demands a 100% gain for full recovery (source: Investopedia, 2024). This asymmetric recovery underscores the importance of stop-loss strategies and disciplined position sizing for crypto traders, especially during high volatility periods. Monitoring drawdowns and calculating necessary recovery gains helps traders optimize risk-reward ratios and prevent irreversible capital erosion.