According to Compounding Quality (@QCompounding), the 80/20 Principle highlights that in financial markets, including cryptocurrency trading, roughly 80% of trading profits typically come from 20% of the trades or assets, as illustrated in their June 18, 2025 post (source: Twitter). For crypto traders, applying this Pareto analysis means focusing on top-performing coins and trading strategies can significantly enhance portfolio returns and efficiency. This approach can help traders allocate capital more effectively, reduce trading noise, and concentrate risk management on assets like BTC and ETH with historically proven performance.