According to Compounding Quality (@QCompounding), the equity premium, defined as the average spread between the return of stocks and government bonds, has consistently ranged from 3% to 3.5% over the past 200 years (source: Twitter, May 15, 2025). For crypto traders, this long-term historical benchmark provides a valuable risk-reward reference point when evaluating the performance and volatility of digital assets compared to traditional financial instruments. Understanding the equity premium can inform portfolio diversification strategies, helping traders assess whether crypto returns sufficiently compensate for higher volatility versus equities and bonds.

According to AltcoinGordon, traders with less than $1 million in liquid assets are considered significantly disadvantaged in the current crypto market climate, underscoring the importance of capital accumulation for effective trading strategies (source: AltcoinGordon on Twitter, May 1, 2025). This perspective reflects a rising trend among crypto influencers emphasizing high liquidity as a prerequisite for navigating volatile altcoin cycles and maximizing trading opportunities.