The roller coaster market in digital currency rises and falls rapidly, because digital currency itself does not have a direct connection with the purchase value in real life, so it is only affected by the relationship between market supply and demand. To put it bluntly, most investors believe that value is valuable.

Take bitcoin, which is very hot now, as an example. At this time a year ago, the price of bitcoin should be around 8800 dollars. A year later, the price of bitcoin rose to around $50,000. Three months ago, the price of bitcoin did not exceed $20,000. Three months later, the current price is 50 thousand dollars. It rose to $57,000 at the peak of the previous period. This price increase completely exceeds the increase of the stock market and normal funds. Because it is a virtual currency, its price may rise rapidly in a short time, but it may also fall rapidly in a short time, resulting in a cliff-like price drop.

Digital currency's investment risk is very high, because digital currency itself is only affected by the market supply and demand. It's not like we are influenced by the operation of this enterprise when we buy stocks. If the management is good and there is great good news, then the stock will naturally rise rapidly, and the price of poor management will fall. But what about bitcoin? No business operation will affect him. More people in the market will lead to an increase in prices, and more people selling him will lead to a decrease in prices, which should be the most direct.

For ordinary retail investors, investing in bitcoin is not a good choice, because the price of bitcoin has gradually approached the price of 400,000 to 400,000. Can you guarantee that its price will not fall back to $20,000 after three months? Your loss rate was 50% at that time, but it was normal. You put this money into the stock market. If your eyes are not particularly bad, it is difficult to lose 50% or more. Buying a fund has lowered the net value by 6%, which is a big drop. So bitcoin is destined to be something that ordinary retail investors can't afford, and you can't afford such a high risk.

Bitcoin can make a person rich overnight. If you buy Bitcoin a year ago or five years ago, the value will be far more than doubled. You will soon realize wealth freedom, but now is not a good time for you to buy again. No one can guarantee what good news or bad news will appear in the future bitcoin market. If a big investor has good news, his price may exceed 60 thousand dollars. If not, he may fall back to $40,000.