Recently, the cryptocurrency market has been extremely volatile, and the risk-return ratio has become the focus of investors. For instance, the price of Bitcoin dropped below $80,000 in the past week but surged due to news that Trump would include various cryptocurrencies in reserves. Market participants point out that cryptocurrencies have poor liquidity, strong speculation, and imperfect mechanisms, which makes them riskier and their returns harder to predict compared to traditional financial assets.

In the current environment, investors should fully consider the risk-return ratio. They can refer to indicators such as Average True Range (ATR) to assess risk, and reasonably allocate funds based on investment goals and risk tolerance. For example, setting stop-loss levels to control potential losses can help avoid significant losses due to substantial market fluctuations.