I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.
There are risks in every investment or any venture in life. The point is to minimize and mitigate risks.
1. As a retail investor
A retail investor is looking for quick earnings through profit from price variations. They will face risks of price volatility, but this can be minimized by entering at a lower price than the market price.
2. As an asset manager (hedge fund business)
An asset manager manages the assets of another business. They are not directly owning those assets but is paid separately. Even if the assets drop in price they will be paid what they always are. However they have to diversify portfolios in order to weigh out low performing assets and weigh in high performing assets. This is not as easy as it sounds.
3. As a trader.
1 and 3 are more or less same. But talking about day traders, they face more risks than a retail investor and market volatility is more in day trading/short term than long term.