I have seen there whatever has a huge upside also has a huge downside. This is the case with crypto currency, including bitcoin.
Can we point out the risks that one faces in investing crypto assets based on these:
1. As a retail investor
2. As an asset manager (hedge fund business)
3. As a trader.
My answer is in 3 things you if all things are equally risky. because in this cryptocurrency market it is very volatile and disappears maybe overnight you wake up that coin has disappeared or is dead no longer active. This is no one can predict that the risk is inevitable. The first thing we should do is to minimize our own risk and learn how to properly manage our investment capital, gain experience and knowledge about the crypto market.
We can search for many lessons about how to minimize the risk in crypto and deal with the volatility, but we need to learn how to do that. The risk will be there in any investment type, not just in crypto, so if we can manage the risk not to become bigger, we will not have any problem using crypto. Besides that, we need to know how much money we will invest in crypto so we do not lose much money.