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.
As a retail investor, the biggest risk is that you know when to invest and for how long you can invest. If you are investing for short term, then there is a risk that prices may be down when you need to cash out.
As a trader, you should understand the different types of trading which include spot and futures trading. Your account can be completely washed out if you are not careful and do not follow the TA with money management.