Yes, investing in bitcoin will certainly not be free from risks. Because in essence there is no investment asset in the world that does not have risk. So we really have to be aware of this and prepare ways to overcome or minimize possible risks that might occur. Just like in Bitcoin, there are many ways to minimize possible risks that might occur. Like
- Study the bitcoin cycle itself.
- Only use cold hard cash to invest(discretionary income).
- Determine a purchasing method that suits your financial situation (such as DCA).
I think with these 3 factors we can minimize the risks that might occur when we invest in bitcoin. Apart from that, talking about DCA, it is true that this purchasing method does not guarantee 100% that we will avoid risks. But this DCA purchasing method only makes us more organized and consistent when buying bitcoin. So basically whatever purchasing strategy is used for bitcoin investment, everything will still have risks. But as I said above, we only minimize it and will never be able to eliminate risk. So the point is to invest according to the risk you are able to face.
Yes i completely agree with you because you have pointed out whats more important for an investor to know if they want to reduce the risk in their investment. The meaning of the term investment cannot be changed. It still remains that there is no investment without risk. What can be done is to mitigate the risk so that we will make profit at the end of the day.
No investment is 100% safe. All have their pros and con. The strategy for an investor to choose all depends on what they want. Whether they want to play it safe by reducing risk or go harder with high risk.