I just wanted to know that,what amount of risk is there in investing in bitcoins.
Right now i am planning to buy btc approx 3-4 btc and just hold them as i guess the price of bitcoin will increase in future and i will get some good profit.But i want to know what is the risk involved.Can bitcoin price decrease and is this right time to buy the bitcoin.
Let me tell you that, there are risks involved with every kind of investment which are market linked. So even if you invest in market linked insurance or mutual fund, there is risk. But bitcoin, being a decentralized currency with no regulator carries a bit more risk than any other regulated investment instrument. But if you look back at the bitcoin historical price, you will see that long term investment in bitcoin was immensely profitable for all.
So if you are planning to hold your bitcoin for long time like 2-3 years, go ahead and buy it. But if you planning for a shorter term, then I would suggest you to use SIP method. This way, you will buy little amounts of bitcoin at a certain pre-decided interval. This way you can average out the price and minimize the risk.