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.
1. A retail investors has something called an urgency risk, generally, these people tend to HODL but there could be a situation where these people need money but at that time there is a big slump or bear run going on in the market and this person has no other option than to withdraw money from the market, This is a huge risk that a retail investor carries.
2. An Asset Manager obviously carries the Unsystematic risk, they try to beat the market in the long run but if a person who could have simply held on to his investment and not sold makes a similar return to what an Asset manager gives, this is a complete failure on part of the asset manager.
3. A trader carries the volatility risk in the market, that it's strategy might have become obsolete due to change in the trend of the market therefore no matter what his trading would always result in losses.