(1) I agree with the previous poster.
Do not commit all your funds to bitcoin. Decide on a percentage.
Diversify.
(2) Even for the portion you commit to bitcoin,
spread the investment depending on your investment horizon & risk/return appetite. All investments carry risk - you need to balance that risk/return profile.
For bitcoin investments, you can consider
3 different strategies e.g.
(1) High risk, high return
short-term trading strategy ("buy low, sell high"): But can you read the market well enough to generate the best trading strategy? For every buyer of a coin, there is a seller, so who is doing it wrong?
(2) Moderate risk, moderate return
portfolio investment strategy e.g. Keza (
http://www.getkeza.com) as an investment platform. But you need to invest time in selecting the right investment portfolios based on the composition, underlying beta and future outlook.
(3) Low risk, low return
secured lending strategy (collateralised lending). But need to vet borrowers based on past track record too.
I would avoid HYIP, Ponzi schemes, and grandiose promises.
http://themerkle.com/bitcoin-investment-startup-keza-unveils-ios-beta-app/https://www.producthunt.com/tech/kezahttp://getkeza.com/ (It's free to apply for a Keza account)