How difficult/challenging is the game?

Game looks interesing and I am thinking about buying it, but I fear that it is way too easy. If fights are just button smashing and everything dies without risk then this might not be the game for me.

In the videos I have seen, this game looks insanely easy. I dont expect dark souls difficulty but some challenge should be there. Is there any risk of dying on normal mobs? How hard are the bosses really after the update?

The system looks very promising in terms of customization and combat evolvement. But if the fights are too easy then the only thing the game offers for me is the exploration aspect as far as I can tell. (I am used to games like dark souls and khazan.)

Is there any way to increase the difficulty? What is your experience?