Market watchers should invest in bitcoin now when prices are down, BK Capital Management founder Brian Kelly said in a statement.
"Now, when everyone says it's over, that's it, bitcoin is dead, for the 175th. Now is the time to start looking at it, on the buy side," Kelly, portfolio manager of BKCM Digital Asset Fund, said CNBC on Tuesday (23 / 1/2018).
With uncertainty about the regulatory environment of digital currencies in South Korea and China, Kelly points out that cryptocurrency is in the "handoff" period, moving from Asian retail investors to institutional investors in the US and Europe.
"And the money is still in," he said.
"The current does not stop," he added.
"This is not the end of bitcoin," Kelly said, warning investors that buying assets is very volatile when high prices can be dangerous.
"When we talk about bitcoin that could rise by $ 20,000, everyone runs into excitement, that's when we are a bit cautious," he said.
Bitcoin prices remained stagnant between $ 10,000 and $ 11,000 for the last week, not recovering from a high of $ 19,500 in mid-December. A 45 percent drop in value makes some market experts worry that bitcoin bubbles may have exploded for good.
However, Kelly says that the price drop is "very healthy for the ecosystem, you shake the weak hand, you get a strong hand there," he said.
Kelly has three important rules for cryptocurrency investors:
1 Take only 1 percent to 5 percent of assets.
"This is a new technology," Kelly said.
"Things are disconnected.This is the Internet in 1995, with assets that fluctuate in so much price, the potential for growth is exponential, but so is the loss.If the investment is not successful, the losses can be easily absorbed, Kelly said.
2 Do not sell too fast.
Kelly recommends maintaining the currency, though the number is up 20 percent or 30 percent. "Once there is momentum, you hold this thing," he said.
3 Do not panic when the coins drop 50 percent.
Understand the nature of the volatility of digital currencies. "It can move 20 percent to 30 percent in a day," he concluded.
