In an interview with CNBC, BK Capital Management founder Brian Kelly said that those looking to invest in Bitcoin should consider the opportunity now when the prices are low.
He said "Now, when everyone is saying ... it's over, that's it, bitcoin is dead, for the 175th time. Now's the time you start looking at it, on the buy side."
He further explained that it cannot be the end for Bitcoin as the inflows have not stopped. Investing when the rates are high is dangerous as the currency is highly volatile.
The prices have been revolving between $10,000 and $11,000 but it far from regaining its all-time high mark that it reached last year.
He advises investors to:
- Only risk 1% to 5% of your assets as Bitcoin is based on a fairly new technology (like the Internet in its initial years) that has the potential to grow exponentially or bring excess loss. It could go both ways, so make sure you can absorb the losses if it so happens.
- Hold on to the currency for some time. Do not sell too soon if it goes up by 20 or 30%.
- Do not panic when the price drops by as much as 50%. Bitcoin prices are so volatile, they can recover by 20-30% in a day.