Three golden rules for Bitcoin investors

The Bitcoin has fell since the beginning of the year, which provoked a number of opinions that the end of the bubble in the crypto. However, this opinion is not shared at all.

People watching the market need to invest in Bitcoin now because prices are low, says BK Capital Management founder Brian Kelly, quoted by CNBC.

"Now, when everyone says," It's over, it's dead, the 175th time is the time to look at it on the buyer's side, "Kelly says.

According to him, against the backdrop of the uncertainty surrounding the on-going regulation of the market in China and South Korea, crypto is in a period of lull, making a transition from ordinary investors in Asia to institutional investors in the United States, Europe, and Japan.

"And that money goes on. The streams have not stopped, "says the expert.

"This is not the end of the Bitcoin," Kelly said, warning that investing in extremely volatile assets is at high risk and may be dangerous.

"When we talked about how the Bitcoin rise to nearly $ 20,000, everyone was excited about it. These are the times in which one has to be a little more cautious, "he says.

The cost of a Bitcoin ranged from $ 10,000 to $ 11,000 in the last week and did not even approach a historic maximum of nearly $ 20,000 that was achieved in mid-December last year.

As a result of the 45% drop in the price of the virtual currency, a number of experts have expressed concern that the Bitcoin bubble really does. But Brian Kelley is not among them. According to him, fallen prices are "incredibly healthy for the ecosystem".

When it comes to investing in crypto, Kelly has built three simple rules that follow:

1. Only risk between 1% and 5% of your assets

"This is a new technology. Things are changing. This is the Internet in 1995, "says Kelly. When we talk about an asset that changes its price so quickly, the growth potential is huge.

The same is true of the level of possible losses. If the investment does not grow well, the losses on a retail investment can easily be absorbed, Kelly says.

2. Do not sell too early

The expert advises you to keep your cryptos, even when they record a 20 or 30% increase in price. "When there is a moment of movement, stay in your position," he says.

3. Do not panic when your cryptos gets cheaper by 50%

Understand the volatile nature of virtual currencies. "These things can change the price by 20 to 30% per day," the expert added.

image source - Instagram