"Now is the best time to invest in bitcoin" Brian Kelly, BK Capital Management

"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," Kelly, portfolio manager of the BKCM Digital Asset Fund.

With uncertainty over the regulatory environment of digital currencies in South Korea and China, Kelly pointed out that cryptocurrency is in a "hand-off" period, moving from retail Asian investors to U.S., European and Japanese institutional investors.

"And that money is still coming in.The flows have not stopped.This is not the end of bitcoin.When we talk about bitcoin being up at $20,000, everyone is running around being all excited. Those are the times to be a little cautious." he said.

Kelly has three golden rules for crypto investors:

1. Only risk 1 percent to 5 percent of assets. - This is a new technology, things break. This is the internet in 1995." With an asset that fluctuates in price so much, the potential for growth is exponential — but so is the loss.

2. Don't sell too soon. - Kelly recommended holding on to the currency, even if it's up 20 percent or 30 percent. "Once there's momentum, you hold onto this thing" he said.

3. Do not panic when coin drops 50 percent. -Understand the volatile nature of digital currency. "These things can move 20 percent to 30 percent in a day"

Source: Bloomberg Pro Terminal

Trader Bozhidar Arabadzhiev

Read more:

• Fake news isn’t just a problem for the public, it’s a problem for algos
• Jim Cramer: “It was all about the rise of the machines.”
• RISE OF THE MACHINES or why automated trading could create problems down the line
• JP. Morgan: The next financial crisis will be Flash Crash
• Robo-adviser Scalable Capital hits $1.2 billion