Top 5 Investment Tips from Billionaire Investor Michael Novogratz
There are innumerable individuals who want to invest in Bitcoins and other cryptocurrencies. However, one common problem, which they face, is a lack of guidance. As a time when exchanges and trading platforms are interested in just getting deposits, it is important that we understand the right strategies and techniques of investing.
In this article, we look at some of the top investment strategies and tips are given by legendary billionaire investor Michael Novogratz. If you or someone you know is looking to invest in cryptocurrencies, this article is going to help you in a major way.
Before we begin, let us first look at the man himself, Michael Novogratz.
Who is Michael Novogratz?
Billionaire Hedge-Fund Manager, Michael Novogratz has been watching the Bitcoin space closely for the last decade. With a net worth exceeding a billion dollars, Novogratz is one of the most widely respected financial experts in the world.
Bullish on the Bitcoin run, he founded Galaxy Digital Holdings, an investment firm. The firm helps retail and institutional investors invest in crypto-backed businesses and Blockchain technology.
Novogratz has been very public about his admiration of cryptocurrencies. He has frequently come on prime time television on CNBC and other channels and spoken about the immense potential of cryptocurrencies and its related technologies.
Top 5 Crypto Investment Strategies by Michael Novogratz: The List
1. Long-Term Investments and Growth-
Novogratz is categorical when he states that investing in cryptocurrencies should be done for a long time. This means that he is against short selling and prefers investors to hold on to their assets for a longer period.
According to Novogratz, Bitcoin and other cryptocurrencies need to be given a handsome amount of time to prove their effects in real-world scenarios. This is why he calls upon investors to exercise restraint when it comes to selling decisions.
2. Bitcoin and Gold are a solid Hedge against Inflation-
In this past interview, Novogratz has been vocal about his displeasure of the US government's decision of printing more money to help with the pandemic. He states that this is going to lead to a situation of hyperinflation and string devaluation of the US dollar.
He has asked people who follow him to stock up on as much Gold and Bitcoins as possible to help them create a sure-footed hedge against inflation. Investing in crypto will help people hold value of assets.
3. 2020 and 2021 will be a Big Year for Bitcoin-
Michael Novogratz states that Bitcoin and Blockchain tech is still in its early years. However, he also states that 2020 and 2021 will be the breakout years for Bitcoin. He also predicts that the valuation is likely to cross the $40K mark in early 2021.
This is why he feels that it is a great time for people, who have been sitting on the sidelines. Novogratz also states that Bitcoin is going to witness a bull run unlike any other at the end of the year.
4. Institutional Investors will lead the way for Retail Investors-
Having himself been a pioneer on Wall Street, Michael Novogratz feels that it would be the institutions again who will take the lead. This means investment firms are likely to suggest crypto stocks to their clients.
Even after Novogratz had mentioned this sometime in 2017, the same is coming true in 2020. Most Wall Street firms are asking their clients to diversify their portfolio and include Bitcoins and Gold.
5. Patience is the Key in Crypto Investments-
Michael Novogratz states that the crypto ecosystem suffers from high instability. This makes the volatile nature of the asset, a shaky and non-surefooted one. While this may prevent many from investing in cryptocurrencies, Novogratz feels that it is time to use the instability to your advantage.
He says that investing and being patient is a good way to check the instability of the assets. Over a long period, almost everyone agrees that Bitcoin is going to grow astronomically.
Leading Bitcoin and Crypto blogs like all in 1 bitcoins state that investing in Bitcoins can be both very challenging as well as highly rewarding. The important thing is to be aware of everything, which is happening in the crypto ecosystem for best and guaranteed results.