Billionaire Mike Novogratz reveals the best way to learn about investing in crypto: 'Once you have...'

Mike Novogratz is a longtime cryptocurrency bull and the founder-CEO of Galaxy Digital. (Image credit: LinkedIn)

Mike Novogratz, the billionaire founder and CEO of Galaxy Digital, a digital asset and blockchain company, recently offered a piece of advice to anyone interested in investing in cryptocurrency -- start with 2 to 5 percent of your overall portfolio. You could even aim for around 1 percent, he said at CNBC’s Financial Advisor Summit on Wednesday.

If you want to learn about crypto, you should at least “get off zero,” he added, because it will get you engaged. “Once you have a little bit of an allocation, you start following the story,” Novogratz said. “You learn about things by putting a little money on the line. Then you pay attention to the article, you pay attention to the interview.”

The long-time cryptocurrency bull also said that despite the failure of Silicon Valley Bank in the US, the high price of cryptocurrency gives him "great optimism and confidence." He had even predicted earlier this year that Bitcoin will be "larger than gold" thanks to baby boomers’ trillions.

Supporting Novogratz's views, Brian Vendig, president of MJP Wealth Advisors in Westport, Connecticut told CNBC Make It, “I’d say 1 percent on the more conservative side, and no more than 5 percent of your total portfolio if you’re a growth-focused investor."

Vendig also suggested asking yourself if investing in crypto will help your financial goals. “If an investor can answer that appropriately, then you can actually figure out the sizing you should have,” Vendig says. “Do you want to dip your toe into this asset class? Or is that asset class not even rational for you as an investor?”

Meanwhile, financial planner and founder of Delancey Wealth Management in Washington, Ivory Johnson, also told the publication that allocating around two to three percent of your portfolio to crypto is “more than enough.”

“The more volatile an asset class is, the less of it that you need,” he said.