Investors looking at bitcoin's drop of nearly 50 percent from last month's all-time high above $19,000 should not enter the market for the first time with get-rich-quick aspirations, a cryptocurrency entrepreneur with big-name backers warned on Wednesday.
"If people are going to day trade cryptocurrencies, and they don't know what they are going, they're going to get slaughtered," said Dan Novaes, co-founder and CEO of Current.
His company, whose initial investors include billionaire Mark Cuban, provides an all-in-one platform for popular streaming services such as Spotify and SoundCloud. It also offers users a way to earn cryptocurrency to reduce or eliminate subscription costs.
In addition to running a business based on blockchain, the online ledger technology underlying bitcoin and other digital coins, Novaes said he's an investor who is "long cryptocurrencies."
"I believe in the technology behind it, and we're in the middle of the biggest wealth transfer in history," he said on CNBC's "Squawk Box." "It will develop over the next five to 10 years. I won't put my entire life savings on it … but 1 or 2 percent, whatever, because there's a lot of upside and it will ultimately change our lives."