Mad Money’s host, Jim Cramer, has some advice for cryptocurrency investors. “I would never discourage you from buying crypto,” he said, adding that he himself owns Ethereum.
Jim Cramer’s Advice on Crypto Investing
Mad Money host Jim Cramer offered some advice about cryptocurrency investing on CNBC Make It Wednesday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.
“I think crypto should be part of an individual’s diversified portfolio,” he began, elaborating:
I can’t tell you that you don’t own crypto. I own crypto. I am the owner of Ethereum.
He explained that he bought ether (ETH) because he wanted to buy non-fungible tokens (NFTs) for a charity. “But, they won’t let me do dollars,” he said. “I had to buy it on Ethereum, so I researched it, and it has some qualities that I love: lacking value, not so hot – so to speak – as bitcoin (BTC). So, I bought it. “
Noting that crypto is speculative, he said it is okay to invest in speculative assets. However, he insisted, “You have to admit it’s speculative,” emphasizing: “Don’t put this in a Procter & Gamble class. It’s not Coca-Cola. It’s not Apple.”
He further said that since crypto has come, he is recommending to put 5% portfolio in crypto and 5% in gold instead of putting 10% in gold.
Although he admitted that he has no idea what the value of crypto would be, he acknowledged that many people have made fortunes with crypto. “You have every right to try to make money in crypto,” he said:
I would prefer you do it in ethereum or bitcoin, which have the biggest followings… I would be careful.
Cramer further warned that investors should not borrow money to buy crypto. “Borrow for your house, borrow for your car – but don’t borrow for crypto,” the Mad Money host concluded by emphasizing:
I would never discourage you from buying crypto because all the wealth out there is built in, and how it can make a fortune to a new group of people… I want you to be.
What do you think of Jim Cramer’s comments? Let us know in the comments section below.
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