Mad Money host Jim Cramer has some advice for cryptocurrency investors.” I would never be discouraged 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 on cryptocurrency investing on CNBC Make It Wednesday. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy site.
“I think crypto should be part of a person’s diversified portfolio,” he began, elaborating.
I can’t tell you not to own crypto. I own crypto. I own ethereum.
He explained that he bought Ether (ETH) because he wanted to buy a non-ghost token (NFT) for charity.” But they wouldn’t let me do dollars.” He noted.” I researched it because I had to buy it in Ethereum and it has some qualities I like: scarcity value, not as hot as Bitcoin (28} BTC) – so to speak. So I bought it.”
Pointing out that crypto is speculative, he said he has no problem investing in speculative assets. However, he stressed, “You have to admit that it is speculative,” adding, “Don’t put it in the class of procter&Do not put it in the class of Procter Gamble. It’s not Coca-Cola. It’s not Apple.”
He also pointed out that since crypto was introduced, he has recommended putting 5% of the portfolio in crypto and 5% in gold, rather than 10% in gold.
He admitted that he has no idea what the value of crypto will be, but acknowledged that many people are making a fortune in crypto.” You have every right to try to make money in crypto,” he said, adding.
I would prefer to do it with Ethereum or Bitcoin where you have the biggest following … I would be cautious.
Cramer further warned that investors should not borrow money to buy crypto. “Borrow for houses, borrow for cars – but don’t borrow for crypto,” the Mad Money host stressed, concluding.
I won’t deter you from buying crypto because of all the wealth being made there, and how it could create a whole new group of people … I wish it were you.
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