by Kevin Helms
The host of Mad Money, 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, the host of Mad Money, gave some advice regarding 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 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-fungible token (NFT) for a charity. “But, they wouldn’t let me do dollars,” he noted. “I had to buy it in ethereum, so I researched it, and it’s got some qualities I like: scarcity value, not as hot — so to speak — as bitcoin (BTC). So, I bought it.”
While noting that crypto is speculative, he said it is okay to invest in speculative assets. However, he stressed, “You must admit that it’s speculative,” emphasizing: “Don’t put it in the Procter & Gamble class. It’s not Coca-Cola. It’s not Apple.”
He further noted that ever since crypto came along, he has been recommending putting 5% of portfolios in crypto and 5% in gold, instead of putting 10% in gold.
While he admitted that he has no idea what the value of crypto will be, he acknowledged that many people have made a fortune with crypto. “You have every right to try to make money in crypto,” he said, adding:
I would prefer that you would do it in ethereum or bitcoin, which have the largest 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 emphasized, concluding:
I would never discourage you from buying crypto because of all the fortunes that have been made there, and how it could make a whole new group of people fortunes … I’d like that to be you.
What do you think about Jim Cramer’s comments? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons, CNBC
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this … read more.
Tony Hawk’s Latest NFTs to Come With Signed Physical Skateboards
Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs … read more.
Check all the news here
by Kevin Helms