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’s Advice on Crypto Investing
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.