Mad Money’s Jim Cramer Offers Advice on Cryptocurrency Investing – Featured Bitcoin News

Jim Cramer hosts Mad Money and has some suggestions for investors in cryptocurrency. “I would never discourage you from buying crypto,” he said, adding that he himself owns ethereum.

Jim Cramer’s Advice on Crypto Investing

CNBC Make It Wednesday featured some cryptocurrency investment advice from Jim Cramer (host of Mad Money). Cramer was an ex-hedge fund manager and co-founded Thestreet.com. This financial news and education website provides information for consumers.

“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 have crypto. I also own ethereum.

He said that he had bought Ethereum (ETH) to help fund 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.”

He acknowledged that crypto was speculative but said it’s okay to invest. 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.”

Additionally, he noted that crypto has always been recommended to have 5% of portfolios invested in crypto, and 5% in the gold standard, as opposed to 10%.

He admitted that it was impossible to predict the future value of cryptocurrency, but he did acknowledge that crypto has made many people a lot. “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 warned further that crypto investors shouldn’t borrow to purchase it. “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? Please leave your comments below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.