CNBC’s Jim Cramer says he believes in Bitcoin and Ethereum and warns against risky investment strategies
CNBC host Jim Cramer says he firmly believes in leading digital assets Bitcoin (BTC) and Ethereum (ETH), but warns investors shouldn’t take any chances to buy them.
According to a recent report from CNBC Make It, while Cramer believes in BTC and ETH, virtual assets are highly speculative and shouldn’t make up more than 5% of a trader’s portfolio. He also warns against borrowing money to buy the top crypto assets.
“I think crypto should be part of a person’s diversified portfolio. I can’t tell you not to own crypto; I own crypto, I own Ethereum.”
According to Cramer, Bitcoin and Ethereum are “the most legitimate” cryptocurrencies on the market, but warn investors that they are still highly speculative assets that could still fall in value.
“It’s okay to own something speculative. [But] You have to admit it’s speculative, so don’t put it in the Procter and Gamble class. It’s not Coca Cola, it’s not Apple, but I propose and accept speculation.”
Cramer goes on to warn investors that they should never borrow money to buy crypto assets as they tend to exhibit high levels of price volatility.
“I would be careful not to borrow money like a lot of people do to own it [BTC and ETH] because these are speculative… borrow money for your house, borrow something for your car, but don’t borrow for crypto. But I would never stop you from buying crypto because of all the fortunes that have been made with it.”
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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