CNBC analyst Jim Cramer has changed his mind about investing in cryptocurrencies, calling BTC and ETH the best investments for the long term. However, they should allocate no more than 5% of the portfolio, he said.
Previously, Jim Cramer was skeptical about digital currencies, preferring to invest in stocks and gold. Kramer has tried to buy crypto assets before, but, according to him, he did it purely for the sake of excitement.
Now, despite the volatility of the cryptocurrency market, Kramer declared, who believes in the potential and value of crypto assets, therefore, sees the point in buying bitcoin and ether. Due to the decentralized nature of cryptocurrencies, they will become more widespread in the long run. According to Cramer, of all the cryptoassets, bitcoin and ether seem to him “the most legitimate.”
The analyst warned that investors should still perceive cryptocurrencies as instruments for speculation. Many people trade them for quick profits using price fluctuations. However, trading is inextricably linked with risks, and successful results do not guarantee that traders will also make profits in the future. Any downturn in the market can be a real “cowboy race” for investors and traders, during which you can literally lose money “overnight,” Kramer argues.
The CNBC TV presenter believes that cryptocurrencies should not be compared with traditional assets or blue-chip stocks, so no more than 5% of the investment portfolio can be allocated to them. Another piece of advice Kramer gave to people is to never borrow money to buy cryptocurrencies.
“I cannot dissuade you from buying cryptocurrencies – people have earned and will earn on them. I own the air. Ethereum has some qualities that I like. But cryptocurrencies cannot be put on a par with Procter & Gamble, Coca-Cola or Apple,” Kramer said.
About a year ago, Kramer said that he had sold all the bitcoins he had, suggesting that the BTC rate would collapse due to strong pressure from international regulators on cryptocurrencies.
Source: Bits
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