Former stockbroker Jordan Belfort compared small-cap cryptocurrencies to so-called “penny” stocks – cheap securities of obscure companies.
Jordan Belfort made some of his fortune and fame by trading stocks like this. But he emphasized that such stocks, like small-cap cryptocurrencies, can bring significant profits, but they can also completely deprive you of money.
“If you make trades in low-cap crypto assets at the right time, you can make a lot of money. On the other hand, you always know that other people are in control. You understand that you will often be in the red. And I don’t think it’s possible to do any research to fully protect yourself from the collapse of small-cap coins. Unless you invest in them at a very early stage. It doesn’t matter how the project is managed – if the cryptocurrency grows, then people will start selling it,” Belfort said.
The former broker reminded that only a small part of the portfolio should be invested in such “penny” stocks or cryptocurrencies. And for the long term, it is worth choosing stronger cryptocurrencies, like bitcoin or ether.
He himself invested in BTC because of the potential of the first cryptocurrency to become a means of storing wealth and hedge inflation. He expects this to happen as the cryptocurrency market matures.
Belfort has previously said that bitcoin will be a store of value in the future, so this is a great investment for the long term.
Source: Bits
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