The American TV personality Jim Cramer argued that cryptocurrencies have a long-term value as they are decentralized assets that could go mainstream in the future. However, he recommended investors interact mainly with Bitcoin and Ethereum as they have captured the attention of broad society and “seem the most legitimate.”
Cramer’s latest crypto tips
In a recent interview, the host of CNBC’s Mad Money show – Jim Cramer – described himself as a “believer” in digital assets, primarily Bitcoin and Ethereum. The two largest cryptocurrencies by market capitalization have been embraced by many investors and seem to have the greatest merits, he said.
Additionally, Ethereum has a huge presence in the non-fungible token niche, and as such, Cramer had to purchase some amounts to conduct an NFT order:
“I can’t tell you not to own crypto. I own Ethereum. They wouldn’t let me make any dollars. I was supposed to buy it from Ethereum, so I researched it, and it has some qualities that I like.
Despite his positive opinion, he thinks cryptocurrencies should not account for more than 5% of one’s portfolio. They could be a speculative investment, and numerous investors use their price swings to generate profits.
Subsequently, Cramer advised individuals never to borrow money to enter the crypto market because the asset class is very different from the majority of commodities:
“Borrow for your house, borrow for your car — but don’t borrow for crypto. Don’t put it in the Procter & Gamble class. It’s not Coca-Cola, it’s not Apple.”
His previous crypto visions
Cramer has been pretty undecided about his crypto stance over the past few years. In November 2020, he described bitcoin as a “great alternative” to gold. The statement came as a surprise since previously Cramer positioned himself as a true supporter of the precious metal while calling BTC an “outlaw currency.”
A month later, the digital asset’s price plunged significantly, and the American used the opportunity to increase his crypto holdings. He explained his position was “not a big one” but “certainly important to diversify.”
In April last year, Cramer doubled down on his bullish view, saying he wanted to receive his salary in bitcoins. “I think it’s a strong value,” he said at the time.
Nonetheless, several months later, he made a U-turn, maintaining that the cryptocurrency sector is full of “greater fools.” He also explained he had not invested some of his wealth into the market because of inflationary reasons. Instead, he was “simply gambling.”
