CNBC’s Jim Crammer Says Though Speculative But You Should Own Crypto.
The crypto industry has been growing for years, even reaching a point where financial institutions and governments that were previously against them are now getting into it. The market keeps attracting more users and money flows into it.
Jim Crammer found himself dealing with Ethereum when he needed to purchase an NFT.
“They wouldn’t let me do dollars. I had to buy it in Ethereum, so I researched it, and it’s got some qualities I like.”
Jim Crammer (or James Joseph Crammer) is an author and TV personality working with CNBC. On CNBC, Jim hosts a segment called “Mad Money.” He’s also a presenter on Squawk on the Street. Before getting into media, Jim was a hedge fund manager at Crammer Berkowitz. He was one of the founders as well as a senior partner in the firm.
There’s A Caveat
According to Jim, cryptos like Bitcoin and Ethereum are great as speculative assets, and people should remember that.
“I can’t tell you not to own crypto; I own Ethereum,”
Cryptos have potential and people have earned astronomical profits from them. For example, a decade ago, Bitcoin was worth pennies. Today, it’s worth around $30k a piece. Cryptos have made billionaires like Tyler and Cameron Winklevoss who invested early in BTC.
However, Jim provides a caveat. As mentioned, cryptos are largely speculative assets and people should only invest what they can afford to lose. Still, Jim doesn’t look at them as a gamble. They’re not gamblers. They’re simply investments that are actually part of one’s portfolio.
Crammer’s Recommendations For Crypto Portfolio
Jim Crammer has a few recommendations to share with crypto investors. First, a crypto portfolio shouldn’t take up too much of one’s investments.
A 5% in crypto and a 5% in Gold is fine. He also recommends investing in the two top coins – Bitcoin and Ethereum. They’re the two largest coins in the market and have a large following, making them comparatively more secure.
While Crammer advocates for buying cryptos, he advises against borrowing money to buy them.
“Borrow for your house, borrow for your car — but don’t borrow for crypto.”
He says Cryptocurrencies are different and not safe long-term investments.
“Don’t put it in the Procter & Gamble class. It’s not Coca-Cola, it’s not Apple,”
He also thinks crypto investments should not be put in the same basket as other types of long-term investments like stocks.
Cramer says he would never discourage someone from investing because of “all the fortunes that have been made in it.”
At the time of this writing, BTC is trading at around $30K while ETH is going for $1,794 a piece.