” There are fortunes to be made in crypto “, argues Jim Cramer, a skeptic recently converted to bitcoin. However, many of the crypto-enthusiasts do not hesitate to warn against his advice. We explain the reasons to you.
Cramer advises investing 5% of your savings in bitcoin
Jim Cramer was known as a strong proponent of traditional finance long before 2018. It was at a time when bitcoin was dropping to $6,000 a coin. Two years later, the world was surprised by a Cramer about-face. Indeed, the host of the show “Mad Money” announced that there are fortunes to be amassed in the universe of cryptocurrencies.
Interviewed by CNBC Make It, Cramer confessed to holding ethereum. The reason for this purchase? His intention to profit from an NFT launched during a charity event.
” I had to buy it in ethereum, so I did some research, and it has qualities that I like,” justified the one who previously maintained that there was no “no real value in crypto “. At one time, Jim Cramer even went so far as to predict further declines in the crypto market.
Since his repentance, he has not hesitated to support ETH and BTC. He also offered some advice for investors, namely:
- never borrow money to afford crypto assets;
- do not include them in the same category as Coca-Cola, Procter & Gamble, Apple, etc. ;
- and not invest more than 5% of our savings in cryptocurrencies;
Recently, he welcomed the opening of an investigation by the Securities and Exchange Commission (SEC) against Coinbase. Indeed, the latter would have offered to trade “ securities » not registered with the regulator.
” I’ve been waiting a long time for this SEC investigation into Coinbase to happen. Now here we are. You can’t do what you want with titles in this country… “, he tweeted.
He’s not as holy as he looks
Cryptocurrencies don’t have no real value “, launched Jim Cramer at a certain time. The advice he offered here and there would not seem sufficient to restore his image.
Some crypto-enthusiasts like John E Deaton go so far as to berate him on Twitter by posting such messages:
” I’m sorry @jimcramer but I have to admit your comment is the most bullish sign cryptos have had in weeks “.
On Quora, the founder of In Bitcoin We Trust also alerted bitcoiners to the words of this stock picker noting:
” Beware of Jim Cramer and his famous advice on the world of cryptocurrencies or on the stock market… »
Didn’t he stress that he entered the world of cryptos as a “gamer”?
” I didn’t buy bitcoin or ethereum as inflation insurance. In all honesty, I was playing. I was just playing on crowd psychology, though, and I have no idea why these things went up, except that there are a lot of overenthusiastic people out there wanting to buy high and sell higher. »
It is indeed the theory of the greatest madman that Bill Gates did not hesitate to associate with cryptographic assets when he spoke on the subject.
Let’s also not forget that Cramer was a real fan of Coinbase two years ago. Now that the American exchange is in good shape, it is changing sides. Deaton does not appreciate this gesture.
As for the question ” should we be wary of Cramer the answer is up to each investor. If the use of the word “play” can disgust holders and bitcoiners, novices might see it as something to reduce the risks associated with this adventure. Because the level of risk tolerance differs from one person to another. And with the volatility of bitcoin and other cryptocurrencies, using the 5% of your savings would seem more sensible. At this point, the ball is in your court.
Sources: CNBC; Nasdaq; U°Today
Receive a digest of news in the world of cryptocurrencies by subscribing to our new daily and weekly newsletter service so you don’t miss any of the essential Cointribune!
The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy of this World, against all hope, I will say that I had something to do with it
#Crypto #Advice #invest #savings