CNBC’s Jim Cramer: Investing in crypto is smart; here’s why
- Cramer started by buying Ethereum in a bidding auction to purchase an NFT
- He assures that it’s fine to own something that’s speculative
- He advises against borrowing money to own crypto
Jim Cramer, who hosts the popular finance and investment show “Mad Money”, shared his thoughts on crypto on CNBC Make It. He thinks crypto should be part of any diversified portfolio.
Why did he start buying crypto?
Jim Cramer told CNBC Make It that he bought Ethereum (ETH/USD) because he was in a bidding auction to buy an NFT and they wouldn’t let him spend dollars. He did research and found Ethereum had “some qualities” he liked. He assures that it’s ok to own something that’s speculative, adding it’s even something he teaches.
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When he started “Mad Money”, he said:
I think you should own spec and I think you should own a gold stock. Ever since crypto came out, I said: instead of 10% being gold, 5% should be gold and 5% crypto.
Cramer has ‘no idea’ what crypto is worth
Cramer told CNBC:
I have no idea what the value of crypto is, but you have every right to make some money in crypto.
He advises against borrowing money to own crypto. In his experience, this is something many people (wrongly) do. However, he does recommend buying. He concluded:
I would never discourage you from buying crypto because of all the fortunes made. I’d like that to be you!
The highly popular CNBC show “Mad Money,” which he is best-known for hosting, communicates to viewers the mentality of a professional investor. The host never tells people directly what to think or do.