CNBC host Jim Cramer says that he’s a big believer in leading digital assets Bitcoin (BTC) and Ethereum (ETH), but warns that investors shouldn’t take risks to purchase them.
According to a recent report by CNBC Make It, even though Cramer is a believer in BTC and ETH, he says that virtual assets are highly speculative and should make up no more than 5% of a trader’s portfolio. He furthermore warns against borrowing money to purchase the top crypto assets.
“I think crypto should be part of a person’s diversified portfolio. I can’t tell you not to own crypto; I own crypto, I own Ethereum.”
According to Cramer, Bitcoin and Ethereum “are the most legitimate” cryptocurrencies on the market, but warns investors they are still highly speculative assets that could still lose value.
“It’s okay to own something speculative. [But] you must admit that it’s speculative so you don’t put it in the Procter and Gamble class. It’s not Coca Cola, it’s not Apple, but I suggest and accept speculation.”
Cramer goes on to warn investors that they should never borrow money to purchase crypto assets as they tend to display a high degree of price volatility.
“I would be careful not to borrow money as many people do to own [BTC and ETH] because these are speculative… borrow for your house, borrow for your car, but don’t borrow for crypto. But I would never discourage you from buying crypto because of all the fortunes that have been made in it.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Ana Aguirre