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CNBC analyst Jim Cramer changedopinion on investing in cryptocurrencies, naming BTC and ETH as the best investments for the long term. However, you should allocate no more than 5% portfolio, he believes.
Previously Jim Cramer was skepticaltreated digital currencies, preferring to invest in stocks and gold. Cramer had tried to buy crypto assets before, but, according to him, he did it solely for the sake of excitement.
Now, despite the volatilitycryptocurrency market, Cramer said that he believes in the potential and value of crypto assets, so he sees the point in buying bitcoin and ether. Due to the decentralized nature of cryptocurrencies, they will become more widely adopted in the long term. According to Cramer, of all the crypto assets, Bitcoin and Ethereum seem to him “the most legitimate.”
The analyst warned that investors don't careshould perceive cryptocurrencies as instruments for speculation. Many people trade them to make quick profits by taking advantage of price fluctuations. However, trading comes with risks, and successful results do not guarantee that traders will also make a profit in the future. Any downturn in the market can be a real “cowboy ride” for investors and traders, during which you can literally lose money “overnight,” Cramer argues.
CNBC TV presenter believes that cryptocurrencies are notshould be compared with traditional assets or blue chip stocks, so no more than 5% of the investment portfolio can be allocated to them. Another piece of advice Cramer gave to people is to never borrow money to buy cryptocurrencies.
"I can't dissuade you from buyingcryptocurrencies - people have made and will continue to make money on them. I own the airwaves myself. Ethereum has some qualities that I like. But cryptocurrencies cannot be put on the same level as Procter & Gamble, Coca-Cola or Apple,” Cramer said.
About a year ago, Cramer said that he sold all the bitcoins he owned, suggesting that the BTC rate would collapse due to strong pressure from international regulators on cryptocurrencies.
