The rush of cryptocurrencies into the market has given the impression that investing in any asset is good for a portfolio of traders. After the recent plunge in Bitcoin’s value and rumors of tether fraud, investors are wondering how lucrative crypto can be.
Bitcoin, the biggest name in crypto investing, dropped last week to almost $30,000 a coin, which is over 50% from its high. However, since the plunge in the digital coin, it has rebounded to trade above $40,000.
Some productive traders continue to invest in crypto as a part of their investment portfolios. One such trader is Jim Cramer, the host of Mad Money. For months, Cramer has been claiming that his investment in crypto is better than gold.
As Bitcoin and Ethereum began to drop last week, many investors sold crypto and made hundreds of thousands of profits. Cramer revealed he had paid off his mortgage and used his winnings to buy a farm. Although many people claim that certain cryptocurrencies are scams, Jim Cramer still stands by them. He even benefited from his cryptocurrency business. Now he is using his winnings to buy a farm in California.
In addition, Cramer used his cryptocurrency gains to pay off his mortgage. In recent months, Cramer has continued to promote his success with various cryptocurrencies. He has said that selling your cryptocurrencies when they are high and reinvesting them in other ways can lead to better payouts to consumers. In April, he said he had managed to pay the mortgage on his home with his cryptocurrency winnings.
He never revealed how much he invested in them, but he said he invested up to $500,000 in them. It’s fake money paid for with real money, ‘he said, according to Fortune. “When I bought it, I owned a locked house, warehouse, and barrel. Cramer sold his Bitcoin stock when it was at the height of its profits, and invested what one would buy with a coin for about $12,000. At its peak, it cost $64,829.
It does look like Cramer remains committed to the crypto market as part of its portfolio. And he’s benefiting from it.
However, he is telling investors to start playing it safe: “We need to accept the beatdown in speculative assets for the greater good of the entire stock market,” Cramer said on Mad Money last Wednesday. “This speculative meltdown can temporarily weigh on the entire market, sure, but once the speculators get shaken out, I’m betting it’s a win for the Dow and definitely the S&P.”