Seeing the current scenario of the market Jim Cramer suggests a 5% allocation to crypto. He also thinks that Coinbase’s stock is actually cheap right now and is a good buy. This makes sense as Coinbase started its journey at a much higher price but the market dip also bought it down. After all crypto markets and Coinbase go hand in hand (more or less). Another reason it has fallen is the poor listing as said by Jim. He said that the company let out too many stocks which led to this. But all in all the company is very important for crypto. So, it is a good investment.
Jim’s 5% allocation to crypto
Jim Cramer says that he is a believer in crypto and hence suggests a 5% allocation. Even he has a direct investment in Ethereum and has also been in and out of Bitcoin time and again. Jim first invested in Bitcoin in December 2020 and also advised investors to be patient with the crypto. But funnily enough, he himself ran out of patience and said BTC is not sound structurally and is therefore not going up. Jim even said that he has sold all his BTC and doesn’t need it. He has always been bullish about crypto and has said that it has made him a lot of money. He even paid off 50% of his mortgage using BTC gains.
Is it okay to go all-in?
I know most people getting into crypto go all in or don’t at all. The idea is that invest what you don’t need in short term. If you are thinking about doubling your money in a month so you can get a car then it’s not the right mindset. If you actually have a lot of money then diversification is important. But if you are just starting out with a few hundred bucks it is okay to go all in to crypto considering you have done your research and know the potential risks. People know the huge upside of the investment and are therefore okay with the huge swings that are very difficult to digest.
What are your thoughts on the crypto allocation that Jim Cramer suggests? And do you think Coinbase is a good buy at this price? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.