Jim Cramer, the host of CNBC’s Mad Money, has recommended buying Coinbase stock and suggested that 5% of investment portfolios should be allocated to cryptocurrency.
Cramer made the comments on the Lightning Round on Aug. 25 in response to a caller who asked if buying Coinbase shares was a good way to get crypto exposure. The 66-year-old financial personality stated that the listing of Coinbase went “very badly”, but sees her as a big player in the cryptocurrency:
“I think Coinbase is cheap. I don’t really care about management because I think they issued a lot of stocks in the beginning. I was against it. They should have been buyers, not sellers. I think the listing went very, very badly. I think the company is the … natural repository for crypto. “
Coinbase Stock (COIN) stock has seen a lackluster performance since it was listed on the Nasdaq exchange in mid-April. At the time of writing, COIN is at $ 248, 27% less than its all-time high of $ 340 on April 16.
However, the company had a strong performance last quarter, posting net income of $ 1.6 billion in its Q2 report, compared to $ 32 million in Q2 2020.
Cramer added to his comments by suggesting that direct exposure to cryptocurrencies should also be an option for investors:
“I own Ethereum directly. I think you should have up to 5% of your portfolio in crypto. I believe in crypto. “
The CNBC host is a former hedge fund manager and co-founder of the financial news website TheStreet.com. While Cramer has remained relatively constant with Ethereum (ETH) lately, he has had a recurring love affair with digital gold since his first Bitcoin (BTC) purchase in December 2020.
In fact, he’s everywhere. In the midst of a June crypto downturn, Cramer urged investors to be “patient” with BTC – but ten days later his patience ran out and he boldly claimed that BTC was “not rising for structural reasons,” revealing:
“I’ve sold almost all of my bitcoin. Don’t need it. “
In March, Cramer said optimistically that BTC had made him “a ton of money” while his investments in gold and stocks had failed him. In April, he said he had paid 50% of his “fake money” to BTC to pay off his mortgage.
Cointelegraph reported on May 5th. Cramer said he owns “a lot of ether” after initially buying the asset to bid on a Time Magazine NFT.
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