Jim Cramer, the host of CNBC's "Mad Money," recommended buying Coinbase stock and suggested that 5% of investment portfolios should be allocated to cryptocurrency. Cramer posted the comments at the Lightning Round on Aug. 25 in response to a caller who asked if buying Coinbase shares was a great way to get involved in cryptocurrencies.
I think they took a lot of stocks when they started out. I was against it. They should have been buyers, not sellers. I think the price was very, very bad. I think the company is the ...natural depository for cryptocurrencies. Coinbase Stock (COIN) shares have seen a lackluster performance since they were listed on the Nasdaq stock 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 in the most recent quarter, with net income of $ 1.6 billion in the second quarter of 2020 compared to $ 32 million in the second quarter of 2020. Cramer added to his comments by suggesting that the direct involvement in cryptocurrencies could 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.While Cramer has been relatively stable with Ethereum (ETH) lately, he has had a new love affair with digital gold since buying Bitcoin (BTC) in December 2020. In fact, it's everywhere. After a cryptocurrency recession in June, Cramer urged investors to be “patient” with BTC, but ten days later his patience ran out, boldly claiming that BTC “isn't increasing for structural reasons,” revealing, “It sold almost all of my bitcoin . I do not need it. In March, Cramer said optimistically that BTC had made him "a ton of money" while his investments in gold and stocks had let him down. In April, he stated that he had paid out 50% of his BTC from "Fake Money" to pay your mortgage.