One of the best known figures in the world of financial markets is Jim Cramer, host of the Mad Money program. What few know about Cramer is that, the financial analyst and TV star is a big believer in digital currencies. Having acquired the same in the past a certain amount in Bitcoin as an investment. For this reason, in the midst of the great bullish rally that digital currency continues to experience, Jim Cramer advises when to buy and when to sell Bitcoin.
The times of Bitcoin
When it comes to investing in Bitcoin there is a reality we cannot ignore. Or we want to invest in the long term in digital currency, and therefore we can buy cryptocurrencies and keep them in hodling for months and years. Or we want to take advantage of the rise in BTC prices and generate quick gains amid this new big bullish rally.
For this reason, one of the main skills that any Bitcoin investor should have at this time, is knowing when to enter and when to exit the market. So, as demonstrated by the collapse of BTC prices yesterday, volatility in the price of digital currency can generate huge losses, but also great opportunities to make money.
However, to achieve this ideal, buying when the price of Bitcoin is low, and selling when the same is high, we must try to understand how this market works. Which is why Mad Money driver Jim Cramer gave his advice on investing in Bitcoin.
Jim Cramer’s vision
Thus, Cramer began by explaining that the popularity of digital currency in these times, is explained by consumer distrust of the US dollar. So as governments increase monetary liquidity in the market, to cope with the economic crisis of VOCID-19, fears of a possible return to inflation increase.
«People no longer believe in fiat money (…) People believe that the United States is printing money (…) But Bitcoin is not printing Bitcoin. So it is more valuable in the same way that gold is hard to find. And the price of gold is rising, we find, about 1% more than we had the year before, that’s all».
So for Jim Cramer buying Bitcoin as a refuge from inflation makes sense, thanks to its scarcity. Which is not to say that we should rely on our BTCs, as for Cramer it is important that we see our investment in Bitcoin as any stock on the stock exchange:
«Yesterday I sold enough Bitcoin to recoup my initial investment, which is what I would do if it were a stock. I pull out my base and then let it run (…) I’m not going to look at Bitcoin again. I’m fine with Bitcoin until it goes back to where I bought it and then I’ll re-rate it, maybe buy it again».
So, according to Jim Cramer’s strategy, the important thing when investing in Bitcoin is knowing when to withdraw from the market. As the saying goes, when you have doubled the value of your investment it is a good time to withdraw money and stay safe.