The famous Mad Money host, Jim Cramer, advises when it’s a good time to go in and out of the Bitcoin market.
One of the best known figures in the world of financial markets is Jim Cramer, host of the Mad Money program. What few people know about Cramer is that the financial analyst and television star is a great believer in cryptomoney. Having acquired the same in the past in Crypto Trader as an investment. That’s why, in the midst of the great bull rally that cryptomoney continues to experience, Jim Cramer advises when to buy and when to sell Bitcoin.
Investing in Bitcoin (BTC) isn’t easy, what do the experts think?
The Bitcoin Times
When it comes to investing in Bitcoin, there’s a reality we can’t ignore. Either we want to invest in the long term in crypto currency, and therefore we can buy cryptoactives and keep them in hodling for months and years. Or we want to take advantage of the rise in BTC prices and generate quick profits in the middle of this new big bullish rally.
For this reason, one of the main skills any Bitcoin investor should possess right now is knowing when to enter and when to exit the market. Well, as yesterday’s collapse of BTC prices showed, the volatility of the cryptomoney market can generate huge losses, but also great opportunities to make money.
Jim Cramer advises when to buy and when to sell Bitcoin.
However, to achieve this ideal, buying when the price of Bitcoin is low, and selling when it’s high, we must try to understand how this market works. That’s why Jim Cramer, driver of Mad Money, gave his advice on investing in Bitcoin.
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Jim Cramer’s Vision
Thus, Cramer began by explaining that the popularity of cryptomoney in these times is explained by the mistrust of consumers with respect to the U.S. dollar. For, as governments increase monetary liquidity in the market, to face the economic crisis of the COVID-19, fears of a possible return of 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’s more valuable in the same way that gold is hard to find. And the price of gold is growing, we found, 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. But that doesn’t mean we should rely on our BTCs, because for Cramer it’s important that we see our investment in Bitcoin as any stock in the stock market:
„Yesterday I sold enough Bitcoin to recoup my initial investment, which is what I would do if it were a stock. I take out my base and then let it run (…) I’m not going to look at Bitcoin again. I’m fine with Bitcoin until I go back to where I bought it and then I’ll re-qualify it, maybe I’ll buy it again.
So, according to Jim Cramer’s strategy, the important thing when investing in Bitcoin is knowing when to pull out of the market. As he puts it, when you’ve doubled the value of your investment, it’s a good time to withdraw money and stay safe.