The host of Mad Money, Jim Cramer, is begging crypto investors to take profits on any crypto gains in their portfolios. “I’m begging you to. Don’t let it become a loss,” he said, emphasizing, “I don’t want you to lose money.”
Mad Money’s Jim Cramer Advises Investors to Take Profits on Crypto Gains
The host of CNBC’s Mad Money show, Jim Cramer, said Monday that cryptocurrency investors should take profits on their crypto holdings if they have any gains in their portfolios. A former hedge fund manager, Cramer co-founded Thestreet.com, a financial news and literacy website.
He said:
I know the crypto-lovers never want to hear me say sell, but if you’ve got a big gain as I did, well, I’m begging you to. Don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout.
Cramer warned that the struggles of Evergrande, a major property developer in China, are likely to keep weighing on crypto markets. Evergrande also operates in other industries such as healthcare services and electric vehicles. The company has more than $300 billion in total liabilities and recently warned investors it may default on its debts.
The Mad Money host explained that his crypto concerns right now start with tether (USDT). “The problem with tether is that it’s backed by various holdings and roughly half of those are commercial paper — short-term loans — and much of that is believed to be, but we don’t know, Chinese commercial paper,” he said.
Cramer added: “Tether said they have no Evergrande exposure. But tons of Chinese businesses stand to get crushed by this fiasco, and they have Evergrande exposure, and that could spell real trouble if the dominoes fall here.” He warned: “If tether collapsed, well, then it’s going to gut the whole crypto ecosystem. So if you own crypto in any form and you’ve got big gains, I recommend taking something off the table.”
Nonetheless, the Mad Money host emphasized that he still sees potential for cryptocurrencies to go “mainstream.” He opined:
Right now, owning crypto is what’s known as a ‘crowded’ trade and I don’t want you to lose money if this space keeps getting hit by Evergrande’s contagion worries.
In August, Cramer recommended that investors should put up to 5% of their portfolios in cryptocurrency. In June, he revealed that he had sold his bitcoins and bought ethereum, citing that “it’s more of a currency.”
What do you think about Jim Cramer’s advice to take profits on crypto gains? Let us know in the comments section below.
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