Mad Money’s Jim Cramer Advises How to Invest in Bitcoin, When to Sell

Mad Money host Jim Cramer has some advice on how to invest in bitcoin and when is a good time to sell. He said, “I’m a bitcoin believer,” outlining the reasons why he is sold on the cryptocurrency and why people are buying bitcoin instead of gold.

Jim Cramer’s Advice on Investing in Bitcoin

Jim Cramer, the host of Mad Money on CNBC, gave some advice on investing in bitcoin on Wednesday. The former hedge fund manager is also the co-founder of Thestreet.com, a financial news and literacy website.

“People don’t believe in fiat currency anymore,” Cramer began. “People believe that the United States is printing money … But bitcoin is not printing bitcoin. So that’s more valuable in the same way that gold is hard to find. And gold is growing, we find, about 1% more than we had the year before, that’s all … so it has to do with scarcity.”

Emphasizing that “There’s no scarcity of dollars” while “There’s some scarcity of gold,” he contrasted:

There’s total scarcity of bitcoin. When you have something that’s totally scarce in an era where people fear inflation and don’t believe in government bonds and they don’t believe in governments in general, then this bitcoin suddenly has allure.

The Mad Money host further opined: “the more people who give it [bitcoin] a higher price … the more likely it is that there will be more people come in.”

Treating Bitcoin Like Stock, When to Take Profits

Cramer additionally shared: “I sold enough bitcoin yesterday to pay for my initial stake, which is what I would do if it’s a stock. I take out my basis and then I let it run.” He added: “I am not going to look at bitcoin again. I’m fine with bitcoin until it comes all the way back to where I bought it and then I will refigure, maybe buy it again.”

Cramer elaborated: “As I tell people … if you have a double, take a lot out. And I doubled, so I took a lot out. It’s just no different from a stock…

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