Bitcoin advocate Charlie Shrem has said that new crypto investors should not be spooked by the volatility of the asset class, but should rather select a token near the top end of the market and adopt a long term investment position.
Speaking to Yahoo Finance at the MoneyShow Conference in San Francisco on Thursday August 23, Shrem advised against excessive exposure to crypto assets on the part of new investors.
Acknowledging the unpredictable nature of cryptocurrencies, he said:
“You’re putting your wealth in these things, and they break. Things happen. The values go down 90%, then the values go up 100%. I always tell people if they want to get into crypto, ‘How much money, if you lost it right now, would you be OK with?’ ‘$500,’ they tell me. So invest $500 in a basket of crypto, and then just have fun with it. Just enjoy it, learn. There’s a lot of good ones: bitcoin, Ethereum, Dash, Litecoin. Just learn what makes them different.”
Shrem also advises investors to buy crypto with the aim of holding for five years, after which they will have a heightened probability of getting a return. This he says, is because bull and bear markets usually occur in two-year cycles.