Writer and stockbroker Jordan Belfort, who is the subject of the movie “Wolf of Wall Street”, says that investors should stay away from the altcoin market. Their explanation is based on the effects of the crisis caused by FTX.
Jordan Belfort says stay away from altcoin market
The American stockbroker shared his views on the current state of the cryptocurrency market shortly after the FTX crash. On December 5, he talked about FTX and the subsequent collapse in a broadcast on his Youtube channel. The Wall Strett founded says he will not approach altcoins other than Bitcoin and Ethereum at this time. Part of the video includes the following statements:
Apart from Bitcoin and Ethereum, I couldn’t quite touch any crypto right now, even with a 3 meter pole.
Traditional investments or cryptocurrencies?
Belfort then shared the opportunities he saw in traditional markets. On top of that, he believes that “Bitcoin or Ethereum should represent a very small portion of your overall investment portfolio. In other words, I wouldn’t recommend investing your money there,” he says. Instead of cryptocurrencies, in Belfort’s view:
The best investment is to buy the S&P 500, go to Vanguard, one of the other truly ultra-low cost mutual funds or ETFs, and put the bigger money into it.
What should altcoin investors do?
However, for those who have already bought other cryptocurrencies, Belfort said, “it is typically the worst time to sell. When everything is at the bottom, you panic and sell at the worst possible time,” he said. Therefore, “deciding whether to sell what you have now really depends on going step-by-step, looking at the fundamentals of each cryptocurrency, each token.” Belfort’s statements in the video were as follows:
When deciding whether to sell something you have, go back to the time you bought it and ask, ‘What were my reasons, why did I make this purchase?’ and based on these reasons, ‘well, why is this still sound, does it still make sense?’ you say.
Jordan Belfort’s views on cryptocurrencies
As a reminder, Belfort recently mentioned that the collapse of FTX was probably premeditated. Accordingly, he labeled former CEO Sam Bankman-Fried a sociopath. He warned that the platform’s business model is a pump and dump operation. In August, he backed out from his anti-crypto views in 2017. Despite standing behind everything else he said at the time, he admitted that his initial predictions of Bitcoin going to zero were wrong.
cryptocoin.com As we reported, Belfort recently admitted to being the victim of a hacking attack. He shared that he had stolen nearly $300,000 worth of cryptocurrencies stored in his Metamask wallet. So he said he understood the importance of cold wallets.
