Jim Cramer, the host of Mad Money and co-founder of The Street, bought bitcoin with the intention of continuing to increase his holdings. He explained his buying strategy, saying there is no reason not to wait for bitcoin’s price to drop again.

Jim Cramer bought Bitcoin

Jim Cramer is the host of Mad Money on CNBC, a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website. He tweeted Friday in response to a comment about a dip in the price of bitcoin. “I think I’m going to buy some,” he wrote.

Mad Money's Jim Cramer buys Bitcoin and reveals strategy to increase ownership

Cramer confirmed on Thestreet a few hours later that he had bought bitcoin. He then explained that he bought the cryptocurrency at the time because the price of bitcoin had just dropped to the $ 17K level. “It was just a decent level,” said the Mad Money host, adding:

I will buy as I usually do. When something comes down I get bigger and bigger and bigger. I just think you want to diversify into all kinds of asset classes.

“I have gold,” he went on. “I want to diversify into a bitcoin, not a big position for me, but it is certainly important to be diversified and bitcoin is an asset and I want to have a balance of assets.”

While responding to a question about how an investor would start investing in bitcoin, Cramer opined:

You just have to acknowledge the history of it rising and then running back down. It got too much money, got too hot, so there’s no reason not to wait for it to come back down.

When he bought bitcoin on Friday morning, he said the cryptocurrency’s price was “off the top nicely, and I like to buy something that’s neatly off the mark.”

In September, Cramer said that he was considering buying bitcoin because he feared a “massive amount of inflation”. He was also concerned about leaving a legacy to his children, stressing that they wouldn’t be comfortable with gold, but they would be comfortable with crypto.

What do you think of Jim Cramer’s bitcoin buying strategy? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, CNBC

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