Jordan Belfort, the American entrepreneur and former stockbroker known as “The Wolf of Wall Street,” has warned investors not to go near any cryptocurrencies that are not Bitcoin (BTC) or Ether (ETH).

Belfort is Avoiding Crypto Other Than BTC and ETH

During a recent YouTube video about his crypto update, Belfort revealed that he only invests in BTC and ETH. His decision is fueled by the current state of the crypto industry, triggered by the collapse of the bankrupt crypto exchange FTX.

Belfort believes the crypto crash would be like the .com bubble burst of 2000 that led to the collapse of many entities that have not recovered to date. Likewise, the bear season has rendered the value of several tokens useless, and they stand a greater chance of remaining down when the market recovers.

However, he insisted that the fall of FTX is not enough reason to disregard BTC and ETH or predict that any of them would eventually become worthless and fall to zero.

“But, just because FTX itself was a scam that doesn’t mean that you can disregard Bitcoin completely and say it’s worthless or going to zero and the same thing goes for Ethereum. But, my point is this, outside of those two coins, Bitcoin and Ethereum, I literally would not be touching crypto right now with a 10-foot pole,” Belfort said.

Interestingly, the former stockbroker further advised that BTC and ETH should constitute a small portion — under 10% — of an investor’s portfolio. He recommended that such investments be made with money one can afford to lose, while the bulk should be made in the S&P 500.

Investors Should Write Off Bad Tokens and Start Over

The former stockbroker further explained that the bear season is the worst time to sell for people who have purchased digital assets outside the two he mentioned.

Belfort advised that such investors first evaluate their initial reasons for making such investments and check if they still have enough to keep HODLing them. If they no longer “hold water,” he recommended, “it’s best to take that loss now before the end of the year, write it off, and move on. Learn some lessons and try again.”

~ By William A. Frederick ~