The Wolf of Wall Street advised investors to steer clear of altcoins

The former American broker Jordan Belfort, known as “The Wolf of Wall Street,” advised staying away from all cryptocurrencies except Bitcoin and Ethereum. But even their share in an investment portfolio should be small.

“Apart from Bitcoin and Ethereum, I wouldn’t touch any other cryptocurrency with a ten-foot pole right now. And if you own these coins, now is the worst time to sell them,” he said.

The market for digital assets Belfort described as being in a bubble akin to the dot-com era in the early 2000s. He reminded that several early internet companies produced winners like Amazon, but 99% of investments in the sector then burned.

He stressed that he believes in the prospects of the two leading crypto assets, with a horizon of five to ten years, and did not rule out further price declines in the near term.

At the same time, Belfort maintains that Bitcoin and Ethereum should constitute a “very small” portion of a portfolio. Even with an “aggressive approach,” it should not exceed 10%, and the bulk of funds would be better invested in traditional assets, he clarified.

“The best investments are to buy shares of companies in the S&P 500, join Vanguard, or one of the other low-cost mutual funds, or ETF,” the former broker believes.

Investors in cryptocurrencies were advised not to panic and not to sell assets at the bottom.

“When deciding whether to sell cryptocurrency or not, remember why you invested money in this product in the first place. And if it can still help you reach your planned goals, keep holding it in your portfolio,” Belfort said.

In his view, the current market NFT will collapse completely, and the first generation of collectible tokens will become worthless. The prospects for this type of asset class, he linked to its next iteration, which will be more connected with digital ownership rights.

Belfort also commented on the FTX collapse, which had a negative impact on the entire cryptocurrency market. He called the project an outright scam, from which there is no real protection. The investor emphasised that this episode does not in any way undermine the merits of Bitcoin.

In July, the Wolf of Wall Street described digital gold as long-term hedge against inflation.

In August, Belfort compared low-cap tokens to “junk stocks”, on which investors will lose money. He noted Bitcoin and Ethereum as reliable digital assets.

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