Keep 2-3% of Your Net Worth in Bitcoin: Thomas Peterffy Advises
Billionaire Thomas Peterffy recommends that investors allocate 2-3% of their net worth to Bitcoin, advising caution due to its volatility and suggesting a cap on crypto investments.
Keep 2-3% of Your Net Worth in Bitcoin: Thomas Peterffy Advises
Billionaire Thomas Peterffy, founder of Interactive Brokers Group, has recommended that investors include Bitcoin in their portfolios, but with caution. In a recent Bloomberg interview, Peterffy advised clients to allocate only 2-3% of their net worth to Bitcoin, emphasizing that while crypto could be a valuable asset, its volatility requires a cautious approach.
Peterffy, who has an estimated net worth of $53 billion according to the Bloomberg Billionaires Index, stressed the importance of keeping Bitcoin holdings limited. He warned, “I would recommend that people put maybe 2% to 3% of their net worth into bitcoin. I think anybody who does not have bitcoin should have some bitcoin.” However, Peterffy also expressed concerns about the extreme price fluctuations of cryptocurrencies, urging investors to be prudent with their investments.
Interactive Brokers, the firm Peterffy founded, follows a conservative approach to cryptocurrency trading. The platform limits clients to investing no more than 10% of their assets in Bitcoin, reflecting Peterffy's belief that larger investments in such a volatile asset could be "very dangerous."
In 2021, Interactive Brokers began offering cryptocurrency trading, allowing users to buy and sell Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, in partnership with the Paxos Trust Company.
As the cryptocurrency market continues to grow, Peterffy’s advice reflects a broader sense of caution among seasoned investors who understand the potential rewards but also the risks of digital assets.
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