19-year-old bitcoin millionaire: Here's how much you should invest in cryptocurrencies

Approximately 40 percentage of those between 24 and 35 have as a minimum $1,000 of their savings account. that might not sound like that plenty, however 19-yr-old bitcoin millionaire erik finman says that's sufficient to spend money on cryptocurrency.

the youngster has had some good fortune with the cryptocurrency growing up: at age 12, finman used a $1,000 present from his grandmother to buy his first bitcoin and by means of 18, he have become a millionaire. he presently owns 401 bitcoins, which equals $three.4 million at a rate of $8,512 a coin.

in an interview with cnbc make it, he gives this recommendation to different younger people seeking to be part of the crypto-craze: make investments 10 percentage of your income into the top cryptocurrencies, specially bitcoin.

"i'd simply placed it into bitcoin," he says. "i suppose bitcoin is the safest cryptocurrency right now."

but, experts are generally greater cautious approximately investing in bitcoin, given its volatility: although it reached $16,000 simply weeks in the past, a single coin currently goes for nearly half of as a good deal.

jpmorgan chase ceo jamie dimon famously brushed off the cryptocurrency as "a fraud." at the turning in alpha convention provided by using cnbc and institutional investor, he added, "it is simply not a real element, subsequently it'll be closed."

cnbc's jim cramer has the same opinion. on "squawk container," he likened the cryptocurrency to "monopoly money," adding, "it is simply pure playing at this point. i mean, in case you want to gamble, go to vegas. vegas is gorgeous."

additionally, it is important to note that most private finance experts advocate you live by means of the 50-30-20 rule, by using which "50 percent of your earnings goes closer to requirements, 30 percentage toward discretionary spending and 20 percent in the direction of saving."

if so, you'll remember making an investment a few percent of that 20 percentage you are saving, as opposed to the overall 10 percentage of your profits that finman recommends — and in a diverse portfolio, now not simply in excessive-danger investments like cryptocurrency.

"never before have younger humans been able to exchange financial instructions so fast."
-erik finman, bitcoin millionaire
finman is particularly bullish on bitcoin: he says it is presently your exceptional guess, although he notes that every other coin may want to subsequently take the top spot. however, he predicts that may not occur for some time.

"placing money into bitcoin right now is ideal," he says. "that may alternate because there can be a better answer. but i assume that better answer can be very apparent and can be a long time coming so that you can make that switch."

finman has formerly stated that making an investment in cryptocurrency is one of the quickest approaches for younger humans to obtain wealth. "cryptocurrency represents the biggest switch of wealth our generation has ever visible," he wrote on twitter. "in no way earlier than have younger people been capable of exchange financial training so quickly."

nevertheless, he provides the same disclaimer as mark cuban: handiest invest what you're willing to lose.

as soon as you've got decided the amount of money you are setting into bitcoin, says finman, keep it there, while nevertheless intently watching the market in case an obvious higher foreign money comes alongside.

"i think it is nevertheless a safe desire," he says.