You hear it all the time: Put your money to work. But how exactly should you be investing your money? Stocks? Bonds? Funds? Bitcoin?
Mark Cuban weighed in on the topic in a recent interview with Hayman Capital Management founder Kyle Bass, MarketWatch reports. If you don’t know too much about markets, the best way to invest your money right now is to put it in a cheap S&P 500 SPX fund, the self-made billionaire said.
A Standard & Poor’s 500 index fund will hold 500 of the largest U.S. companies in the United States. It offers diversity at a low cost and generally delivers good long-term returns.
Chairman and CEO of Berkshire Hathaway Warren Buffett agrees with Cuban’s recommendation.
And stay the course, even through periods of no returns or losses, Buffett said: “Keep buying it through thick and thin, and especially through thin.”
While the S&P 500 is your best bet, Cuban also told Bass that investing a bit of your savings in digital currencies like bitcoin or ethereum isn’t a bad idea.
He brought up cryptocurrency in another recent interview with Vanity Fair, too: “If you’re a true adventurer and you really want to throw the Hail Mary, you might take 10 percent [of your savings] and put it in bitcoin or ethereum.
“But if you do that, you’ve got to pretend you’ve already lost your money. It’s like collecting art, it’s like collecting baseball cards, it’s like collecting shoes. Something’s worth what somebody else will pay for it. It’s a flyer, but I’d limit it to 10 percent.”
Bitcoin Price Clips $19,000
Bitcoin’s record-setting run took another unprecedented turn on Thursday, as the bitcoin price ripped past $19,000 on cryptocurrency exchange GDAX, leaving a trail of altcoin carnage in its wake. However, the rally was characterized by unusual trading activity, including one of the largest BTC/USD spreads in recent memory.
The breathtaking climb saw bitcoin rise more than $5,000 in a span of 12 hours. The journey from $17,000 to $18,000 took just fifteen minutes, and the leap from $18,000 to $19,000 was accomplished in five. By 11:30 a.m. ET — the end of the surge — the bitcoin price had reached $19,697 and was threatening to crack $20,000.
This ascent left many people puzzled because it was not replicated on other prominent bitcoin exchanges. Bitstamp, for instance, peaked at $15,995, while Bitfinex only made it to $15,700. Spreads between bitcoin exchanges are expected, but this is undoubtedly the largest percentage BTC/USD spread that bitcoin has seen in recent memory.
The spread was so drastic that GDAX traders were paying just $100 less than traders on Korea-based Bithumb, which regularly prices bitcoin at a 20 percent premium over the global average.
Bitcoin Price Plunges; GDAX Goes Down
Immediately after reaching $19,000, the bitcoin price began to plunge, and by 11:55 it had careened down to $15,100. Three minutes later, at 11:58, GDAX effectively went down, moving all markets into “Post-Only” mode, meaning that traders could place limit orders but could not execute any trades. Bitcoin remained frozen at $16,299.
Some observers began to wonder aloud whether GDAX’s system had encountered an error or had been breached by a hacker, but the exchange resumed trading at approximately 12:25 p.m. and the bitcoin price began to recover from the dip that occurred just prior to the outage.
At the time of writing, bitcoin was trading at $16,889 on GDAX — a full $2,000 above its price on Bitfinex. The global average, meanwhile, was $16,096, providing bitcoin with a market cap of $269 billion.