Nithin Kamath – the co-founder of Zerodha (India’s largest equity brokerage house) – shared his tips on savings and investments with MoneyControl this Diwali. Being the 86th richest man in India according to Forbes, he has definitely managed to grasp an understanding over how people should manage their finances in the most rewarding way.
Interestingly, this successful personality does not believe in crypto as an asset class. He goes on to say that the first rule in managing money is that if something appears too good to be true, then it most likely is the case. He further goes on to say that there is no such thing as easy money. When a person claims that they are able to make a certain amount quickly, one must almost always assume that there is a catch involved somewhere. This theory extends to not just crypto or stocks.
He validates this belief with an explanation that crypto is, unbeknownst to many, an extremely risky and unregulated territory. For this reason, he cautions the crypto enthusiasts out there to venture into the world of cryptocurrency one step at a time. Nithin advises that it’s important for a beginner to undertake any crypto investment with only a small portion of their personal net worth or capital. He compares the process to that of investing in stocks and further cautions that it’s necessary to diversify the risk and to steer clear of concentrating on just a single asset class.
Nithin goes on to explain his personal relationship with crypto. He states that he currently has zero exposure to crypto – and also remarks that he never understood when it was $500 for Bitcoin and he still doesn’t understand it when its value has skyrocketed to over $60K today.