How to Invest in Crypto Like Warren Buffett Does In Stocks

Investing in cryptocurrency is not an easy task to do. This market’s volatility and high risk make it hard for investors to...

Written by Niel Patel · 3 min read >
Invest in Crypto like Warren Buffett

Investing in cryptocurrency is not an easy task to do. This market’s volatility and high risk make it hard for investors to find a way to invest in it. Warren Buffett is one of the best investors alive and one of the richest. His words should be followed. 

Warren Buffett’s investment philosophy can be summarized: don’t just buy good companies, but good stocks. In other words, spend your time studying and researching companies before investing. This can be applied to crypto too!

What Warren Buffett Thinks About Investment in Crypto

His best-known success story is that of the American Express Company, to which he applied his six steps, which are set out below:

  1. Know what you’re doing

Warren Buffett, the famous investor and business magnate has always successfully managed to keep ahead of the curve. His investment strategies are studied by many people worldwide, who want to follow in his footsteps.

He lives by a simple philosophy: “Only invest in things you understand.” This has helped him avoid making costly mistakes and ultimately led to a big success story.

When it comes to investments, Warren Buffett is considered one of the most successful investors. He invested his money in stocks for decades and made billions of dollars from this strategy.

Warren Buffet is also a vocal bitcoin (BTC) skeptic and considers Bitcoin “probably rat poison squared.” Buffett says that cryptocurrency trading is not for him because Berkshire currently doesn’t buy or sell cryptocurrencies, and he has no plans to change this policy.

  1. Be patient

Cryptocurrencies are volatile, but they are not something people should fear; they should buy at lows, sell at highs, and follow the market trend.

Warren Buffet is a legendary investor, also known as the Sage of Omaha, who has made billions by investing in stock for more than 50 years now. He is a long-term investor who invests where he sees value in the long term and does not care about daily volatility. He is a long-term investor because he invests when a stock is low, meaning he waits for the price to be reduced before he invests.

Some people are patient in investing in crypto even as the prices fall. If you’re a long-term investor and follow Warren Buffett’s investment style, sticking with crypto and trading with Bitcoin Smarter might be a good idea.

  1. Go for broad diversification.

Warren Buffett has been successful in investing because he made the broadest diversification possible. To minimize risk, he invests in many different assets, including stocks, bonds, and real estate.

Cryptocurrency has only recently come on the scene as a viable investment option for “regular” people.

It’s no wonder that plenty of people out there want to invest in cryptocurrencies but are still afraid.

There are two main concerns when investing in cryptocurrency: safety and stability.

Safety is a significant concern because cryptocurrency is based on blockchain technology which is not yet mature enough to be considered safe from hacking or cyber-attacks. Stability is also a significant concern because cryptocurrencies like Bitcoin can be volatile- meaning they can quickly lose value or gain it at any moment without warning.

  1. Be greedy, but not too greedy

Some investors take a long-term view on cryptocurrency, just like Warren Buffet does in stocks.

Warren Buffet is the most successful investor of the 20th century. He has a portfolio of about $84 billion and owns stocks like Apple, Coca-Cola, American Express, Exxon Mobil, and Wells Fargo. These companies have been around for more than 100 years, proving that he is an expert at finding profitable investments.

He believes in investing in companies with no debt and enough cash to survive unexpectedly rough times. Cryptocurrency is just like that, except it’s also unregulated by the government and banks, which means different rules apply when trading. It’s not a stable investment but still profitable because of its high volatility and return rates.

  1. Don’t follow the crowd

Warren Buffet has an unparalleled record of finding undervalued stocks and turning them into billion-dollar companies.

Number one Rule: You should not follow the herd – is a principle that Warren Buffet lives by.

The number one rule that Warren Buffet lives by is that you should not follow the herd when investing in something or picking a stock.

The terms “herd mentality” or “following the crowd” refer to when people act together based on what others are doing, often without enough consideration of whether it’s wise to do so, which can lead to a reduced chance of success for individual participants and a collective failure for everyone involved.

  1. Stay focused on your long-term goals

Let’s talk about a few points to keep in mind when investing in cryptocurrencies.

1) Find something that you believe in. Not just Bitcoin. There are a lot of other promising currencies as well, some with different agendas and business models. Ensure that the cryptocurrency you invest in aligns with your goals, beliefs, and standards.

2) Invest within your means and only what you can afford to lose. Warren Buffett himself says, “If I could buy a five-year put on every one of the 500 S&P companies, we would be very wealthy.” When investing in crypto tokens, it is highly advised not to spend money that you can’t afford to suddenly lose or give up without question if it turns out that your investment doesn’t work out as expected, so know your limits and have a long-term goal in mind!


This article is about investing in cryptocurrency like Buffett does in stocks. Buffett has been quoted as saying, “one time I assembled what I thought were shares in a company, and the brochure at the time said the Dow Jones had it at half a billion dollars. I flipped over my share certificate to find it split ten thousand to one. So when the Dow Jones rises 50 points like this morning, I don’t care because I’m too happy.”

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