Kevin O’Leary, the well-known Shark Tank investor, has some urgent advice for those new to Bitcoin and the world of cryptocurrency. Speaking recently on Fox News with Lara Trump, O’Leary outlined five important warnings for anyone looking to dip their toes into the crypto market. His insights, delivered at a crypto bar in New York City, provide valuable guidance for investors who are just beginning to navigate the volatile world of Bitcoin and digital assets.

1. The “Crypto Cowboy” Era Is Over

O’Leary started his interview with a strong statement about the shift in the cryptocurrency landscape. He referred to the previous era of unregulated crypto activity as the “cowboy era” and emphasized that it is now over. He explained that many high-profile figures from the crypto world, such as Alex Mashinsky from Celsius and Sam Bankman-Fried from FTX, have faced serious legal consequences for their actions. As a result, O’Leary predicts that we are moving toward a more regulated environment where the days of unscrupulous entrepreneurs are behind us. With growing government oversight, he believes that Bitcoin will become a more legitimate and secure investment option.

2. Crypto Will Be the Economy’s 12th Sector

According to O’Leary, cryptocurrency is poised to become the 12th recognized sector of the economy, alongside industries like IT, healthcare, and finance. He explained that, just as cryptocurrencies like Bitcoin disrupt traditional financial systems, they are now starting to be seen as integral components of the broader economy. He noted that the Trump administration’s potential embrace of crypto would help it gain widespread adoption. By adding crypto as an official sector, O’Leary believes it will become a part of all industries, impacting sectors far beyond just finance.

3. Trump’s Policies Will Accelerate Crypto Adoption

O’Leary was particularly enthusiastic about the potential impact of the second Trump administration on the cryptocurrency industry. He argued that Trump’s government would be the first to fully acknowledge and embrace crypto as a critical part of the U.S. economy. O’Leary believes that Trump’s leadership could fast-track the development and regulation of blockchain technologies. With clearer regulations, O’Leary anticipates that Bitcoin and other cryptocurrencies will become mainstream, attracting more institutional investors and fueling further innovation.

4. Holding Bitcoin Yourself Is Risky for Newcomers

For those new to Bitcoin, O’Leary strongly recommended using accredited and regulated exchanges like Coinbase. While many experienced crypto investors choose to store their Bitcoin in decentralized wallets, O’Leary warned that this can be risky for beginners. He explained that without proper knowledge of security measures, new users are vulnerable to hacks, lost passwords, or misplaced keys, which could result in losing access to their holdings. By sticking with a regulated platform, new investors can avoid these dangers and have a higher level of security for their assets.

5. Start Small and Learn Gradually

Finally, O’Leary advised crypto newcomers to start small. Instead of rushing in and investing large sums of money, he recommended purchasing a small fraction of Bitcoin, such as one-third of a coin, and treating it as a long-term investment. O’Leary likened Bitcoin to “digital gold,” emphasizing that, like any investment, it requires time and patience to understand. He stressed that Bitcoin is not a get-rich-quick asset, and it’s important to learn the market’s fluctuations before making larger investments.

O’Leary’s key takeaway for new investors is clear: start with small investments, do your research, and avoid rushing into volatile markets. While Bitcoin holds tremendous potential, it’s crucial to approach it with caution and a long-term mindset. With growing regulatory clarity and increasing adoption, Bitcoin’s future looks bright, but it’s important to navigate the market with care.