Binance CEO Changpeng Zhao Offers Trading Tips to Crypto Investors
The CEO of Binance, Changpeng Zhao (CZ) has left tips for the crypto community on how to prosecute the current market rally. On Twitter, as a general rule of thumb, CZ advised his followers to adopt risk management during bull markets, avoid FOMO (Fear Of Missing Out), and not put all their investments in a single coin. Notably, CZ ended his advice with a tint of sarcasm by putting in parenthesis, “Not financial advice”.
In bull markets, adopt risk management.
Don’t put all your investments in one single coin.
(Not financial advice)
— CZ 🔶 Binance (@cz_binance) January 21, 2023
CZ heads the biggest cryptocurrency exchange by trading volume. He is popular for leaving tips on social networks and has the habit of engaging the public over trending issues concerning the cryptocurrency industry. His last engagement was on December 3, 2022, when he addressed the FUD (Fear Uncertainty, and Doubt) around Binance.
In the address, CZ noted that the FUD had nothing to do with the exchange but was motivated by external factors. He blamed users who did not like centralized exchanges and industry players afraid of competition, thereby continuing to lobby against Binance.
4/ Per above, some media gets paid to FUD us. Some are entirely “owned” by a «competitor». Some may wrongly think that we cut off their funding sources (we didn’t, they failed on their own), and blame us, regardless of how illegitimate their funding sources may have been.
— CZ 🔶 Binance (@cz_binance) December 23, 2022
CZ’s latest tip is motivated by the current surge in the Bitcoin Price and the cryptocurrency market. Since the beginning of 2023, Bitcoin price has been on an impressive rally. Despite predictions by several analysts that the bear market had more downward grounds to cover before achieving a bottom, the flagship cryptocurrency appears to have neglected this proposition.
Along with Bitcoin, the rest of the cryptocurrency market has surged, with some smaller altcoins achieving more than double their original values. Under such circumstances, investors may become emotional and decide to jump into the rising trend. Historically, this is the wrong way to play in the crypto market.
Usually, after a significant surge, the market tends to slow down and consolidate. That is when the smart money takes to profit from the rally. Engaging the markets ahead of such periods could be dangerous. At the same time, not joining the trend could mean missing out on the opportunity. Hence, CZ’s tip suggests engaging the market with care and rational thinking. That would pass as good financial advice, even though CZ’z caveat says otherwise.