- Changpeng Zhao, Binance CEO, says “Don’t over-invest” in Cryptocurrency.
- Zhao suggested users exercise proper risk management of the asset before investing in it.
- He emphasized reducing users’ investment to half if they are not ok to see their portfolio going down to Zero.
Changpeng Zhao, Binance CEO, says not to over-invest in crypto. The statement came in context with the recent downfall of the crypto market. The industry has shown a downtrend in the past 6 months and has fallen significantly from last year’s all-time high.
Founded and registered in the Cayman Islands in 2017, Binance is a cryptocurrency exchange that is the largest exchange in the world in terms of the daily trading volume of cryptocurrencies. It supports the most frequently traded cryptocurrencies.
In bull markets, exercise risk management.— CZ 🔶 Binance (@cz_binance) July 29, 2022
If everything went to 0, will your life still be ok? If no, you invested too much. Reduce it by half and ask again.
Don’t over invest. (Not financial advice)
The platform also provides a crypto wallet for traders to store their electronic funds. The exchange also has supporting services for users to earn interest or transact using cryptocurrencies.
During this period, most investors have lost a notable amount of their investment in the market.
Cryptocurrency has always been an enticing asset from big players to small investors and traders.
It was seen in the past 2-3 years individuals were inclined to it due to the high returns of the marketplace when compared to other investment options.
During a bull market, tokens gave investors massive returns on investment, resulting in amateurs and other individuals showcasing interest in crypto. This made people fall into the trap and not exercising risk management which ultimately caused huge losses in the bear market.
Just in case all your crypto investment went to zero, will u still be ok? If not, it means you have invested enough, and it’s time to rethink again and reduce the investment by half and then ask again.
The motive should be investing with following the proper risk management as per your ability and capability to bear the loss if all your investment is down to zero.