CZ, the CEO of Binance, said in an AMA on Monday that most people should not invest in the crypto market right now but should continue to hold instead.
With all the uncertainty facing the crypto market currently, it probably isn’t a good time to be buying more crypto unless the buyer knows exactly what they are doing.
So says Changpeng Zhao (CZ), CEO of Binance, who was giving this type of advice in an Ask Me Anything (AMA) session which went out live on Twitter on Monday.
It does seem slightly odd advice from someone who gets their business from people investing in crypto, but it must be said, given the drama unfolding in the sector right now, the advice is sound.
Crypto ‘degens’ would probably say “buy the dip”, which has been the mantra in crypto for many years, as bitcoin always climbed inexorably upwards.
Nevertheless, CZ was in the mood for giving what did seem to be some sensible recommendations. He said:
“You should not invest in crypto if you’re using money that you need for next week or next month, you should only be using discretionary cash that you don’t need for a long time,”
The head of Binance went on to talk about “high volatility” and the current “unpredictableness” of the market. His view was that this was not a good environment for inexperienced traders to be entering the market, or to be buying more crypto.
“Unless you’re very experienced, very mature, very confident, and can handle the risk, I would recommend most people just hold for this period of time,”
Also on Monday, CZ announced that he wanted to put an “Industry Recovery Fund” together in order to help stronger crypto projects that were going through a liquidity crisis. He promised to inform the community on further developments as time went on.
CZ also wrote in a tweet:
“Crypto is not going away. We are still here. Let’s rebuild,”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.