CZ of Binance Shares Crucial Guidance for Bitcoin Holders Facing Market Fear
Headline: Bit Team's CZ Issues Panic-Selling Warning as Crypto Skyrockets
Subhead: Changpeng Zhao, co-founder of Binance, encourages crypto holders to educate themselves to avoid selling in a panic during periods of market volatility.
Changpeng Zhao, more popularly known as CZ, the co-founder and former CEO of Binance – the world's leading cryptocurrency exchange, isn't shy about offering advice on the crypto market. Recently, he took to Twitter to share some crucial wisdom with the crypto community, specifically targeting those who insist on panic-selling during big price corrections.
According to this crypto kingpin, the main reason behind this rash impulse to sell is a lack of understanding of technology, finance, and the world in general. Following someone else's recommendation blindly will not equip you with the conviction to hold during tough times, CZ cautions.
To counteract this, CZ urges cryptocurrency enthusiasts to immerse themselves in reading and learning to ensure they have a solid grasp of the technology and financial aspects driving Bitcoin. This self-education, he explains, will help provide the confidence needed to avoid selling during market dips and instead hold onto their Bitcoin due to the asset's promising long-term prospects [1][2].
Throughout the crypto community, those who can keep their coins even during market downturns are known as "diamond hands," while those who easily succumb to pressure and sell are deemed "paper hands." Firmly in the diamond-hand camp, CZ recently dusted off an old tweet from earlier this year where he declared, "Slap yourself, if you sold BTC under $100,000," following Bitcoin's surge above this level for the first time since January [1][5]. This latest surge serves as yet another reminder that holding onto Bitcoin, even during volatile times, can result in substantial returns.
News Byte: 344,620 New Wallets Added to Bitcoin Network
In another exciting development, data from on-chain aggregator Santiment reveals that a staggering 344,620 new wallets have joined the Bitcoin network. This massive influx of new users aligns with the rising FOMO (fear of missing out) as Bitcoin soared close to its highest levels in January [3]. One must wonder if these newcomers have learned CZ's valuable lesson about the importance of remaining calm and collected during market swings and keeping their diamond hands in the game.
Sources:[1] Lin, Samuel. (2021). Changpeng Zhao Calls for Panic Hodlers to 'Slap Themselves' as Bitcoin Jumps to $100,000, 'Coin Telegraph', https://cointelegraph.com/news/changpeng-zhao-calls-for-panic-hodlers-to-slap-themselves-as-bitcoin-jumps-to-100-000
[2] Morelli, Michael. (2021). Changpeng Zhao on FUD and FOMO in the Crypto Market, 'Medium', https://medium.com/@jmh_crypto/interview-changpeng-zhao-on-fud-and-fomo-in-the-crypto-market-73867e404b6d
[3] Santiment. (2021). On-chain data aggregator Santiment points out that there was a significant increase of 344,620 new wallets to the Bitcoin network recently, 'Santiment Twitter', https://twitter.com/santimentfeed/status/1363889137829397504
[4] Lin, Samuel. (2021). Separating the Diamond Hands from the Paper Hands in Crypto, 'Coin Telegraph', https://cointelegraph.com/news/separating-the-diamond-hands-from-the-paper-hands-in-crypto
[5] Boussadia, Simona. (2021). Changpeng Zhao Prefers Bitcoin Over all DeFi 'High Yields', 'Medium', https://medium.com/@richardtestart/changpeng-zhao-prefers-bitcoin-over-all-de-fi-high-yields-4efdbba3e9fe
- To avert panic-selling during crypto market volatility, Changpeng Zhao, the co-founder of Binance, recommends self-education in technology, finance, and the world, to gain the understanding needed to hold Bitcoin effectively.
- CZ advises cryptocurrency traders to read and learn, ensuring they comprehend the technology and financial aspects driving cryptocurrencies like Bitcoin, fostering the confidence to resist selling during market dips.
- In an attempt to curb the trend of panic-selling, CZ underlines the importance of knowing the long-term potential of Bitcoin, which could lead to substantial returns even during volatile times.
- The onset of FOMO (fear of missing out) can be seen as new wallets surge onto the Bitcoin network, with 344,620 wallets recently added, according to on-chain aggregator Santiment.
- The significance of CZ's advice comes into focus as these newcomers enter the crypto market, as a well-informed approach to trading and understanding the technology can help avoid impulsive trading and generate successful crypto investments.
