Binance CEO recommends starting small with crypto.
With an estimated fortune of $96 billion, Changpeng Zhao, CEO of Binance, participated in an ODDO BHF bank live event to talk about various topics related to the cryptocurrency sector and blockchain technology.
On occasion, Zhao recommended that people should start with little money, allocating less than 1% of their money to know the crypto market and understand how the technology works. His main concern is related to the security of the funds as the individual is solely responsible for his/her crypto funds.
In addition, the billionaire also addressed topics such as NFT, metaverse, web 3, decentralized finance (DeFi), state regulation, central bank digital currencies (CBDCs), transaction scalability, and of course, his exchange, Binance plans.
Start small, then increase your exposure.
When asked about cryptocurrency investments, Changpeng Zhao, popularly known as CZ, was very concerned about the safety of users. He urged newcomers to start with little money until they familiarized themselves with technical issues before allocating more capital to cryptocurrencies.
“The first thing I would recommend for anyone new to cryptocurrencies is to start small. Use less than 1% of your wealth, depending on how rich you are. Don’t put a lot of money into cryptocurrencies at first. The best way to learn is to start with little capital, make transactions, use crypto; without practically doing that, you won’t be able to learn about them. Don’t invest large amounts; there are big security issues you need to be aware of to keep your cryptocurrencies safe. Start small, learn about them and gradually increase your investments if you like this type of investment; not everyone needs to like cryptocurrencies; there are many different investment opportunities globally.”
Continuing, Binance’s CEO also recommended that people must learn by doing their own research and suggest not to invest in projects just because they were referred by a friend or social media influencer.
As for investing in the number of projects, CZ says the fewer, the better. In this way, the investor can better understand what he is doing. This tactic seems to have worked for the billionaire; CZ has previously revealed that he has only two cryptocurrencies in his portfolio and plans to donate 99% of his wealth.
Web 3 and Metaverse
Both web three and the metaverse, Binance’s CEO, stated that they are two terms that still do not have a precise meaning, as each person sees them differently. In other words, there is still no consensus on their definitions.
Regarding his vision, CZ says that web 3 is a decentralized internet with more rights for users, combined with more use cases, mainly with financial integration. As for the metaverse, he explains that some people believe it is related to virtual reality (VR), while others say we don’t need such hardware for any such experiences.
Future of Binance
First, Zhao addressed regulatory issues, reaffirming that they are suitable for the industry. This is in line with his past statements and the hiring of several former US IRS agents.
In response to the question of going public, as Coinbase did through its IPO, CZ stated that “this is not out of the question,” although he recalled that this is a difficult task, everything could change in the future.
When asked where Binance’s headquarters will be in the future, CZ stated that he wants to establish one in each country. As for a global headquarters, Zhao said they are still studying regulations from different countries.
Finally, in addition to already being one of the richest men in the world and with big plans to expand his business, CZ may soon become the richest in the world.