Changpeng Zhao (CZ), founder and former CEO of Binance, shares a financial tip on how crypto investors can build wealth.
According to an X post yesterday, the Binance founder criticized the focus on short-term gains in crypto. He emphasized that many investors have spent huge amounts of money searching for small and quick profits.
Notably, investors who utilize this strategy are often referred to as ‘degen.’ The search for quick gains drives them to invest in anything that looks promising. However, they completely ignore the risks associated with the tactic, which sometimes lead to substantial losses.
CZ Tips for Wealth Building
According to CZ, crypto investors should focus more on ethical teams that are committed to developing long-term utility projects. Ethical teams are more likely to focus on sustainability, innovation, and real-world impact over short-term hype.
Interestingly, CZ has always been an advocate of teams building long-term innovative solutions. Last year, he encouraged the broader crypto community to prioritize developing practical blockchain applications instead of meme-related projects.
In his recent tweet, the Binance founder emphasized that ‘big money is built slowly with stamina.’ This underscores the importance of patience, persistent effort, and long-term strategy in wealth-building, particularly in the crypto market.
His commentary suggests that investors should prioritize fundamentally strong assets developed by ethical teams instead of chasing small and quick profits.
In 2023, the Binance founder asserted that gains accumulated over the long term are much greater than short-term gains.
Total Crypto Daily Liquidation Nears $630M
CZ’s recent advice comes as the market continues to experience significant downturns. Notably, the price of Bitcoin crashed from a 24-hour high of $86,000 to $80,052, marking a 6.91% decline. This dip, which had a ripple effect across the broader crypto market, left many short-term traders with huge losses.
Data from Coinglass show that $628.86 million has been liquidated from the market over the past 24 hours. While long positions account for $534.70 million, short positions registered $94.16 million in liquidations.
Despite the increased volatility in the market, most investors holding utility tokens are optimistic about making substantial returns on their investments in the long term.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
