Binance’s CZ Says the Risk Isn’t Just in Crypto Investing — It’s Also in Staying on the Sidelines

While stressing the need for risk management, Binance co-founder CZ has introduced a new narrative stressing the upsides of dabbling with Bitcoin and crypto.

Changpeng Zhao, the co-founder and former CEO of Binance, is bringing a new narrative aboard. While some institutions and market participants find the volatility associated with the crypto sector off-putting, Zhao, popularly known as CZ, thinks it is detrimental not to gain exposure regardless.

CZ Preaches Exposure Regardless

In a Monday tweet, CZ acknowledged that although it is risky to invest in cryptocurrencies, not owning Bitcoin could also be a riskier endeavor. Interestingly, this narrative talks up the theory that with significant risk comes great reward.

The crypto sector has observed bad and good days alike. Some have seen Bitcoin and crypto’s fast-paced price actions as a loophole for investors looking for a mild and conservative means for wealth sustenance and growth.

Further, the industry had just fully recovered from trust-diminishing events following the fallout from Terra, Three Arrows Capital (3AC), and, most recently, FTX. These events had image-tarnishing effects on the industry while stressing the need for clear regulation.

Nonetheless, the sector has grown past that stage, surviving the attacks and mending the trust of many. Also, the market has rallied extensively from the lows to current prices, extensively rewarding those who bought on the downside and held on.

Amid the recovery, which has seen Bitcoin transcend its previous prices, CZ has emphasized that not holding Bitcoin is riskier. Considering the asset’s future trajectory and the benefits of having even a small portion, not considering investing would be a generational fiscal misjudgment.

Meanwhile, while the tweet advocated embracing cryptocurrencies regardless of the narrative, it also acknowledged the hazards associated with the sector. Hence, due diligence and personal research play a major role in staying safe in the industry, as with many other financial markets.

Learn to Manage Risk: CZ

Meanwhile, CZ highlighted a few steps to manage risks while investing in crypto. In a follow-up tweet today, he mentioned three questions one should ask when dabbling in the digital asset business to ensure effective risk management.

Learn to manage risk:
1. ask: what is the worst case scenario? if it goes to 0, can you survive? keep your life style?
2. how many times can you afford to try?
3. do you know/understand what you are doing? if not, read/learn. https://t.co/brV7Icbd6a

— CZ 🔶 BNB (@cz_binance) May 20, 2025

First, he emphasized the “risk what you can afford to lose” theory. An important question every prospective crypto investor should ask is what the worst-case scenario would be. Notably, investors should always ask themselves if they are capable of surviving should their investments go to zero.

Secondly, he emphasized another defining question on risk management: how many times can one try while incurring consecutive losses?

Finally, he stressed the importance of learning what you are investing in. CZ noted that it is best to ask oneself if one actually understands what one is doing, as a little knowledge-seeking could change the narrative.

Bitcoin Would Have Proliferated Before Being Deemed Safe

Moreover, Michael Saylor, the executive manager of Strategy (formerly MicroStrategy), recently echoed a similar disposition on the crypto market’s risk.

Saylor, who shares the sentiment that volatility reflects Bitcoin’s utility, insisted that Bitcoin and the crypto market would have reached insane levels before financial advisors start to say it is less risky to invest in or own it.

Specifically, he noted that Bitcoin would hit $1 million before some legal financial institutions deem exposure ok and $10 million before they acknowledge that buying the premier asset is a good idea.

Interestingly, this narrative further stressed the current skepticism around the risks involved with crypto and how it has stood tall regardless. Nonetheless, this paradigm is starting to change as large institutions are beginning to come around.

For context, the $4 trillion asset manager JP Morgan’s CEO Jamie Dimon disclosed yesterday that the company will now allow clients to be exposed to Bitcoin.