Binance CEO: Crypto Traders Lose To Long-Term Investors, Industry Still In Its Early Stages

Binance CEO: Crypto Traders Lose To Long-Term Investors, Industry Still In Its Early Stages

Changpeng Zhao, general manager of Binance cryptocurrency exchange , said internal data shows that active crypto traders have lower returns than investors who buy and hold for the long term.

In a new series of Tweets, Zhao answers a follower's question about the best approach to crypto investment.

“This is not financial advice, the data shows that more holders outperform traders. But the outfit is difficult. Trading makes you feel like you are in control. The outfit is passive. "

A 2019 stock market study found similar results, revealing that over a 15-year period, a passive investment strategy has systematically overshadowed active trading. Regarding the crypto markets, Tom Lee of the research firm Fundstrat said that most of Bitcoin's earnings came from the best 10 days of the cryptocurrency of the year, which highlights the difficulty of synchronizing the BTC market .  

“Before everyone starts to panic if the crypto winter is over, remember Fundstrat's 10 best days rule. [Less Bitcoin] 10 best days, BTC is down 25% a year. All winnings arrive in 10 days. Are you so good at trading? “

Zhao also says he believes crypto investors have time on their side and shouldn't worry about missing the boat.

"Everyone I met who got into crypto thought they arrived too late, without exception, myself included, up to 5 years later. I hope the same will be true in 2025. We are still at the start of the match.

No financial advice. And don't trade if you're not a trader. hodl. “


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