Binance CEO Changpeng Zhao, aka CZ, has been a vocal cryptocurrency participant on Twitter. A glimpse at his Twitter account reveals that he voices his opinion on almost every relevant cryptocurrency topic out there.
Now, especially in a situation where the markets are displaying a rally with Bitcoin and other altcoins gaining double digits, CZ wanted to address some of his risk management tips for cryptocurrency investors.
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Don’t FOMO, says Binance’s CZ
In his recent tweet, he stated that, especially in bull markets, one should adopt risk management. He also stated that one should not invest behind the “fear of missing out” and never put all their investments in one single coin. He also ends the tweet by quoting that it is, “not financial advice.”
This is especially true of the saying, “don’t put all your eggs in one basket.” This is a valid point because if you put all your coins in a single cryptocurrency, and due to some unforeseen event that coin collapses, all your investment is gone. However, if you diversify your portfolio, you have a much better chance of overcoming a difficult market condition.
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The tweet from CZ comes at a time when Bitcoin crossed $23,000 and Ethereum crossed $1660, with both of these coins displaying over 35% gain over the last 30 days, according to CoinMarketCap data.