Binance founder Changpeng Zhao (CZ) shared his thoughts on how to build wealth in cryptocurrencies. He claims that too many investors are singularly focused on making quick money without seeing the bigger picture.
Quick Money Comes with Big Risks
As CZ elaborated, crypto traders are likely to invest in projects which promise faster profit. These meme coins and low price tokens are invested in by these investors who are also referred to as “degens” without any research. Clearly, some do get lucky, but many people also lose a lot of money on account of scams or market crashes or even poor investment choices.
CZ clarified that chasing short term profits is dangerous. The crypto market is almost unpredictable, and you could see Bitcoin and other crypto’s prices going down at once, resulting in numerous losses of many traders. Bitcoin recently dropped from $86,000 to $80,052 resulting in nearly $630 million in losses across the market.
The Right Way to Build Wealth in Crypto
CZ advises investors to rather seek out teams that do things ethically while also building useful and long term projects instead of chasing quick profits. Blockchain technology taken by ethical teams that are working on it is bothering actual problems, as opposed to only making people look up to it.
CZ believes that real crypto wealth comes slowly. He believes that “big money is built slowly with stamina,” meaning patience and making smart decisions are the keys to success. He also proposed to make crypto tokenomics better in order to prevent scams. For example, 10% of the project’s tokens should be available at first, the remaining must be unlocked following certain conditions.
Crypto Should Be More Than Just Hype
But CZ also warned that too much hype results in worthless projects and market crashes. Rather than this, he advocates for blockchain applications to be meaningful. In his opinion, cryptocurrencies such as Bitcoin will become a daily thing like currency one day in the future.
His message is simple: crypto should be about long term growth, and not making rapid cash. But with better choices, investors can protect themselves from any eventual losses and to further strengthen the crypto industry.
