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What to do in unpredictable market conditions? Binance CEO responds

در شرایط غیرقابل‌پیش‌بینی بازار چه کنیم؟ مدیرعامل بایننس پاسخ می‌دهد

It seems that the domino effect of the fall of the FTX exchange in intensifying the market volatility continues. In this situation, Binance CEO Changpeng Zhao advised inexperienced investors to consider one important issue before investing or trading in the current volatile and unpredictable market.

To Report In a November 14 Space or Twitter audio chat called “Ask Me Anything” hosted by Binance, Zhao said that inexperienced investors are willing to risk the money they need for their living expenses rather than risking it. , expect a turbulent period.

Zhao said:

You should not use money that you will need in the coming weeks or months to invest in cryptocurrencies. You should only use unnecessary cash that you won’t need for a long time, say maybe a few years.

Zhao advised inexperienced investors and traders with excess cash to consider all aspects before using their capital in the market in the near future.

CEO of Binance says:

If you don’t know what’s going on, don’t try to guess what’s going to happen. Forecast [آینده] It is very difficult. We will go through an unpredictable period with extreme fluctuations.

He added:

Therefore, I would advise most people to hold onto their assets during this time period; Unless you are very experienced, mature and confident and can manage your investment risk.

The increase in market volatility comes as FTX’s liquidity crisis has negatively impacted the entire industry; Especially since a number of centralized exchanges have had to temporarily stop withdrawals.

However, Zhao confirmed that there are no such problems with Binance. In response to the question why users should trust his exchange, he pointed to his company’s balance sheet and said:

We have no loans, no debts, and I owe nothing to anyone. Also, we have not given loans outside the platform. Therefore, we never take users’ assets and give them to a third party to manage and profit from them.

Zhao confirmed that Binance also saw a withdrawal of some of its users following the collapse of FTX and several other incidents; The events that led to a decrease in the community’s trust in centralized exchanges.

He emphasized that even if Binance falls, this platform will not prohibit users from withdrawing their funds.

Zhao said:

If all users withdraw their funds from the Binance trading platform, we will only shut down our centralized exchange. We have many other profitable businesses.

Zhao thinks this is entirely possible and predicts that once DeFi applications become mainstream, centralized exchanges may no longer be needed.

He said about this:

If we have a way that allows people to safely and easily hold their assets in their custody, a way that 99% of people can do, there will be no centralized exchanges or possibly no need for them, which is a very good thing. .

While Binance itself is a centralized exchange, Zhao emphasized that the company’s investment partners include centralized exchanges and decentralized protocols to provide choice for users and support entrepreneurs.

Also read: What is a decentralized exchange? + Introduction of the best (2022 update)

CEO of Binance added:

We are impartial to the use of technology; We are not trying to centralize everything or send all users to centralized exchanges. If a decentralized exchange is sufficient for your needs, go for it.

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