Changpeng Zhao does not advise cryptocurrency amateurs to invest in digital assets now

Changpeng Zhao, CEO of cryptocurrency exchange Binance, believes that the difficult period the cryptocurrency market is currently going through is not the time to invest in digital assets, especially for beginners. During a Q&A session on Twitter, Zhao urged inexperienced investors to refrain from investing until «the turbulence subsides.» The Binance CEO advised to invest only the funds that an investor can afford to lose.

«You shouldn’t invest in cryptocurrencies the money you need to live on for the next week or month. You should use extra funds that you won’t need for a long time, perhaps several years. It is very difficult to predict what will happen on the market, we are expecting a period of high volatility. So if you are not very experienced, not very confident, and cannot manage such risks, I would recommend waiting,» Zhao said.

The head of Binance emphasized that users can continue to trust the cryptocurrency exchange, as Binance has no loans, does not issue loans on its platform, and does not owe money to anyone. In addition, the exchange does not use customer money to generate additional income.

«If all clients withdraw funds from our exchange, we will simply close the platform. We have many other profitable business lines,» Zhao emphasized.

Changpeng Zhao believes that with the development of the DeFi sphere, centralized exchanges will not be needed. However, simple and reliable self-storage solutions should be provided so that the vast majority of ordinary people can use them.

«Binance is not dependent on technology. We’re not trying to centralize everything and attract all users. If you understand decentralized exchanges, use them,» Zhao summarized.

As a reminder, the CEO of Binance announced the creation of a new fund to restore the cryptocurrency industry, which will help troubled companies. According to Changpeng Zhao, the largest exchange will help really important and honest projects that have found themselves in a difficult situation after the recent collapse of the FTX cryptocurrency exchange.