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Bitcoin : Changpeng Zhao Advises Buying In Fear, Not In Euphoria

13h20 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Bitcoin (BTC)
Summarize this article with:

In a crypto market marked by euphoria and panic, Changpeng Zhao, founder of Binance, gives decisive advice. For him, the best Bitcoin investors do not buy at the top, but in the dips, when fear dominates. A strategy that makes perfect sense at a time when the market experiences extreme volatility. CZ’s words are more relevant than ever for those looking to operate in this uncertain environment.

CZ, in a high-tech office, shows screens displaying the secret strategy of smart Bitcoin investors, while an open door lets in a revealing light. An analyst watches the scene, fascinated by the information and charts.

In brief

  • Changpeng Zhao, founder of Binance, advises Bitcoin investors to buy when the market is going through periods of fear and uncertainty.
  • According to CZ, the best investments are made during moments of fear, when prices are low.
  • Well-informed investors are less likely to sell in panic and can better seize long-term opportunities.
  • Education and a disciplined strategy help investors make rational decisions, even during high volatility periods.

Buying in fear : a long-term tactic

Changpeng Zhao, founder of Binance, shared his strategic vision on buying bitcoin during periods of fear.

In a message posted on X, he emphasized that the smartest investors did not buy at price peaks, but when there was “fear, uncertainty, and doubt”.

Here are the main points to remember from his statements :

  • Buying during periods of fear : according to CZ, those who bought bitcoin early did not wait for record prices. They invested when the market was full of uncertainty, not during euphoric highs ;
  • Fear as opportunity : moments of extreme fear in the market are often when prices are lowest, creating advantageous buying opportunities for cautious investors ;
  • Accumulation in market dips : the strategy is to buy when sentiment is negative and uncertainty is high, rather than being swept up by speculative bubbles ;
  • Support from the crypto community : other influential community members, like Lawrence Lanzilli, emphasize that these weak periods create a strong foundation for future rises, especially long-term.

These points show that CZ’s strategy is based on a simple but powerful observation. The best times to invest in bitcoin are often when the majority is afraid and prefers to sell, because these periods may precede substantial rebounds.

The role of psychology and education in investment decisions

However, buying in fear is not simply a technical strategy. It is also a matter of psychology and education.

For many investors, the idea of seizing an opportunity when the market is in free fall may seem inconceivable, and the temptation to sell to limit losses is strong. This is where education comes into play.

Changpeng Zhao has repeatedly emphasized the importance of understanding not only the mechanisms of blockchain and bitcoin but also the broader economic trends influencing markets. He believes that “education is the key to resisting the temptation to sell during downturns”. Well-informed investors with a long-term view are less likely to give in to panic when the market undergoes a correction.

Currently, as the crypto market goes through a difficult period, the best-prepared investors are those who stick to a disciplined strategy based on solid principles. They are able to see beyond immediate volatility and make rational decisions, rather than being carried away by feelings of fear or FOMO. In short, psychology plays a fundamental role in an investor’s ability to take advantage of opportunities, even when most market players seek to flee.

As the crypto market continues to fluctuate, CZ’s strategy reminds us of the importance of buying in fear rather than euphoria. For him, bitcoin remains a buying opportunity before the next peak, an approach that, if followed with conviction, could prove rewarding for long-term investors.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.