Changpeng Zhao (CZ), the founder of Binance crypto exchange, has again recently doubled down on the buy-and-hold trading technique. Chanpeng Zhao considers the buy-and-hold approach as a timeless crypto trading strategy. In his official social media post, CZ asserted that, although the crypto traders use many strategies for trading, there are just a few that can actually beat this approach. As per him, this is a simple technique and can be significantly helpful in terms of returns.
CZ Recommends Buy-and-Hold in Comparison with Complicated Trading Strategies
CZ’s priority for the buy-and-hold trading strategy is crucial because of his deep engagement in developing one of the leading crypto exchanges. Particularly, over several years, crypto traders have tried high-frequency trading, algorithmic bots, arbitrage models, and leverage-based strategies for gains. Nonetheless, CZ pointed out that only a few of the respective trading methods are capable enough to consistently outcompete the long-term efficiency of the buy-and-hold plan.
Apart from that, this strategy is also relevant in an industry that experiences massive volatility. In this respect, provisional price fluctuations often lead to huge emotional trading moves. This often paves the way for considerable losses on the hands of novice investors. On the contrary, holding crypto assets during market cycles permits investors to leverage wider adoption trends, network effects, and technological development.
Keeping this in view, CZ reaffirms the idea of patience to take a competitive advantage in the case of crypto investment. Hence, the HODLers, those who hold crypto assets for long terms, have gained noteworthy gains during key bull cycles. Specifically, Bitcoin ($BTC) and $BNB have presented substantial returns, with CZ’s comments echoing the historical patterns.
Binance Founder Himself Buys and Holds Crypto to Make Returns Over Time
According to Changpeng Zhao, he himself has been leveraging the buy-and-hold trading strategy for a long period. Additionally, this technique reduces barriers for newly entering traders. Moreover, rather than using advanced trading instruments or mastering several technical indicators, traders just need to purchase leading crypto assets and keep them for long periods to generate big returns. Overall, CZ’s insight plays the role of a reminder that patience and simplicity can still be fruitful in crypto trading.
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