The head of the Binance cryptocurrency exchange, Chang Peng Zhao, recommends that traders trade less and walk more to avoid constant stress. With this advice, he turned to users in Twitter.
If you feel stressed out during every dip, you probably should not trade much, or at least change your trading strategy. Maybe just #HODL?
Not the best advice for our business (trading fees), but probably good advice for many new “traders”.
Not financial advice.
– CZ 🔶 Binance (@cz_binance) April 22, 2021
Users reacted positively to CZ’s statement and consider this strategy to be quite acceptable. User CH Quah wrote:
“During the fall, just buy and hold (#HODL) any coin at @binance. They have a strong team behind them, who have already helped to audit projects before listing, so it’s safe for newbies … don’t choose a small exchange. ”
Zhao previously wrote that he does not use fiat currencies for hodling at any time. He returns to them only in specific situations when it is necessary to make a payment that is accepted only in fiat. Even so, it converts only the amount of the required payment into fiat.
Hodlers bring cryptocurrency to exchanges
At the same time, stocks of ETH tokens on the Gemini and Kraken exchanges are rapidly decreasing. According to the popular data aggregator Glassnode, the stocks of ETH coins on the leading cryptocurrency exchanges fell to 14.6 million, or about $ 29.5 billion.
This is a very noticeable drawdown compared to the end of 2020, which was 19 million. The last time stocks were reduced to such levels in September 2019. After that, the market consistently grew for a long time, although it experienced local ups and downs. The fact that coins have begun to actively settle in places other than trading platforms suggests that investors expect to benefit more from hodling coins than from selling them.