In recent months, the number of people around the world interested in the crypto world has been increasing. Driven essentially thanks to the immense success of Bitcoin in the markets, multiplying its price several times since last year. But also due to the substantial increase in the price of alternative cryptocurrencies such as Binance Coin (BNB) and Ethereum. For this reason, in the Tweet Today’s Changpeng Zhao advises not to buy BNB if you don’t understand:
Buy BNB for speculation
The crypto market has always been fertile ground for speculation. And it is that, the sudden and spectacular increases in the price of its main cryptocurrencies, lead many people around the world to invest millions of dollars in virtual currencies that they do not know in their entirety. The best example of this being Dogecoin, the prank cryptocurrency that has built a strong community around it.
This, of course, ends up being dangerous for the projects and for those who invest in them. Well, at the end of the day, the best thing for the development of any Blockchain project is the creation of a community committed to its objectives. And it is not made up of users whose only motivation to buy the cryptocurrency is that it has recently risen in price.
For this reason, Changpeng Zhao, CEO and founder of the Binance exchange, comments on his Twitter account that only those who know the project well should invest in BNB. And not just those who are excited about the recent increase in the price of the cryptocurrency.
«Don’t buy BNB if you haven’t spent more than 3 full days learning about it. Its ecosystem is large and it will take you a while to understand. Don’t buy it just because its price has gone up. It is not financial advice».
Thus, Changpeng Zhao warns those who want to invest in the cryptocurrency of his exchange without understanding its operation. Asking that you first take your time to fully research the BNB ecosystem. An advice that not only applies to Binance Coin, but to any cryptocurrency on the market.