Crypto Traders Are Losing To Long Term Investors, Binance’s Changpeng Zhao Says
The crypto market looks good today with the most important coins out there trading in the green.
At the moment of writing this article, Bitcoin is also trading in the green and the king crypto is up by more than 3% in the past 24 hours. BTC is currently priced at $9,172.49.
Active crypto traders have lower returns than hodlers
Changpeng Zhao the chief executive of crypto exchange Binance said that internal data is showing that active crypto traders have lower returns than investors who are buying and holding for the long run.
Zhao hopped on Twitter to address the subject.
In a new series of Tweets, Zhao replies to a follower’s query on the best approach to crypto investing.
Not financial advice, data shows more holders out perform traders. But holding is hard. Trading makes you feel like you are in control. Holding feels passive.
— CZ Binance 🔶🔶🔶 (@cz_binance) May 24, 2020
The online publication the Daily Hodl mentions a 2019 study on the equities markets that found similar results – this revealed that over a period of 15 years, a passive investment strategy managed to outshine the active trading.
Bitcoin’s best 10 days of the year
Regarding the crypto markets, Fundstrat’s Tom Lee said that most of BTC gains come in the crypto’s best 10 days of the year – this is highlighting the difficulty in timing in the BTC market.
“Before everyone starts freaking out whether crypto winter is over, remember the Fundstrat ‘rule of 10 best days.’ [Minus Bitcoin’s] 10 best days, BTC is down 25% per year. All the gains come in 10 days. Are you that good at trading?” he said.
Check out the graph above.
Recently, we’ve reported that while Bitcoin is trading at around $9k, small investors are buying.
It’s been revealed that the number of addresses holding at least 0.1 BTC rose to a lifetime high and reached 3,053,004 – this was happening last Friday.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.