Changpeng Zhao self-assesses that going all-in on Bitcoin at the beginning of 2014 was a mistake: does not recommend this strategy

Binance founder Changpeng Zhao shared his experience of bottom fishing in a tweet response today. He stated that buying Bitcoin at the beginning of the bear market in 2014 was a wrong strategy; although the outcome was not bad, he does not recommend it. (Background: Bitwise's top 10 predictions for 2025: BTC, ETH, SOL to reach new all-time highs, the number of countries holding Bitcoin to double, 5 crypto unicorns to IPO...) (Additional context: Bridgewater's Ray Dalio: I will 'invest in Bitcoin and gold' away from bonds to cope with the risk of significant currency devaluation) In the financial market, there is a well-known rule for making money - 'buy low and sell high'. However, this rule is easier said than done, as no one knows where the market's low point is, and no one knows where the market's high point is. On social media, some users have stated that every person they know who became wealthy through cryptocurrency did two things during the bull market: They bought on dips, and they took profits along the way up. This seemingly basic financial knowledge, akin to 'every sixty seconds, a minute passes,' drew a response from Binance founder Changpeng Zhao (CZ). Everyone I know who got stupid rich from crypto did two things in a bull run: 1. They bought dips. 2. They took partial profit on the way up. That's it. — Lady of Crypto (@LadyofCrypto1) December 10, 2024 CZ self-assesses that buying Bitcoin at the bottom in 2014 was a wrong decision. CZ commented below the tweet: I finally understood how I did it all wrong. In 2014, I bought Bitcoin at the beginning of a long bear market. I didn’t have more fiat to buy dips, so I couldn’t; there were no profits to take (long bear run), so I couldn’t. It worked out in the end, but I do NOT recommend my strategy. Additionally, CZ mentioned that he only bought Bitcoin once during the bear market. From CZ's comments, it can be inferred that he might have 'gone all in' on Bitcoin at the beginning of the 2014 bear market and did not have extra funds to continue buying at lower prices. I finally understood how I did it all wrong. I bought bitcoins at the beginning of a long bear run (2014). Didn't have more fiat to buy dips. So can't. No profits to take (long bear run). So, can't. Worked out in the end, but I do NOT recommend my strategy. — CZ BNB (@cz_binance) December 11, 2024 CZ's 'bottom fishing plan' is estimated to have yielded 15,000%. Let's review: after Bitcoin surged at the end of 2013, its price showed a continuous downward trend in 2014. It is estimated that CZ bought Bitcoin between January and March 2014, with an average price of $650. After that, Bitcoin dropped to a low of $172, and it wasn't until September 2015 that Bitcoin began to rise again. During this bear market, CZ's Bitcoin position may have dropped by as much as 75%. Furthermore, if we calculate based on Bitcoin's current value, if CZ had continued to hold this asset until now, his return could be as high as 15,000%. Related reports: (Breaking) Microsoft board rejects investment in Bitcoin. Users: Will regret today's mistake in ten years. Trump hopes Bitcoin will 'break $150,000' early in his presidency: The recent price increase is thanks to me. (Breaking) Microsoft board rejects investment in Bitcoin. Users: Will regret today's mistake in ten years. "Changpeng Zhao self-assesses that going all-in on Bitcoin at the beginning of 2014 was a mistake: does not recommend this strategy". This article was first published on BlockTempo (the most influential blockchain news media).