Two Big Lessons from CZ

in crypto •  2 years ago 

I have to agree with Changpeng Zhao here:

Two big lessons:

1: Never use a token you created as collateral.

2: Don’t borrow if you run a crypto business. Don't use capital "efficiently". Have a large reserve.

Binance has never used BNB for collateral, and we have never taken on debt.

I haven't verified the last sentence, but (1) and (2) are so very true! Just those two rules will also be your fastest possible due diligence - remember that!?

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE BLURT!
Sort Order:  
  ·  2 years ago  ·  

yes I also totally agree with these 2 things. is the market still going to be red in a few weeks?

  ·  2 years ago  ·  

Depends what "red" means to you - everyone has bought at different prices.

Also, nobody can tell you that - I wouldn't rely on anybody's judgment.

What is worth doing is having a 'crypto diary" of everything you do - and why - so you can look back at your decisions. Just because something goes bad doesn't mean it was a bad decision at the time. Don't keep looking at the ATH coz everything will always suck compared to that! lol.

  ·  2 years ago  ·  

hehe I agree in total with this quoted sentences fromCZ, one must be stupid if he would do it, its like placing a nuclear bomb in the backyard of your families home !

  ·  2 years ago  ·  

and yet, nobody listened to me when I'd tell them those two same things when creating their poxy little token on hive or Steem Engine!
Which is why BYT does not pay income in BYT tokens ;-)
And, if not possible to have a large reserve, at least have one with uncorrelated assets.

Indeed, BNB is the closest I've seen to a stock! lol. eg buys back shares (sorry, coins) just before a div ;-) That's not burning tokens, that's just splitting the income two ways.

  ·  2 years ago  ·  

I may be a bit conservative here, but that's just from seeing algorithms both explode and implode - IMO one should design algos that have internal feedbacks to attenuate both extremes.
I guess that's not greedy enough.

  ·  2 years ago  ·  

yes the buy back is an very clever way to "burn" tokens .
What we need are posibilities to trade coins or money in our own wallets so that we don´t have to rely on the exchanges, but until now I did not found any possibility to do so, normaly it must be easy because all is noted on the ledger the chain so one or more confirmations and that´s it, cut out the middle man and you minimize the risk of losses at least for that side ;)

  ·  2 years ago  ·  

something like Metamask or a wallet like Exodus will perform transactions... but have you seen their fees!?

curve.fi is non-custodial ;-) so it can be done.