In a short video, CZ, the founder of Binance, dropped three essential tips for individuals new to the cryptocurrency space: prioritize learning, start with very small investments, and diligently manage risks. He emphasized, "Controlling risk is as important as making money," while referring to cryptocurrency as "the new money."
With the current market volatility, evidenced by Bitcoin's 20% dip last month, these foundational principles could prove invaluable in safeguarding investments.
Step-by-Step Roadmap to Smart Entry
The first crucial step, according to CZ, is to dedicate time to learning. He recommends utilizing resources like Binance Academy, a free platform that offers comprehensive explanations on topics such as cryptocurrency wallets, decentralized finance (DeFi) applications that facilitate crypto lending without traditional banks, and other fundamental concepts. This approach encourages a knowledgeable entry rather than speculative trading.
The second tip advises starting small. CZ suggests allocating a mere 1% of one's capital to initial crypto investments. For instance, if one has $10,000, an initial investment of $100 would allow them to test processes like making transfers, securing assets through backups, and understanding yield generation without exposing a significant portion of their funds.
The third key piece of advice focuses on mastering risk management. CZ highlights the importance of emotional control, noting that greed can lead to poor decisions, while fear can cause paralysis. If feeling stressed about market movements, he advises reducing the size of investment positions.
A stark reminder of the consequences of disregarding these principles is the collapse of Luna in 2022, which resulted in the loss of approximately $40 billion. This event was largely attributed to FOMO (fear of missing out) driving unchecked investments. Adhering to CZ's strategy of starting small and capping risks could have potentially mitigated such widespread losses.
A notable trend observed in 2025 was a decline in highly speculative "degen" trading, with a noticeable shift towards educational content among retail investors. Data from Binance indicates a 150% surge in users engaging with Binance Academy during this period. This educational pivot coincided with the approval of Bitcoin ETFs, which attracted more cautious investors to the market.
CZ’s 3 Tips for Beginners: Risk Control Is As Important As Making Money
On January 14, 2026, Binance Founder CZ shared 3 core tips for crypto newcomers: First, prioritize learning, recommending Binance Academy; second, start small, advising to allocate just 1% of funds to get… pic.twitter.com/UWczdtEIoh
— Wu Blockchain (@WuBlockchain) January 18, 2026
Lessons from a Market Veteran
CZ's journey in building Binance into a dominant force in the cryptocurrency industry, navigating through significant events like the FTX fallout and regulatory scrutiny, offers valuable insights. His advice aligns with timeless investment wisdom: knowledge is more valuable than hype. Statistical evidence supports this; studies indicate that approximately 70% of day traders lose money annually, often due to excessive leverage, underscoring the importance of informed trading practices.
However, the unique nature of cryptocurrency requires careful consideration. While the promise of "new money" offers speed and innovation, the ecosystem is also susceptible to scams, with an estimated $4 billion lost to fraudulent activities in 2025. CZ's straightforward tips are designed to empower individuals to navigate these complexities more safely.
Disclaimer
The information provided by Altcoin Buzz is intended for educational, entertainment, and informational purposes only and does not constitute financial advice. The opinions and strategies shared belong to the writer or reviewers and may not align with your individual risk tolerance. Altcoin Buzz is not liable for any financial losses incurred from investments based on the information provided. Bitcoin and other cryptocurrencies are high-risk assets, and users are advised to conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.