Changpeng Zhao (CZ), Binance’s co-founder, told his X followers that they cannot build wealth without understanding Dollar-Cost Averaging (DCA), a basic financial term he said too many crypto investors ignore.
The comment followed a question CZ posted two days earlier, asking whether bull or bear markets offer better entry points for long-term holding. His answer favored a simpler, disciplined approach over market timing.
Why CZ Raised the Timing Question
CZ posed the original question on July 24, asking followers directly whether bull or bear conditions suit long-term investors better. The post drew over 1.8 million views within two days, showing how often newer investors ask this exact question.
Crypto markets swung sharply through 2026. Bitcoin spent months grinding through a bear market before recent signs of stabilization emerged. That backdrop likely shaped CZ’s question, since entry timing feels more urgent during a downturn than during a rally.
CZ has his own record of timing missteps. He recently admitted he misjudged the stablecoin market, dismissing it early before it grew past $300 billion. That history may explain why he now steers newer investors toward a repeatable process instead of one high-stakes decision.
What Is DCA?
Dollar-Cost Averaging means investing a fixed amount at regular intervals, regardless of price. The approach removes the need to predict tops or bottoms, since each purchase averages out over time.
CZ’s underlying point was blunt. Investors who skip basic terms like DCA, he suggested, will struggle to build lasting wealth in volatile markets. CZ’s message pushed back against the instinct to time entries perfectly.
The strategy answers a documented problem. Weak buy-and-hold returns among 2025 token listings showed how badly timed lump-sum entries can underperform. Spreading purchases across both bull and bear phases sidesteps that risk, which is why some investors treat DCA as a long-term retirement strategy rather than a short-term trade.
DCA’s biggest advantage may be psychological rather than mathematical. Regular, automated purchases limit the emotional decisions that often accompany sharp swings, whether markets grind lower or turn toward a new rally.
Some traders currently point to early bottom signals as reason for optimism, while others stay cautious given how long the downturn has lasted. Either way, CZ’s simpler approach offers a middle path that does not depend on guessing which camp is right.
Whether the current stretch counts as bear or bull remains debatable. CZ’s advice suggests investors do not need to settle that debate before they start buying.
