CZ’s Comment Reignites Debate on Market Psychology

Changpeng Zhao, better known as CZ, stepped back from daily operations at Binance but still influences crypto discussions. His latest remarks triggered another round of debate across the industry. He said that it is better to sell when the market shows maximum greed and buy when the market shows maximum fear. His statement touched a nerve because traders see signs of rising greed across several major assets.

Many traders follow technical charts, volatility indicators, or macro trends. Yet, a growing group uses the fear and greed strategy to decide when to enter or exit positions. CZ’s words gave new weight to this approach because he built Binance during some of the most emotional phases in crypto history. His message arrived at a moment when crypto market sentiment seems to climb at a fast pace again.

His comment also came as traders worry about unstable price swings. Many try to understand how emotions shape the next move. This makes trading psychology insights more important than ever. CZ did not force his opinion on the market, but he highlighted a mindset that many traders ignore when emotions peak.

JUST IN: Binance Founder CZ says “Unpopular opinion, but it's better to sell when there is maximum greed, and buy when there is maximum fear.” pic.twitter.com/opRl44sfz2

— Whale Insider (@WhaleInsider) November 29, 2025

Why CZ Believes Emotional Extremes Shape Smarter Trading

CZ shared this view many times in private conversations with founders and traders. The idea centres on a simple truth. Traders often lose focus when the market moves too fast. They ignore risk when they see constant green candles. They panic as soon as red candles stack on their charts. The fear and greed strategy helps them avoid emotional traps.

He believes greed blinds traders because profits rise too fast in euphoric phases. People chase random assets, follow influencers, or open leveraged trades. They do not care about risk until a strong correction hits. CZ watched this happen during the 2017 rally, the 2021 cycle, and even smaller bull phases. He saw how sharp emotions destroyed good portfolios.

How the Fear and Greed Strategy Helps Traders Stay Grounded

The fear and greed strategy works because it forces traders to step back from emotional noise. They do not follow hype or panic. They focus on the real behaviour of the market. They track liquidations, exchange inflows, funding rates, and long-short ratios. These metrics reveal what traders feel before they act.

This strategy tells traders to reduce risk when greed climbs too fast. It tells them to look for value when fear rises. The market often rewards the patient trader who buys during fear and takes profit during greed. Many traders studied this approach across different cycles. They found that it aligned well with historic price patterns. They also saw it support long-term portfolio growth.

What Traders Can Learn from CZ’s Message

CZ did not ask traders to copy his strategy. He asked them to think like rational investors. He encouraged them to question every decision. He asked them to understand greed during rallies and fear during corrections. These ideas help traders build stronger habits.

The fear and greed strategy teaches patience. It teaches discipline. It helps traders avoid cycles of panic and euphoria. It also helps them understand how the market works beyond charts. Many traders see these ideas as boring, but they produce better long-term results.

Final Thoughts on CZ’s Take on Emotion-Driven Markets

CZ shared a simple message that carries huge value. He highlighted how emotions push traders to act fast. He reminded them to stay aware of greed and fear. He encouraged them to control reactions and focus on logic. These ideas help traders grow in a market that tests emotional strength every day.