Binance Trading Rules | Fear, Uncertainty, Doubt (FUD) About Binance - Minimum Trade on Binance
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Binance Trading Rules | Fear, Uncertainty, Doubt (FUD) About Binance - Minimum Trade on Binance

written by John Murphy | December 21, 2022

The cryptocurrency market has been challenging thus far; each day brings new surprises for investors. It is fair to say that it is yet to reach its potential. Despite being highly volatile, experts tip it to become the future of finance. However, it has its fair share of turbulent waters; most recently a wave of fear, uncertainty, doubt (FUD) About Binance (the world’s biggest New York crypto exchange) is riding a wave like this.

The business is facing multiple controversies, including a potential investigation for money laundering. The adverse effects have already started pouring in as there is a steep rise in customer withdrawals.

Furthermore, the entire crypto world is shaken by the allegations and faces a severe loss of trust from investors. When the crypto market started adopting to new year hype, fear, uncertainty, doubt (FUD) about Binance shook it.

Although this is not the first such happening, let us develop a sense of why it hit with FUD.

The gossip – what is being said?

All that said is not true, but if many are saying, there must be something in it. The clouds of uncertainty started flooding in when CZ tweeted about their recent proof-of-reserve report as “Audited proof-of-reserves.”

Unlike the report stating otherwise, he implied this amounted to “transparency.” With investors closely monitoring the situation, withdrawals from the exchange increased handsomely, thus causing compounded concerns.

What is at stake?

Binance is the leading crypto exchange, with a trading volume of $7.7 trillion in 2021, with an average daily trade volume of $15 billion. Therefore, its fall in FUD is a severe concern for all stakeholders.

Although it is unlikely that the company will reach its demise, talk is still around about what would happen if it did. And to be honest, it does not look good. Few experts have started relating Binance with FTX

However, most of the talk is concerned about the fear, uncertainty, and doubt within the crypto market. Based on information from the market, almost everyone related to the crypto ecosystem is at stake.

From investors to miners, competitors are all facing a foggy future. The impact of FUD concerning Binance has more significant implications as there is a lot at stake.

Is Binance too big to Fail?

The global financial system has already experienced failure during the 2008 slump. It was mainly due to the inability of some of the largest financial institutions. The jolt was so big that governments had to step in to bail them out and stop a domino effect that threatened to engulf the entire global economy.

The major slide led to a new term, “too big to fail.”

The term “too big to fail” depicts a firm that is so large that its failure will devastate the economy. Furthermore, related industries and governments believe that any effort to save the company is less destructive than the damage done by letting it go under.

In simple words, the magnitude of loss would be so immense that the amount recovered from the sale of the company’s assets will not cover its debts. For instance, if this company is an investment bank, its clients will not get their money back. It is subsequently causing a contagion effect that would put other banks with fewer funds and cause a significant economic crisis. 

Similar is the case with Binance; because of its central position, any disruption in the flow of funds could potentially threaten the entire crypto market. Additionally, many retail investors would prefer to stay away from cryptocurrency altogether. Similarly, institutional investors will also move their investment out of crypto to other safer industries.

Managing Fear, Uncertainty, and Doubt

Despite all doubts about Binance, the right strategy can help you safely sail through this rough wave.

Here are a few tips for handling market fear.

  • Self-custody

Having an account storing digital currency can immensely decrease the fear of loss. The FTX fallout has left many investors scratching their heads in vain.

Trust wallet and SafePal are two of the best platforms offering self-custody.

  • Diversify investment

It is always helpful when we put only some eggs in one basket. So, nothing wrong with extracting funds out of crypto and investing them in the more safe industry.

Further, you can quickly achieve this by running an internal self-test on your financial position. It is never too late to reassess and protect yourself.

  • Live cross-chain

Just like diversification of investment is vital, similarly storing digital tokens on multiple blockchains can help to avoid uncertainty.  

Another method of achieving this feat is to utilize native tokens. 

  • Staying updated

The cryptocurrency market is highly volatile and ever-changing, so stay in touch with the market. Always seek regular updates to avoid any significant losses. A seasoned investor would always remain in contact with substantial changes.

You can achieve this by following experts on social media accounts.

Frequently Asked Questions

Is Binance going to bankrupt?

Not really; Binance, one of the world’s largest cryptocurrency exchanges, can bounce back from recent FUD. Many experts are optimistic about it doing well and coming back stronger.

Who is affected by fear, uncertainty, doubt (FUD) about Binance?

Since Binance is a powerful platform, each stakeholder of the crypto metaverse will feel the heat of Binance’s FUD. Therefore the entire crypto world is eagerly awaiting its outcome.

Should I pull out my investment from cryptocurrency?

It all depends on your acceptable risk level. The best way is to monitor changes in the market closely, get professional advice and make a move accordingly.

Parting Thoughts

Binance is recently going through a troubled phase as its financial report is judged as neither transparent nor an actual audit.

Thus, there is a sense of fear, uncertainty, doubt (FUD) about Binance. At the same time, many investors have withdrawn their cryptocurrency from the exchange. However, only some crypto gurus trust the Binance platform and expect it to recover soon and well. Therefore, an uncertain situation engulfs each individual associated with cryptocurrency.

It has further fueled the discussion, and many more users are expected to withdraw their funds.

The tip of the day is to stay vigilant and proactive, keep an eye on the market and make the next move accordingly. 

We hope Binance will bounce back and wipe away all the fear, uncertainty, and doubts.