binance CEO changpeng zhaoPopularly known as “CZ”, has warned users that keeping cryptocurrency in a cold wallet could be riskier than leaving it on a centralized exchange.
What happened“For most people, 99% of people today, if you ask them to hold crypto on their own, they will lose it,” CZ said during a Twitter Space discussion on Wednesday.
CZ was speaking hours after the news broke that he had advised his employees to prepare a “rough” few months, suggesting that practical realities make self-custody of crypto unrealistic for many users.
He explained that his company is “neutral” on users’ preference for how to hold cryptocurrency.
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Strongly supported by CZ Self-custody of assets last month amid the FTX market transition, calling it “a fundamental human right.”
In a later tweet, he supported trustwalletA self-custodial cryptocurrency storage platform Binance acquired in 2018 that “allows you to store your crypto… your keys, your coins.”
However, CZ now appears to agree that a custodial wallet ensures better protection of users’ funds.
“Most people don’t think about backing up their security keys until it’s too late,” CZ said. “Without proper encryption for their backups, they’ll end up writing them down on a piece of paper and their funds will be at risk of being stolen.”
“Worse, if a person passes away without leaving any way of giving access to their next of kin, their digital assets will be lost forever. But, with our standard operating procedure, this is not a problem, ” He added.
This week, Binance experienced an outflow of billions of dollars As investor confidence took a hit from the FTX infection. However, Zhao said the activity was “business as usual”, emphasizing the company’s commitment to providing a secure environment for its customers.
price action: bitcoin BTC/USD At the time of writing, it was trading at $17,667, down 0.50% over the past 24 hours. According to Benzinga Pro data.
photo by Web Summit on Flickr