Binance founder @CZ has once again raised an issue that sparks controversy in the community. He claims that storing cryptocurrency on an exchange is safer than keeping it in a personal wallet—and he has arguments.
Information about exchange hacks is easier to collect and analyze. Many cases of theft or lost access with self-custody go unnoticed—people just lose money and stay silent. The statistics are also skewed because they include exchanges that have already gone bankrupt, not only those that are operating and compensate users for losses after incidents.
Big platforms have repeatedly proven that they’re willing to take responsibility. Hacks do happen, but users often receive compensation. With a personal wallet, if you lose your keys or send funds to the wrong address—no one will return your money.
Each custody method has its own risks. For most users, the best option may be to diversify funds across different exchanges and personal wallets. Don’t keep everything in one place, and you reduce risks associated with both centralized platforms and self-custody.
$BNB
Information about exchange hacks is easier to collect and analyze. Many cases of theft or lost access with self-custody go unnoticed—people just lose money and stay silent. The statistics are also skewed because they include exchanges that have already gone bankrupt, not only those that are operating and compensate users for losses after incidents.
Big platforms have repeatedly proven that they’re willing to take responsibility. Hacks do happen, but users often receive compensation. With a personal wallet, if you lose your keys or send funds to the wrong address—no one will return your money.
Each custody method has its own risks. For most users, the best option may be to diversify funds across different exchanges and personal wallets. Don’t keep everything in one place, and you reduce risks associated with both centralized platforms and self-custody.
$BNB