Bitcoin Forum

Recently, when people are withdrawing their money to personalized wallets, CZ says that  out of these people 99% of them will lose money, as only 1% of the people are capable of handling the non-custodial wallets.

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao (https://decrypt.co/117214/99-people-will-lose-crypto-storing-self-custody-binance-ceo-changpeng-zhao)

He may be right because most people do not understand the risk, if they are not careful they could lose all their crypto.  Some may lose their private keys and others may connect their wallet at scam sites and they will be deprived of their funds.

Education and understanding of non-custodial wallets is necessary.  A lot of people have move funds out of binance recently, lets see if they know how to safeguard their bitcoin/ altcoins in these wallets.

While he has a slight point, I'm really not a fan of the 99% number, knowing how frequently attacked centralized exchanges are.

I think the only case where I'll justify leaving funds on a centralized exchange, is when the holder is a totally technologically-illiterate senior citizen. On the other hand, if the holder is capable of using a smartphone, chances are — he/she is capable of using a Ledger hardware wallet.

But yea, you shouldn't lose your funds in self-custody if you aren't utterly careless.

Quite an outstanding feature, inheriting coins is almost impossible with self custody. Hence offering such a service will open a reason for and reinforce an unending debate in the crypto community; those that promote self custody and those that don't. The opposing sides can backup claims with the binance inheritance features.

On the contrary, however, I'm glad the self custody campaign spreading on social media, forums and some blogs is highly effective. CZ himself is not only worried, but surprised that the people control this cryptocurrency world not just some specific individuals running against the will of the bitcoin creator. Satoshi wishes for self custody, and he must have thought about inheriting coins as well, but if a person passes out the whole community will inherit their coins not just his family.

What will happen to the cryptocurrency community if someone inherits Satoshi's share of bitcoin?

I won't say I disagree with his point because he makes an important point in this case. What is the point of storing your funds in a self-custody wallet when the coin is vulnerable to attack and lost by the owner? People have lost their savings in their personal wallet due to illiteracy and lack of sufficient knowledge about self-custodian wallets. A campaign for it is necessary which in my opinion will reduce the effect of it happening. Also, me seeing this as a favorable speech for people to save their money in his Binance exchange wallet.

It's actually pretty easy to lose a bitcoin wallet even if you're diligent. All it takes is forgetting your password or failing to discover a corrupted backup, and boom - your coins are gone. There isn't a bullet-proof solution that's going to work 100% of the time. Technology needs to take into account that no one is going to be a perfect custodian--ever. You may get lucky and your mistake won't be a costly one, but user error is basically inevitable.

I think that's the kind of mistake you only make once though.  Early on in my Bitcoin experience I made the mistake of thinking that all my coins were held in my wallet so if I had my private key backed up I would be fine.  Then when my computer crashed I learned about change addresses and coin control.  I still have the crashed hard drive with what I estimate is tens of thousands or possibly hundreds of dollars worth of BTC on it.  Maybe someday I'll try and recover it.  The lesson I learned was far greater though.  I think a lot of people have these sorts of things happen, which is why Bitcoin's actual market cap is probably significantly lower than it appears, and also why so many coins never move... 

This assertion can be translated to: "Only the 1% of the people in cryptocurrencies are responsible", which to be honest might be a good approach. Legitimate, crypto bitcoin users are included in that 1%, de facto. So, if by 99%, he means the users who leave shitcoins in his exchange, who buy made-up useless tokens, and who don't know what's the point of cryptocurrencies to begin with? If that's so, I can agree with him.

So, no! Instead of educating newcomers about wallet software, let's just accept they're irresponsible, uninformed, and let's just make them leave their coins to somebody else. Sounds rational.  ::)

Oh C'mon the last person I would like to hear the opinion of on this issue would be Binance CEO, Obviously he would want everyone to still keep money on centralized wallets, truth is that with right education there is just 1% chance you might lose it. And even without education there will still be like only 20-30% of people who would be this foolish to do such a mistake, Obviously the dex wallets should have proper warnings for people and proper instructions in layman languages, I am sure that not 99% of the people are idiot enough to lose their private key in this way.

What about you being the person in place of CZ, you would say more than this since that's the means to your survival and no one can seat down to be watching his business getting collapse right in his presence without finding a solution, the more reason why he made this statement, but we cannot runaway from central authorities and still falls in the hands of centralized exchanges, it makes no difference, not your keys not your coins period.


Thesame risk his own exchange has as well even more higher than having a non custodian wallet, since every individuals will be accountable to bear responsibility to his own wallet.

99% is probably a sensationalist remark just to grab people's attention. In reality, that number would be much, much lower. Although, definitely a point to be made there.

Honestly, using fiat with a bank is probably the best idea for these types of people. There's nothing wrong with that, I do think banks get criticized a lot around here, and while I would generally agree with that. Certain circumstances they might actually make sense, and I think the senior person who doesn't want to take responsibility for their own money, and have scam/fraud protection built in; makes a lot of sense.

I guess he's including people who run exchanges in that figure.  After all, they arguably have the largest quantity of bitcoins in "self-custody".  If we think broadly about the term, that's exactly what exchanges do.  All funds deposited belong to them (users are just unsecured creditors).  They store the private keys for all those bitcoins.  Exchanges are quite literally doing self-custody.  And they don't have a very good track record.  No wonder he doesn't think ordinary people can do it when all of his contemporaries are clearly so abysmal at it.   ;D

Try convincing them to store their Bitcoin with another exchange; its not going to happen. Wallets on an exchange should be a thing of the past now. There's been multiple discussions over the years about it, and I'd agree. It just doesn't make sense. Exchanges should be designed in such a way that you can't store anything on their platform. It's very likely that people start moving onto peer to peer exchanges with the constant downfalls of these centralised exchanges.

However I would only trust my personal non-custodial wallet rather than having to keep my funds in a centralized wallet. 99% Centralized wallets are more vulnerable to hacks

And only a fool could lose the private key in their wallet containing their own funds

I think that's a little unfair. Many people lose passwords, banking details. The only difference is there's a safety net with fiat. I imagine a lot of the Bitcoin that was in wallets in the early days has been lost due to mismanagement of their private key. Especially, before Bitcoin made it into the mainstream spotlight, and didn't balloon in price.

I'd like to think that most people now know the importance of safeguarding the private key, but the reality is a lot of people are likely very lapse about it. Just as they're with other things when it comes to the security of it.

Yeah, 99% is a bit self-serving, because there's going to be a lot of business in custodial services once they've milked institutional custody (and Quadriga tells us there are still plenty of businesses doing self custody as DooMAD says).

Definitely have said so myself that it's not for everyone -- in which case, it's independent money and not so much Bitcoin that's not for everyone. Nothing wrong with that, but people should be able to make that choice, and have the awareness necessary to make that choice.

Wont be surprised that CZ would really be having those words considering that he owns Binance which is a centralized platform which most people been using up and since recently there's a huge pull out of funds

out of these exchangers then it isnt really that surprising that words would be coming out from his mouth but it is really just to exaggerated.He shouldnt really make himself that too obvious
that he's bit disappointed on what currently users been doing.

Well, he couldnt blame it out considering on what recently happened on FTX which it is really just normal to have those doubts and lost of trust with these platforms
which it is really just normal that they would be freaking out and pulling their funds out of exchangers.

If except it is send to a wrong wallet which also is a mistake that can meet anybody whether to send to decentralised, centralised and personal wallet, the mistake can happen. It is better to keep coins in your personal wallet if you have not expose wallet address in public, hackers is what I think can be challenge for personal wallet.

CZ is promoting centralized exchange for his business benefits.  I don't agree with the 99% statistics.  This is just an exaggeration.  I still think that the number of people who lost money in exchanges is far more than the number of people who lost funds in self-custody.

So my take on this is don't believe someone who has an ulterior motive when stating something.  In this case, CZ wants people to believe what he stated just to have people who move out of his exchange to redeposit and trust their funds to exchanges.  Just check how perfectly this statement timing is done to persuade or advise people to just let their funds sit in exchanges.

Funds in centralized exchanges are also vulnerable to attacks, but not just that, they are vulnerable to hacks, misappropriation, confiscation, inside job, total loss due to govt clampdown on the exchange, etc; CZ knows funds in centralized exchanges aren't safe, but he has said this to convince the unknowledgeable to continue 'banking' with him and Binance.

Funds in self custody are safe so long as the owner is responsible enough to protect it, that is the only 'vulnerability' with self custody, you just need to learn how to store your money, no worries about confiscation, inside job, or other things that cause loss of funds in centralized exchanges, so between these two, it is obvious the choice people should go with.

He make sense and we've been telling people that it's best to keep their crypto assets to a non custodial wallet, wherein they have the full control of their funds.

He said that personally after knowing that people are withdrawing and sending it to another exchange after the Binance FUD has been spread. Well, we need more CEO that are honest but not only when they're attacked.

Is this fancy wording? Almost 100% will lose some money due to fees (excluding miners).

I'd put the figure at below 20% losing all the money they send in the first transaction due to anytbing from malware to lost passwords/nmemonics.

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99% of investors in crypto since 2017 have probably lost money due to a hack or an inside job where the exchange goes offline - there are indirect results like crashes too that can take out people's funds as well as the hack of bitfinex and the mismanagement of ftx.

It may not be 100% but it is just saying that most users will lose their funds one way or another by trusting these centralized platforms.
One should take care of his own funds by using noncustodial wallets where they have full control of their keys.
I believe each one of us may have lost something from these trading platforms, like you can't get out anymore your small funds.
So yes, there are other situations that you may consider looking at when you use centralized platforms, not only hacking or inside job events.

Who make sense? Binance CEO is not encouraging people to a self custody because he thinks people are too imbecile to secure their own funds.


Well of course he need to protect his business but he should not be the one to say that 99% of people will lose crypto in self custody because his exchange has been hacked and so is his created BNB .  So when it comes to protecting funds from hackers, I think CZ has no say about it.

We already know that some people cannot take care and keep safe of their coins. The amount of bitcoins that has lost according to research is much. That is why most people use exchanges. While some don't even know that there is anything called non custodial wallet.
What CZ said is true but he over said it in a way that it will attract attention. Meanwhile the fund moving that is happening, so many people will lose their coins to scammers.

I think CZ is right, some people don't know how secure their coins in a non custodial wallet address, I always encourage people to always read about wallet security before storing their coins their. Wallet is different from exchange that you can easily click on forgot password and you will retrieve your password back if you lose your password to the exchange.
Immediately you lose your private key to your wallet, then your funds are gone already because I don't think their is anyway you can recover your private key. Everything is not about withdrawing your funds to your non custodial wallet, but we have to learn about how to secure our coins whenever it's in our wallet.

when talking about loss, all places have the potential to cause loss, in a self-custodial wallet, you will lose crypto due to the carelessness of the user who doesn't store the private key properly so that it cannot be opened and stolen by others or there are some events that cause a self-custody wallet controlled by someone else, and most often their device is broken and doesn't have any backup. but storage on centralized exchanges also comes with a risk of loss as was the case with FTX and some past centralized exchanges like Mt. Gox and others.
CZ gave a statement that made the 99% reluctant to use Binance, but that percentage is too exaggerated, not everyone has the same carelessness. those who lost simply lacked education in properly storing assets in a self-custody wallet.

Some people does not constitute 99% so he is wrong. Even majority does not mean 99% of users.  I understand why he made a public statement because he is losing huge amount of funds that should had been kept in his exchanges.  The statement of CZ means he is somehow worried that his client ends up withdrawing their fund making his business lost millions of dollar profit.  So it is normal for him to encourage people to put their trust on exchanges.  It is his business he is promoting after all.


It is the same when an exchange where your fund is kept got hacked.  Binance is just lucky that their previous hacked is just a minor one that they can reimburse client of the losses but what if it became a major hack where almost all funds is drained.  Do you think Binance can afford to reimburse all their client's fund?  I think no.  I would rather lost my coins in my own fault than letting others fault to make me lose my money.

Right? If you ask me I will say that is a strategy to bring people who transfered their Bitcoin out of his exchange back

Can you imagine what nonsense he is saying, only the dumbest people will still leave what they have on exchange, how long do they say if you have no access to your keys then you have no Bitcoin.

People who are too lazy to study about wallet security will only loss what they have especially when they lost their keys and sees phrase, it is not a wise decision to send coin back to Binance. Don't support it. He is a liar how can he say 99 will lose what they have, that can happen but only when you don't tell a close and trustworthy family member about what you store just if you want to die.

if that is the case then wouldn't it be wise to keep your crypto on centralized exchanges? so if you forget your password or lose access to your email account, they can help you out?

He has a point because many of us are still uneducated when it comes to keeping their assets to a non-custodial wallet. Well, the recent FTX exchange issue gave fear to many people on holding their coins in centralized exchanges thus they decided to switch using a wallet where they hold their keys. But probably many of these users who pull out their funds on Binance didn't understand the function and risk of using a non-custodial wallet. The reason why it's important for us to educate ourselves on how to properly secure our wallet especially our private keys. Anyhow it's still more risky to keep our coins in centralized platform due to hacking and the fact that they can confiscate our funds and for some other reasonings.

Not if you are really careful. Obviously there isn't a 100% guaranteed solution, but storing your wallet backup on multiple locations alone makes the chances of you losing access to your funds really really slim.

As self custody has been the message recently, the awareness about how important safety is should also be raised. People stand a higher chance of loosing their crypto especially at the early stages of self custody, but not 99%, that percentage sounds over exaggerated. Only someone who is not smart will not be extra careful now that he knows that his crypto is their self custody. True that there will be more scams targeting self custodians, there will be some victims but people are bound to learn because it is something important regarding their investments.

I think after FTX insolvent case, many users are withdraw their coins from centralized exchange including users who leave their coins on Binance. Since CZ also use users funds to make more money e.g. lending, trading, risky investment etc, he's worried if all of Binance's users withdraw all of their funds, it could be a boomerang for him. So he's talking non sense in order to gain people trust and leave their money on Binance.

Well you better tell that to Apple, because they are planning to roll out seed-phrase-like technology to encrypt their users' iCloud data.

So if 99% of people will lose access to their iCloud, then that's good news for Linux (and Microsoft). :)

   - Holding bitcoin or any cryptocurrency in any of the non-custodial wallets is not a bad thing especially if we know it is safe. Whatever Cz said, he has a point, it seems that what he wants to convey to long-term investors is that no matter how much time is spent waiting, there is no certainty as to when it will happen.

I also noticed that what he wanted to convey in that article is that it is still good to put the community's crypto assets in the custodial wallet, but the only ones who will benefit greatly from what he says are the centralized-based platforms, that is the truth.

actually there is no term for losing crypto in self-hold or hold.
because an investor or trader who holds their assets when crypto prices fall, they will not lose the crypto they hold, but only the estimated price will decrease.
investors who experience losses from declining asset prices, if they are still able to hold on and hold it, there is still a high possibility that one day when the market is bullish they can recover losses and even make profits.

Let's make it simple the only thing CZ was trying to say was "99% of you cannot keep the funds save so let's (centralised exchanges) save it for you. He might be right about people been careless and losing it but I will prefer to take the Blame or hold my self responsibile for any loss rather than somebody. Moreso if the funds gets lost in exchanges due to hacks or stuffs like that will there be refund? So its all risk and I will prefer myself taking them.

CZ is just concern about the recent huge withdrawals of funds from Binance by investors. He should first of address the 2.1bn saga with FTX and tell us maybe the victims will get there funds back then we can at least talk about his transparency

Oh please. He is obviously the wrong person to listen to when it comes to where you should or should not store your crypto. He advocates for a centralized exchange. A concept which is backwards and should not exist when it comes to decentralization. I certainly will not be listening to him or any other CEX CEO in matters concerning where/who I should or should not trust with holding my money.

And where did he get the number 99%? Not only is it obviously wrong, its also manipulative. As if he actually did the math on that instead of pulling a number out of his behind.

Never trust an exchange with your money!

CZ can't say otherwise. It is convenient for him that people trust the exchange. Had he been elsewhere, he would have said otherwise. This is his business and nothing more.
As for users who will not be able to manage their funds by keeping them in their wallets, they can be metaphorically compared to people who cannot drive a car. People have to agree with the rule that if you can't drive, you can't drive, and you will bear the consequences. If a person loses his keys and passwords from his wallet, it falls only on his shoulders.

He is right to some extent but don't get fooled by his hidden motive under the statement with evil face saying keep your funds with us.He has put forward 99% of people losing funds in self custody and I would say 100% people losing funds if they store them over exchange like CZ owned so make the choice.When you have responsibilities of keeping your funds safe you should be extra careful in taking all the security steps and it's not wrong in saying people are ignorant in these matters ending up losing their funds so they need to have proper knowledge and guidance on that part.

Another marketing horror story to attract more customers, and nothing more.

This 99% amount seems totally farfetched. It looks like CZ is butthurt, because many people are leaving his centralized custodial exchange and choosing to keep their crypto in cold wallets. Other crypto exchange CEOs might follow his example and start acting butthurt in the next few months. ;D
This is basically the same as claiming that 99% of the people will lose their paper cash, if they decide to keep their life savings inside their house. Complete nonsense.
The actual amount might be around 30% of all crypto users(assuming that the vast majority of crypto users are still quite unexperienced). It's still a big number, but it's not 99%.

CZ was trying to play some kind of mind game with us, though there is an iota of truth in what he said but he exaggerated it to a high degree. Even if I may not agree with your 30%, I also do not agree with CZ's 99%. In the absence of exchanges, above 50% of people will lose their money. Yes I said above 50% but it should not be above 70% . It is only a few number of people who also are experienced in the industry that can safe keep funds in the cold wallet. Why the number will increase more than 30% is because of the number of newbies entering the market yearly. Newbies are set of people that will be the most victim of fund loss. However if everyone decides to use cold wallet, at a point we will get used to it and the amount of losses will reduce.

CZ is just fighting for his business, I know he just want everyone to leave their coin on exchange, which is very risky, I think it's a bad idea to leave coin on exchange, you leaving coin on exchange then you are not in control of your money and incase anything happen to the exchange then your money is at risk.
I don't know maybe you are referring to my comment as nonsense? if you read my comment you will notice am not encouraging anyone to leave their coin on exchange, CZ is right that people that are transferring their coin to a non custodial wallet are going to lose their coin but CZ saying 99% will lose their coin is wrong, he is just exaggerating, I can't say the percentage that will lose, but definitely people are going to lose money.

If you can read my comment again I said everyone should know about wallet security before transferring coin to non custodial wallet. Some newbies don't even know what private key is, they believe they will just create a wallet and that's all. I always encourage people not to keep their coins on exchange but we should learn about wallet security first before sending coin to non custodial wallet.
You can just quote me in anywhere I said people should send their coins back to binance, I think you should always read and understand a post first before making comments, i said CZ is right because if we have to be honest, lot's of people have lost their coin before because they lose access to their wallet private key and am sure people will still lose that was why I said we should all learn about wallet security. If you are already holding your coin on a non custodial wallet, the only thing you should do is to copy and secure your private key in a safe place(where their is no internet connection), and avoid connecting your wallet to websites.

You see most comments are not as you think they are. Sometimes, some comments are made just to get some certain sets of people get frightened a little so as to make them do some thing or retract their actions which in one way has affected something somehow related to whom ever has made that comment or in favor of the person that made that comment.

 In the case of cz, I think this comment is technical and looking at some days past, there have been outflow of funds and assets out of binance in high volume for which cz himself confirmed that upon the issue of cz and binance to be investigated by us prosecutors.

He just might be right in his own comment because not every body is careful and smart in handling their assets and funds in their own various private wallet. While some are not good at proper safe keeping of keys, some are not wise enough to create a special wallet for other activities online.

In all, I think cz is right but to that 99% as he had said is not agreeable to some certain extent. Not all person's are the same. Therefore that percentage he mentioned is not factual. I think he just needs to prove his claim if he says 99%.

CZ will always say that because exchanges don't want you to withdraw your assets to a custodial wallet. Bitstamp has almost begged thier users in the email to come back and trade. But then CZ is also right about a few people finding it very technical in backing up and importing wallets and so on.  Keeping the seed in a safe place is easier than importing.

CZ has some point in stating it and is somewhat real for some people who are new to the crypto world and have no knowledge about holding and keeping their crypto. But what I see in his statement is he wanted us to keep our crypto in their platform and feel that we are secured, that is a kind of trick.
But I stick to this " not your keys, not your coins". We are entitled to keep our coins in our controlled wallet/s, not just in these centralized exchanges. I understand the risk but I see a huge risk in using their wallet as storage. We are not sure if they will give back our money if they get scammed, or if the worse is to freeze our account.

He's logically correct, but his figures are exaggerated that's for sure. While not very many people know how to keep their wallets secure, centralized exchanges/custodial wallets are also being attacked for most of the time. This is why it's also important for people looking to invest in cryptocurrencies to learn to handle their own coins as much as they can before they send that $ into their exchange accounts. It feels even better to handle your own coins in your own wallet, with the certainty that no one will ever get those from you except for a hacker due to your own carelessness.

First of all, we must not forget that we are talking about people who are +18, with rights and responsibilities, everyone at that age and in these times of access to information should know what they are doing.

 And in reference to CZ's comment, I think he should give users who remain on his exchange 99% of his earnings and he can keep the 1% that will surely give him a good life because it is a good slice of money, by the way, that its 1% be BNB and to the resident users of its exchange, BTC.

I wonder if CZ's statement was just to scare investors who moved their assets to non-custodial wallets or if it really happened to most investors. However, investors who intend to move their assets to non-custodial wallets should learn how to protect their wallets from being targeted by hackers.

And if, after this, many people lose their assets because their wallets were hacked, it means that what CZ said is right and makes those investors huge losses.

For all those who still think that CZ is a positive person and that their funds are safe in his company, think twice after this statement. Reading between the lines, he called 99% of his users incompetent fools, and he also supports the idea of some kind of crypto bank, which when it comes to Bitcoin is beyond all reason.

If you still haven't changed your habits, maybe today is the day to show that little communist bastard that he's wrong - withdraw all your funds to non-custodial wallets.

so im not shocked that the number is above 50% of people that cant self-custody effectively. but i think 99% refers to the number of people that may lose 'some*' value of their hoard. where as the ability to self custody is more like 30% as oppose to 1%

*some value: nearly everyone has lost a few fiat pennies down into the void of their sofa cushion or the pavements of their town
..
it requires education to learn how to secure crypto properly. and from reading the thousands of users posts on this forum(supposed technically aware) of people. i always bang my head at the multitude of people that just cannot even be bothered to learn and research, and just want answers spoon fed to them or just go with whatever lame thing their friends have told them

I don't believe I will follow through with the CZ plan, even though wallets have their own risks that are typically dependent on the user in the event of losing your private key or connecting your wallets to scam sites, which is why you must conduct your own research before beginning the fundamentals. In my opinion, leaving your money in an exchange carries a higher risk than using a wallet, hackers frequently launch attacks on exchanges, and the events surrounding FTX should serve as a cautionary tale. Knowledge is power this is to avoid losing your funds.

He's gravely misquoted on this one. Although the numbers are speculative, and of course dull in estimation, it is sharp in essence. There's truth to the statement that most people will end up losing their wallets at some point in time, self-custody wallets that is, and if you're not a wary person it could be you. In my opinion he's not selling the idea that everyone should put their money into centralized exchanges like binance, but to be at least wary, and impose contingency plans for when you really lose your wallet. I've been in the crypto industry for a while and I've seen and witnessed people around me lose their self-custody wallets, or have those hacked because they neglected important information on a public space. Lesson is that be more smart, create safety backup plans. protect yourself. I've seen some people place their cold wallets on a safety deposit box, or anything secure for that matter, that could work.

What he said also makes sense, if users are not careful or do not know how to take care of their non-custod wallets, they are very vulnerable to attacks. But I also wouldn't agree if we put all our assets on centralized exchanges after what happened to FTX. CZ also cannot guarantee that binance will be absolutely safe.

This is not a reason to listen to CZ's statements and immediately move your crypto to Binance or other exchange. As easy as it is to lose access to your wallet, storing crypto on exchanges is also a bad decision. People need to educate themselves about owning crypto currencies to avoid getting into trouble with a forgotten password or a corrupted backup. Otherwise, why use crypto currencies if you are ready to lose your independence by putting your savings on the exchange wallet. It becomes meaningless. If you want to use crypto and have the freedom to dispose of it as you wish, then storage on the exchange is not acceptable.

99% is a bit of an exaggeration, but he was right when he said that someone would lose money by storing assets in a non-custodial wallet. As we have also seen, many threads asking about how to recover the private keys when they create the wallet and not store them afterward. It can be said that many people when participating in the market, are only interested in how to make a profit but ignore how to protect their assets until the incident occurs, they panic.

The best way is to be fully equipped with the knowledge to protect your assets before thinking about making money. Everything is risky, but I prefer to take care of my own assets than let someone else keep them for me.

I am of the school of thought that before self custody there 9s a need for education and preparedness, CZ made a valid point because a substantial number of Bitcoin holder does not know how to protect their wallet and keep their private seed phrase safe.
But even at that, the chances of losing your coin in self-custody are quite minimal, and most self-custody wallets have basic tutorials on how to secure your wallets.

CZ says it is because it's a strategy for him to keep users on a centralized exchange (Binance) so he can say and some people will definitely believe staying at the word 99% is illogical considering it only scares users who don't know non-custodial wallets .
Obviously it is more risky to keep assets on the exchange this has happened many times how can the exchange collapse for example FTX and some other exchanges can this be guaranteed for CZ? of course not right?
So stay on your own responsibility, for private keys that are stored safely, as long as you don't connect your wallet with any site, our assets will remain safe.
Don't be fooled by the influence of CZ, which incidentally is a big person in crypto.

I don't know why I'm finding it difficult to believe. Like how will someone set up a wallet and ignore to save private keys? Perhaps they have no intention of sticking to that wallet and probably will not put huge coins I think. Especially bounty cheaters who indulge in multiple accounts might be a victim but any serious crypto enthusiast will not set up a wallet and not store the keys afterward.

lol  *raises hand*

its easier than you think

CZ might have said the right thing regardless of what was hidden in it. I think someone is still at risk of losing their assets even if they have full custody, and in most cases lose it starts with the user himself.

Of course, your decision must be right. Having custody of our own assets by keeping them in a non-custodial wallet will be our own responsibility to secure them. There are still risks, but there is always a way to take the right safety precautions.

I also somewhat agree with what he said, the newbies will be the ones who are very likely to lose their assets when stored on non-custodial wallets because they do not know how to secure them and lack knowledge about it. But I would choose to keep it in my personal wallet rather than hand it over to CZ or any third party. I trust no one but myself.

I agree that 50% is guaranteed, between people who just lose it, to people who got scammed, and to people who put it on scam places, there are too many people who are willingly giving their money to a thing that steals it. I do not mean like it has to be centralized exchange, they literally invest into scam projects that claim grand stuff and then just steal the money, that is a loss too if you ask me and on the investor.

I know it's not easy but at the end of the day the only great way to make money is to just put it on bitcoin and hold it for a decade, while sounds easy it is somehow hard for some people to follow up and do that unfortunately.

I don't think like that maybe CZ is speaking as it is because some investors really don't know how to store assets in non-custodial and with private keys, the most important thing is where to store private keys is something to pay attention to and don't let us forget or even gone.

As others have said as long as the non-custodial wallet is not connected to unknown sites as long as we don't do that it will still be safe no one can hack it.
This is partly due to being affected by FUD so many are withdrawing their money from the exchange to non-custodial even if investors can use it.

I think, what CZ is doing is countering to the "not your key not your coin" slogan circulating among small and big investors, because it will indeed be detrimental to centralized exchange Binance, from a business point of view the less people use the exchange, the less profit that will be obtained from transaction fees on the platform, of course a businessman will not allow that.
The argument he presented was deliberately made to scare investors regarding security in their own hands so that investors would think twice about leaving the platform.
But from another point of view, I think what he's doing will be in vain, because I think what was conveyed in the space he created reminds investors to back up personal wallet passwords properly and securely.

I can not agree with CZ completely. I have no problem keeping my funds in any centralized exchanges only if they can guarantee the safety of my funds. Which they are not capable of doing.
Rather I will keep my funds in my private wallet. And people are most concerned about money nowadays. So I don't think they will lose the only thing which is most important to them.
Not if they have only one backup. I keep multiple backups for situations like this.

Well, you probably do have a problem with centralised exchanges then. Since, they can never guarantee the safety of your coins, and I imagine in their legal terms they go into this in some depth.

Plus, you'd be surprised how many people lose important things, whether it's from neglect or making their passphrases too difficult. It's a slippery slope, and the majority of people have awful security practices.

cz shouldn't talk much on social media because if he unknowingly says ridiculous things it will have a big impact on his company because the current situation is the bankruptcy of exchanges which is hype on social media twitter and if cz can't control his words then binance customers will  exit significantly from that exchange.

binance has had a pretty strong fud up to this point, therefore he has to be keen to see opportunities to be able to turn things around from negative to positive. if he does something and not everything has to be published on social media.
the market situation continues to experience quite spicy frying at the end of this year.

Stop that bullshit, you can trust him but you can't be 100% sure your assets will be safe on the exchange. After all what would stop him from saying whatever he pleased, that was his right.

I use binance only for deposits, not for storage. I trust them to some extent, not all of them because I care about the risks. Whatever he says may not be entirely true, but a few things can be considered as a guide.

That’s the reality when it comes to those irresponsible owners, chances are they lose more because they can’t safeguard their hodlings. However, if some have been careless, others have been very careful too and cautious of their investments that is why they always prefer a non-custodial wallet as they can take full responsibility on safeguarding their coins in their wallet.

I've never had a problem using a non-custodial wallet and actually feel more anxious using a centralized platform like an exchange because they have way more features than a wallet, as well as can have requirements like KYC, hidden fees, etc.. And I really don't think I'm unique enough to belong in the 1% who can figure things out and not lose access to my money. I have more faith in humanity. Is it just Binance CEO's opinion or is there any research to support the idea that, statistically, the chance of losing access to one's coins is this high and over which period of time?

There’s no use actually having a self-custody wallet when the owner itself is illiterate and still has no knowledge how to safeguard his own coins. And if he’s not ready to entrust his coins to a centralized exchange, it’s better to keep him gain knowledge and develop learnings  so he can be aware on how to make his coins not accessible for hackers. Although for some reasons like senior citizens hodlers, better to adopt a custodial wallet and entrust them with his hodlings.

CZ might have limit his opinion on those uneducated and illiterate people who are currently hodling their own coins, and expect that in the months or years to come, all those coins will be lose or easily gone. And it’s really true knowing they are incapable to manage the security of their own wallet. But for those who are well knowledge and are very careful with their own investments, non-custodial wallets are the best wallets to go.

Even though up to the estimated 99% of people which likely will lose their cryptos in self custody, So is he trying to let us know that storing in a centralized exchange is more safer ?,
Since we can't trust Cex anymore.

In other hands there's still 99% chance too that people will lose their money storing cryptos in Centralized exchange.
 Therefore is better for me to bear responsibility of whatsoever that may happens to my funds in self custody, than to lose it in Cex.  
Centralized exchange is still not a safe heaven.

I can't blame CZ because some people are really incapable in the sense that they are not 100% responsible in managing their own investments. That is why if its the case, we should just rely from the security offered by centralized exchanges and hoping that our coins will not be gone eventually. While this is true for others, but I believe some also have certainly build the knowledge and skills that are basically needed to run successfully a self-custody wallet. As long as people are literate enough, i guess everyone deserves to learn on securing their own non-custodial wallet.

Really that impossible or unlikely for those people who had stored up their coins on a non custodial wallet on ending up on losing their keys excluding some circumstances like head injury or
accidents involved mental condition or something like that which would really be causing up that kind of scenario which is really that something needs to be avoided at all cost.
we've been always suggesting about using non-custodial ones which it is really that preferable.It is really just CZ trying out to say things which are possibly could happen
but to mind off that those words are hiding off some intent that tells us that we should at least consider on storing on exchange platforms.  :D

Also raises his hand

Unfortunately, it's not hard to lose one. You may think that you're keeping perfect track of where you're keeping your private keys or seed phrases, only to realize that you may have actually deleted your backups or thrown them away. I've lost access to wallets when I was younger because I was dumb enough to save the private keys on txt files, many of which were lost during Windows reinstallations or corrupted hard drives. While it belongs in the past and I've actually managed to recover some of these wallets, I still suspect that I may have another out there, lost forever.

It's sometimes easy to let go and not sophisticate the whole idea of backups until it happens to you. About a year ago, my laptop started acting up for no apparent reason; it wasn't detecting the HDD after a long trip. I thought that the HDD got damaged in transit and gave me a huge scare, but it ended up booting after several tries. I didn't have a backup.

Yeah he has a point of doing and releasing that statement.  Not that he is accurate of what he stated but being an owner of centralized exchange, he will lost lots ang possibly goes bankrupt if all Binance users pull out their fund.  So he has a point to convince people so that he can save his business but I disagree that 99% of users are idiots.


Well it is his business so anything he stated has ulterior motive and of course he wanted people to redeposit in his exchange so that his business will continue.

It's also possible that CZ is speaking frankly given that nowadays there are lots of investors trading and keeping their coins in multiple wallets, including keeping them on exchanges. It is these people who will be targeted by hackers if they cannot know the basic steps to secure their wallets from being hacked.

When we want to store those coins in a non-custodial wallet, it means we have to be responsible with security and take good care of them.

That doesn't make sense at all, how can he say that 99% of people will lose their crypto to non-custodial wallets, that's just too much. He is simply concerned that more people will become aware of the security of their assets and prefer to secure their assets in their own non-custodial wallets and that Binance will lose out on their potential customers. And is holding assets on Binance safer than non-custodial wallets? nothing guarantees that.



No need to agree with what he said, he said this in his position as CEO of Binance not as a crypto-enthusiast. His statement was the same as a doctor saying that traditional medicine was ineffective - they would discredit traditional medicine because if they agreed to traditional medicine, they would lose customers - and it seemed that CZ was that person. I'm not one to oppose centralized exchange platforms like Binance, I use them too, but for only a small portion of my assets, I feel safer using a non custodial wallet than having to hand over all my assets to someone I don't know.

LoL maybe that's true but if people stay on the exchanges they will lose their funds anyway: He is like "you will lose these coins one way or another so lose it on us"  ;D He is treating the investors as gamblers and the saddest part is, he might be right actually. Still though, he is not telling this because he is worried about the investors, he is worried about his own business.

If you can't handle your own private key, you shouldn't be owning crypto imo. "Not your keys, not your coins."

Is this a "Bitcoin" problem or a "Human" problem?

The Bitcoin Protocol are pretty solid.... and with a little bit of research, anyone can safely store their coins. The centralized custodial services are run by humans and that human element bring risk to Bitcoin. (Weak code / Internal corruption / Mismanagement)

We humans are also very lazy and forgetful, so we add the human weakness to Bitcoin use. We want convenience with third party services handling our wealth.... but when we are offered the opportunity to have financial freedom, we humans drop the ball.  ::)

It is a human problem of course but that makes it Bitcoin problems ;)

One lesson we always learn about in making consumer products is, if we want people to use them, we must make it easy for people to use.

It is like saying that coding is perfect but humans still have to make the code, so if the language is not easy to learn, it is the problem of the language :)

Since many people has learned from other people mistakes, I guess it will be difficult for people to loose money for non-custodial wallets because they know what not to display in public and what to write out for future purpose. I believe many users understood how to secure and safeguard their bitcoins and altcoins in their wallets because nobody want to lose his or her money in this hardship that is affecting the global economy.

There are limits about how easy something can be made, and at some point the people are the ones that need to adapt to it and not the other way around.

After all a bitcoin wallet is already very easy to use, if you are using a smartphone then installing a wallet is as easy as installing any other app, then once you generate a new wallet you just need to backup your seed words and keep those words somewhere safe, if people are still losing their bitcoin despite how simple bitcoin is to use we cannot blame the developers for making bitcoin too complicated, this is about people not being able to follow some incredibly simple instructions, and we must hold them accountable for it.

Isn't this pretty funny?
When people suffer from the collapse of a competitor's service, then CZ says:
"your keys, your coins" ^[1]

When at this time his company is also concerned, he explained contradictory things.

So the conclusion is, "Experience teaches more than theory."
Keep in mind that Binance also has a “non-custodial” wallet, if CZ doesn't get rid of it soon then he teached bullshit about 99%.


1. https://www.coindesk.com/markets/2022/11/13/binances-cz-pushes-for-self-custody-trust-wallet-token-soars-80-to-record-high/

This is a narrative that CZ and all the big exchanges has to claim because they do not want to see people withdrawing their funds all of a sudden which can actually collapse their entire business. Majority of the users in this forum has a pretty clear idea on how to store their funds in a non custodial wallets, so the theory of just 1% of people capable of handling non custodial wallet is busted. The people who are not aware of that, simply needs to browse around to learn them and it is as simple as that.

This is the most WTF reply here so far. Binance is now getting shady yet you choose more shady exchange such as Hitbtc that known for scamming there user by freezing the account without explanation. You have high chance to lose your money on Hitbtc rather than Binance even in the brink of bankruptcy state.
 

---

How come securing private key is more dangerous than having an account on Binance that is prone to phishing and security breach from inside job? Those 99% figure is the typical CZ bullshit hype post to promote CEX.

I agree that the number he gave is a bit exaggerated, but there is nothing to blame because he is the CEO of a centralized exchange, and he is just doing what he needs to do, if we sit in the position that we will do the same thing.

It can be said that risk exists everywhere, storing funds on a centralized exchange, we do not have full access to our assets. But if we leave them in a non-custodial wallet, if not stored carefully it also leads to loss.

I don't know how many assets you have but it looks like you're just a holder so there's nothing wrong with not using centralized exchanges or finance. But for many traders, using Binance is a must, they have no other choice. I also don't like to store assets on a centralized exchange because it's like a bank but I have no other solution.

I don't know about bounty cheaters but I think lack of knowledge, newbies, it is straightforward to fall into this situation, they don't know its importance until there is no chance to get it back. Or as I know so far, there are still many cases of storing keys online or on personal computers because they have not thought about their computer having a problem or their email being hacked. Many people never make an offline copy, this can be said to have happened a lot.

You must have read my reply wrongly as I didn't refer to your post as nonsense, we are both saying same things here

CZ has to say all that to avoid people removing the stored coins on Binance.

It all depends on people then they shouldn't be too lazy as they can do a bit better by storing the seed phrase they have in places they can easily remember. Reason I keep Binance is just to read daily news and article in the crypto sphere nothing more.

This is really a topic and call for concern because of the recent news with FTX and binance recently which faded FTX out of the market.
The fear of an exchange crashing as made alot of people due to the campaign against centralized exchanges has made alot of people to transfer that holdings to decentralized exchanges for self custody without primary and actual knowledge of what is involved in self custody of cryptos and I'm very certain and also agree with you that most people will lose money while holding in self custody.

I will advise that will advocating for Bitcoin, the knowledge of self custody should be preached more and thought more to ensure safety of coins.

Maybe CZ is right about people withdrawing their money to personalized wallets and maybe not, but from what we can see due to many scams and dramas like FTX people are losing trust in these platforms and this that's not surprising at all, also bitcoin and all the cryptocurrencies are high right investment options for people so when you say many people are losing their money in this market that's not surprising at all, seeing people withdrawing their money out of a platform like binance is another side of the story.

I think everyone who have a decent chunk of money in bitcoin stored in a self custody wallet won't be negligent to lose access to their funds. Maybe some small investors who have few hundreds of dollars in bitcoin won't be so careful like the big investors, so there is indeed a risk they are going to lose their crypto by not storing the secret words and wallet device properly, but they don't correspond to 99% of investors anyway.

CZ tries to spread to crypto community it's dangerous to use cold wallets, while in fact, it's more dangerous to use his services. He is trying to invert the situation on this case.

Tries out to be deceiving eh?
Not that surprising for those kind of words came from an exchange owner or CEO which he would really be going against with those typical cold wallets or something non custodial.
He's just trying out to divert out and its true that its impossible for someone for them to be not mindful into their keys specially if it holds huge amount of coins inside of it?
Its never just that too realistic on such situation or condition which majority of us would really be mindful on keeping our keys safe because we are
fully aware that once it gets lost then we're fucked up.

Of course CZ saying that 99% of people don't know how to handle the wallets is exaggerating, and it's easy to guess why since he runs the biggest exchange in the world. But besides that he's right, I'm pretty sure that probably at least half of the people who buy cryptos aren't able to properly handle a personal wallet.

I will also partially agree with his statement, I have a cousin who just entered the market 1 month ago, and he told me that he prefers using binance to using a non-custodial wallet, he thinks that storing private keys is too risky and too complicated. Although I have explained the difference and the importance of protecting our own property rather than leaving it to someone else to hold, but he still doesn't seem to understand and doesn't envision the importance of being the owner of his property. I don't want to argue with him much, but I hope with time, he will realize the difference and know how to store his assets properly.

Not so sure where did he get this Idea but we are talking about special funds here , do you really think that you and me are part of those 99%? imagine this whole forum in which many are now using custodial wallet will be part of that bit percentage or are we the one that will add to that 1 %?
I will never lose mine no matter what because it is not only me that has the possession .

CZ has realized and sees that a lot of bitcoin and altcoins are leaving his exchange, so he wants to stop that trend in any way possible. Scaring people with information like that is just one method. What he is really trying to say is, please don't withdraw all your coins from Binance. Leave something here. 

He is right that many people will make mistakes that ultimately will result in permanent damage and loss of their coins. But that number isn't 99%. The worst thing is using software wallets on desktops and mobiles that are permanently online and used for everything you can possibly think of. School, work, financials, leisure time, gaming, porn, torrents, social media, etc. Unless you come up with your own system and use different devices for different activities, your chances of messing up are bigger. At least use a separate computer just for your mot valuable crypto and financials.   

Get rid of software wallets on your everyday computers and switch to airgapped systems or hardware wallets and you will be much safer.   

Does he still charge 0.5 mbtc for withdrawals? That's a heck lot of money, and a missed opportunity, I'd say. He processed something like 6B in 3 days? Why not just encourage everyone to prove that his exchange is liquid and he can honour every withdrawal? And keep encouraging people to keep their BTC on their own wallets after trading?

He earns with each withdrawal, so it benefits him more to get people to keep withdrawing after every trade.

Why's he so afraid to make money? Surely not because Binance is... not overcollateralised as promised? Shock!

I think he still is, yes. According to the official source (https://www.binance.com/en/fee/cryptoFee), the bitcoin withdrawal fee is 0.0002 BTC. But just two lines below that, we see an entry for 'BTC(SegWit)' whose withdrawal fee is 0.0005 BTC.

Begs the question, what is 'Bitcoin' and what is 'BTC(SegWit)'. Do legacy addresses belong to 'Bitcoin' and nested/native segwit belongs to the second type? Or does he just consider native segwit as 'BTC(SegWit)' and nested goes into the general 'Bitcoin' category? Who knows ::) I am not sure my Binance account is still active to log in to check. Anyways, I am not going to do that now and from this device.

The second question I would have after looking at their withdrawal data is why would segwit transaction cost more than legacy withdrawals?

At least I will never be part of that 1%  ;D

had been holding my coins in Non custodial wallet but for years? i kept my funds intact and safer , also one of my wallets are being kept by my Wife so at least she will be the one that has full responsible towards that said amount.


and also even if there are some who lose theirs? that does not mean majority will be lazy to keep their wallet safer .

Is it a software wallet on a permanently online device or some other solution? I hope your wife is smarter and isn't a Facebook/Instagram addict like one of my ex girlfriends.

She told me one day that her laptop was acting up and she lost access to get Facebook, email, and a bunch of other things and asked if I can fix it. Turns out she got tricked over Facebook by some fraudulent service to hand over her credentials and was infected with malware in the process. Why? Some other bright friend of her suggested trying out this wonderful new service that shows you which of your male friends look at your pictures the most. ::) In other words, she wanted to find out who besides me is interested in... you know... poking her from certain angles and positions.

I laughed my ass off and she didn't want to admit it because she realized what she did.   

Of course, that's what he going to say because he is merely promoting his company and also they wanted to keep the use of a Centralized wallet because of how the decrease of its usage has been declining these past few days. After the Admin of this community highlighted the danger of keeping your crypto assets in the centralized exchanges, they wanted to fire back some logic but in reality, the admin said the truth and nothing can take you to safety except learning how to use hard wallets and how to keep it safe from hackers.

There you go, even can't promise what official source says. Even at that "low" price it's still over $3 per withdrawal, and I remember the 0.5 mbtc fee was too rich for me (not to mention it gets even higher in congested network periods).

It's all moneymaking, there's no reason he'd not want to earn for withdrawals, and repeated withdrawals.

What else could he be afraid of if not that he doesn't have enough for a true "bank run"?

People are ignorant when in comes to accept their own mistake. And they are happy to blame the others for their mistakes. That's the reason for people like this to get manipulated so easily. And people who know this, they tend to take advantage from people like this.
Even his words are very convincing, I doubt many people will trust his words. After the FTX incident and all this mess in the market, I personally don't trust anyone related to any Centralized Exchanges. 
As he said that people will forget or lose their assets, then how come so many early holders are still holding their assets safely? Doesn't makes sense.

Your cousin doesn't want to go out of his comfort zone to know about the importance of self-custody.  You made the right decision of not arguing with him after all the explanation.  Let his experience teaches him the slopes of cryptocurrency, by then he will acknowledge that you are right from the start.


I think it is more on avoiding the blame of their own mistake that is why they wanted to blame others.  Same goes of not practicing self-custody of their own cryptocurrency.  The don't want to be held responsible and wanted to put the blame on others.

He did say that huh @CZ. I suppose leaving it at centralised exchanges are safe then?
Centralised exchanges can't be half as safe as non custodial wallets. I wonder how people do trust it. The onlyeans to loosing coins from a non custodial wallet is due to a users carelessness. As per either having a bugged device or forgetting of private key or seed phrase and not being private enough as per keys or seed phrase security.

When it comes to centralised exchanges, the only advantage you've got is the password recovery and nothing else. All the above could still play out and even more. Like exchange hacks, mismanagement of funds as seen in FTX, not to mention that, your verified mail address could be hacked, linked and transactions could as well be done from a different device.

I don't want to discredit what his said @CZ but, I'll say users should see it for a warning and apply caution when transacting.

I wouldn't say 99% per se but am I guessing quite a high number of people will most likely misplace their private keys mostly out of carelessness. Who knows this could be one of the reasons why the majority of investors were living their assets in centralized exchange instead of their personal wallets.
Storing your assets in a personal wallet is one part of the risk, other like hack and loss of keys are also major concerns.
 

The fear of losing your keys and therefore keeping your coins on the exchange is simply shifting the responsibility onto someone else. At the same time, you need to understand that this is not safer and this should not allow you to feel that your funds are safe, in fact, these are even greater risks. But people want to believe that the exchange can take care of their coins, they want to believe that if they lose access to their coins, the exchange will help them restore it, this is a big delusion.

And this is just CZ trying to say to crypto enthusiast to put their money on his exchange Lol.

99% is a huge numbers and he is just exaggerating it, of course there are lost bitcoin and crypto but this was long time ago, when people doesn't value them at all. But in the last 5 years, I think investors do know how to protect their self custody wallet, that this is the prefer way of holding our assets, in a wallet that we have total control of. Instead of 3rd party like exchanges that can be hack.

I believe even if the user is illiterate, but always long for the safety of his coins, then he can always find a buddy that he can be trusted who is also good in crypto, to make him a self custody wallet, rather than taking risk from entrusting his coins to centralized exchanges. Otherwise, if he has no one to run to, then no choice but to trust the centralized exchanges but only put the amount of coins enough for his trading activity.

You can't possible know who is holding what, who still has access to their coins, and who has lost their private keys years ago. Unless you see sporadic or regular transactions coming in and going out of old addresses, you can't know. Not everyone who has lost their coins complains about it publicly. And some of those unfortunate ones have surely passed away, been killed, seriously injured, or are otherwise incapacitated to spend their bitcoin.

Forgetting your kids at the park or mall and leaving without them is also a risk. Still, that doesn't stop couples from having kids. I intentionally didn't want to use a worse example.

Of course there are risks involved in self custody of crypto currencies, but there risks in any form of storage. Saying that 99% of the people are going to lose thei funds seems like an exaggeration. How does he even come up with that number, there is no empirical proof for that clima, more of a subjective assessment. Also not sure if the CEO of one of the biggest crypto exchanges is the best person to speak up a gainst self custody. It's good to make people aware of the risks involved in being responsible for your own cryptos, but he obviously has some motivation for people not to store their own coins. It's a lucrative business for an exchange to have the customers leave their coins at the exchange. In the past we have seen big exchanges going bankrupt, resulting in large losses for customers who didn't self store their coins. I personally prefer to be responsible for my own coins, even if that means a little bit more risk of theft.

Using separate computer for cryptocurrency holdings and to manage finance is a better choice. This won't work with every user. Complete control in the hands of the wallet owner makes it more secure. Online wallets are always prone to breach and hacks. Self custodial wallets were easy to use once used to it. For the first time it used to be little difficult, if we weren't good into technology.

I don't know why he intentionally exaggerated that number, but many people say that because he owns an exchange, and if people hold assets in their wallets, he will have no customers. This is not true.
Because even if we store assets on the exchange, they will not benefit. Exchanges provide us with services such as trading, futures trading, mining, and staking...which means that they can make a profit when we use their services.  For holders, the exchange is not necessary, but for a trader, the exchange is essential. He doesn't need to invite us to use their services, but if you are a trader, you will have to find them yourself.

I've done that and never had any issues.

Let's not be paranoid about lack of security in desktop wallets. If you get a ton of malware you're going to expose everything like your online banking and private information.

Most of my coins is on a separate offline computer and on my ledger, but I've also had online desktop and mobile wallets where I kept smaller amounts, like 0.1 BTC or less. I've never had any issues with any of them, never lost anything, never had malware...

You need some discipline online. Don't open shady sites, avoid porn sites with popups and stuff, never install anything downloaded from torrents, use only verified software, don't open suspicious emails, have a good, paid anti virus software and you'll be completely fine using a desktop wallet.
Just don't use that for very large amounts of crypto. If you hold over 1 BTC, get a dedicated offline PC, or a hardware wallet. It's going to cost you less than 0.5% of your money and be a huge safety improvement.

I can't agree with that number. because 99% is too much. even those who use cold wallets actually most of them have sufficient knowledge about crypto. But those who store in Hot wallets, maybe most of them don't have sufficient knowledge about how to secure their crypto assets and how to back up safely. but CZ was right that holding his own also carries the same amount of risk. However, saving on the stock exchange also carries the same risk. so I think 50% is a closer possibility.

I don't think this title thread is appropriate, maybe what is likely to be missing is the value of crypto. Even if they can lose crypto because it is stolen. But as long as they still own the crypto, the asset will not disappear what is happening right now is a drop in value in fiat or BTC depending on the desired pair.
 
Within a few months indeed the occurrence of FTX and LUNA made people paranoid. I think we need to be vigilant but not to be afraid. We just need to be disciplined. There are some people do take advantage of that to further make things worse. When you panic then they will take advantage. It could be that they deliberately made the price of Crypto drop in order to buy more.

The CEO of centralized platforms will say anything just to keep people storing coins on their platforms so they have enough funds to go on with their operation. They know people are getting enlightened on the importance of self custody and that frighten them because when people start withdrawing from their platforms they begin to lack liquidity.
We have to start ignoring all this fake statistics as it's important to note that our assets are more safer when they aren't linked to a centralized sever that can be hacked and our assets get stolen.
Bitcoin was develop to bypass the centralized platforms so it make no sense we publicizing such service as it go against all Bitcoin stand for.

CZ and other vultures want your money just like banks want you to hold money with them and trying to scare people is a strike below the belt. I've always known CZ to be a ruthless businessman without any ethics or morals and he's proving it by trying to scare people and make them lend him money. You could see how he flinched when asked if he could cover all withdrawals if people started exiting his exchange. He's doing fractional reserve like all the rest, just with him it's not as much but IMO people should never store anything on his exchange and get rid of BNB. People are greedy though so I don't expect this to happen.

I want to ask if a trust wallet is a custodial wallet or non-custodial wallet because sometimes I miss understand this custodian wallet and knock on student wallet we do explain so I think with this time I will have a good explanation of what is custodial wallet and the non-custodial wallet

We are in a financial market, and what you say is so normal, we cannot expect that he will make money and give it to us for free. Like you and I enter this market to make money, and if you want to make money, you have to make other people lose. It's the rule of the financial market, so don't blame or hate him, try our best to make a lot of money in this market, that's what we need to do. Don't listen to what he says or anyone else in this market.

Well, they "lose" it for themselves, not for the market. Which means that if you get bitcoin, put it somewhere "safe" and then can't go back in, the bitcoin will be there but you won't have access to it so you lost it. So, it is basically true but you have to take the word for what it is and what it could mean, some words could have multiple meanings and you need to reconsider the situation. At the end of the day, we are talking about a world where things are not as clear as black and white.

I personally believe that most of the coins are already in exchanges, 50%+ must be in exchanges, meaning if all exchanges got together, they could seriously hurt the market or help it all by themselves, that is a bigger issue.

I know that Bitcoin is best kept in my own hands, that is, in a cold wallet. But I still put it in the exchange account. I worry about losing it.