99% of People Will Lose Crypto in Self Custody

[jackg]

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

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.


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.

[TimeTeller]

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

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.


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.

[BitDane]

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.

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.

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.

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.

[rby]

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.

[Issa56]

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.

[kamvreto]

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.

[BitcoinPanther]

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.

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.

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.

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.

[harapan]

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.

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.

[larry_vw_1955]

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.

...

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.

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?

[lienfaye]

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.

[mk4]

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.

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.

[Rruchi man]

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.

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.

[Solosanz]

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.

[NotATether]

‘99% of People' Will Lose Crypto Storing in Self-Custody: Binance CEO Changpeng Zhao

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).

[Mr. Magkaisa]

   - 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.

[cloudfir3e]

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.

[Zaguru12]

   - 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.

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

[goldkingcoiner]

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

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.

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!

[lovesmayfamilis]

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.

[worle1bm]

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.