99% of People Will Lose Crypto in Self Custody

[raumonds]

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

[davis196]

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.
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%.

[KingsDen]

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.
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.

[Issa56]

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

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.

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.

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.

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.

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.

[CryptSafe]

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.

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%.

[cabron]

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.

[Kelvinid]

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.

[dothebeats]

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.

[famososMuertos]

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.

[michellee]

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.

[Lucius]

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.

[franky1]

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.

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

[RockBell]

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.

[panganib999]

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.

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.

[S A KHAIR]

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.

[m2017]

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.

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.

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.

[Iranus]

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.

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.

[Odusko]

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.

[ajiz138]

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.

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.

[Yawa2020]

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.

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.