99% of People Will Lose Crypto in Self Custody

[retreat]

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.

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.

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.

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.

[mindrust]

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"  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."

[Kakmakr]

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. 

[slaman29]

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

[Zanab247]

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.

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.

[wxa7115]

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

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.

[rat03gopoh]

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/

[eaLiTy]

~
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.

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.

[Wapfika]

You can even lose money using Binance. Now what, should we stop using it too? I will just continue to use what I like, and the Hitbtc wallet suits me completely.

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.

[Maidak]

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.

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.

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.

[crunck]

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.

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.

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.

[Iranus]

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.

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.

[harapan]

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.

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.

[Obari]

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.

[Leviathan.007]

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.

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.

[uneng]

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.

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.

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 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.

[Quidat]

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.

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.

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 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.

[Ale88]

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.

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.

[laurenB7742]

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.

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.

[kotajikikox]

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.

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 .