Topic: 99% of People Will Lose Crypto in Self Custody (Read 1047 times)
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.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
The worst thing is probably using software wallets on desktop and mobile that are permanently online and used for just about anything you can think of. School, work, finance, leisure, games, porn, torrents, social media, etc. Unless you build your own system and use different devices for different activities, your chances of screwing up are much higher. At least use a separate computer just for your precious crypto and finances.
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.
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.
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.
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.
The worst thing is probably using software wallets on desktop and mobile that are permanently online and used for just about anything you can think of. School, work, finance, leisure, games, porn, torrents, social media, etc. Unless you build your own system and use different devices for different activities, your chances of screwing up are much higher. At least use a separate computer just for your precious crypto and finances.
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. 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.
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.
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.
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. Storing your assets in a personal wallet is one part of the risk, other like hack and loss of keys are also major concerns.
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. 
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.
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. 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.
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.
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 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. Storing your assets in a personal wallet is one part of the risk, other like hack and loss of keys are also major concerns.
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.
Storing your assets in a personal wallet is one part of the risk, other like hack and loss of keys are also major concerns.
~snip~
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.
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.‘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.
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.
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.
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.
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.
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.
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.
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.
Jump to: