Topic: 99% of People Will Lose Crypto in Self Custody - page 5. (Read 944 times)

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.

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.

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 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.

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.

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%.

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

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.

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.

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!

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

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.

   - 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.

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).

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.

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.

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.

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.

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?

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.