99% of People Will Lose Crypto in Self Custody - page 6.

BitcoinPanther

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Quote from: Issa56 on December 15, 2022, 06:17:55 PM

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.

Quote from: Issa56 on December 15, 2022, 06:17:55 PM

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.

kamvreto

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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.

Issa56

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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.

rby

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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.

BitDane

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Quote from: sunsilk on December 15, 2022, 05:43:25 PM

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.

Quote from: sunsilk on December 15, 2022, 05:43:25 PM

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.

TimeTeller

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Quote from: jackg on December 15, 2022, 05:48:53 PM

Quote from: mk4 on December 15, 2022, 02:50:12 PM

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.

jackg

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Quote from: mk4 on December 15, 2022, 02:50:12 PM

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.

sunsilk

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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.

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.

Z-tight

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Quote from: Asiska02 on December 15, 2022, 03:44:10 PM

I won't say I disagree with his point because he makes an important point in this case. What is the point of storing your funds in a self-custody wallet when the coin is vulnerable to attack and lost by the owner?

Funds in centralized exchanges are also vulnerable to attacks, but not just that, they are vulnerable to hacks, misappropriation, confiscation, inside job, total loss due to govt clampdown on the exchange, etc; CZ knows funds in centralized exchanges aren't safe, but he has said this to convince the unknowledgeable to continue 'banking' with him and Binance.

Funds in self custody are safe so long as the owner is responsible enough to protect it, that is the only 'vulnerability' with self custody, you just need to learn how to store your money, no worries about confiscation, inside job, or other things that cause loss of funds in centralized exchanges, so between these two, it is obvious the choice people should go with.

serjent05

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CZ is promoting centralized exchange for his business benefits. I don't agree with the 99% statistics. This is just an exaggeration. I still think that the number of people who lost money in exchanges is far more than the number of people who lost funds in self-custody.

So my take on this is don't believe someone who has an ulterior motive when stating something. In this case, CZ wants people to believe what he stated just to have people who move out of his exchange to redeposit and trust their funds to exchanges. Just check how perfectly this statement timing is done to persuade or advise people to just let their funds sit in exchanges.

gantez

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If except it is send to a wrong wallet which also is a mistake that can meet anybody whether to send to decentralised, centralised and personal wallet, the mistake can happen. It is better to keep coins in your personal wallet if you have not expose wallet address in public, hackers is what I think can be challenge for personal wallet.

carlfebz2

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Quote from: noormcs5 on December 15, 2022, 02:37:58 PM

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.

Wont be surprised that CZ would really be having those words considering that he owns Binance which is a centralized platform which most people been using up and since recently there's a huge pull out of funds

out of these exchangers then it isnt really that surprising that words would be coming out from his mouth but it is really just to exaggerated.He shouldnt really make himself that too obvious
that he's bit disappointed on what currently users been doing.

Well, he couldnt blame it out considering on what recently happened on FTX which it is really just normal to have those doubts and lost of trust with these platforms
which it is really just normal that they would be freaking out and pulling their funds out of exchangers.

buwaytress

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Yeah, 99% is a bit self-serving, because there's going to be a lot of business in custodial services once they've milked institutional custody (and Quadriga tells us there are still plenty of businesses doing self custody as DooMAD says).

Definitely have said so myself that it's not for everyone -- in which case, it's independent money and not so much Bitcoin that's not for everyone. Nothing wrong with that, but people should be able to make that choice, and have the awareness necessary to make that choice.

Welsh

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Quote from: TechnoX_X on December 15, 2022, 04:48:48 PM

And only a fool could lose the private key in their wallet containing their own funds

I think that's a little unfair. Many people lose passwords, banking details. The only difference is there's a safety net with fiat. I imagine a lot of the Bitcoin that was in wallets in the early days has been lost due to mismanagement of their private key. Especially, before Bitcoin made it into the mainstream spotlight, and didn't balloon in price.

I'd like to think that most people now know the importance of safeguarding the private key, but the reality is a lot of people are likely very lapse about it. Just as they're with other things when it comes to the security of it.

TechnoX_X

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However I would only trust my personal non-custodial wallet rather than having to keep my funds in a centralized wallet. 99% Centralized wallets are more vulnerable to hacks

And only a fool could lose the private key in their wallet containing their own funds

Welsh

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Quote from: DooMAD on December 15, 2022, 04:46:03 PM

I guess he's including people who run exchanges in that figure. After all, they arguably have the largest quantity of bitcoins in "self-custody". If we think broadly about the term, that's exactly what exchanges do. All funds deposited belong to them (users are just unsecured creditors). They store the private keys for all those bitcoins. Exchanges are quite literally doing self-custody. And they don't have a very good track record. No wonder he doesn't think ordinary people can do it when all of his contemporaries are clearly so abysmal at it. Grin

Try convincing them to store their Bitcoin with another exchange; its not going to happen. Wallets on an exchange should be a thing of the past now. There's been multiple discussions over the years about it, and I'd agree. It just doesn't make sense. Exchanges should be designed in such a way that you can't store anything on their platform. It's very likely that people start moving onto peer to peer exchanges with the constant downfalls of these centralised exchanges.

DooMAD

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I guess he's including people who run exchanges in that figure. After all, they arguably have the largest quantity of bitcoins in "self-custody". If we think broadly about the term, that's exactly what exchanges do. All funds deposited belong to them (users are just unsecured creditors). They store the private keys for all those bitcoins. Exchanges are quite literally doing self-custody. And they don't have a very good track record. No wonder he doesn't think ordinary people can do it when all of his contemporaries are clearly so abysmal at it. Grin

Welsh

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Quote from: mk4 on December 15, 2022, 02:50:12 PM

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

99% is probably a sensationalist remark just to grab people's attention. In reality, that number would be much, much lower. Although, definitely a point to be made there.

Quote from: mk4 on December 15, 2022, 02:50:12 PM

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.

Honestly, using fiat with a bank is probably the best idea for these types of people. There's nothing wrong with that, I do think banks get criticized a lot around here, and while I would generally agree with that. Certain circumstances they might actually make sense, and I think the senior person who doesn't want to take responsibility for their own money, and have scam/fraud protection built in; makes a lot of sense.

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Quote from: noormcs5 on December 15, 2022, 02:37:58 PM

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.

What about you being the person in place of CZ, you would say more than this since that's the means to your survival and no one can seat down to be watching his business getting collapse right in his presence without finding a solution, the more reason why he made this statement, but we cannot runaway from central authorities and still falls in the hands of centralized exchanges, it makes no difference, not your keys not your coins period.

Quote from: noormcs5 on December 15, 2022, 02:37:58 PM

He may be right because most people do not understand the risk, if they are not careful they could lose all their crypto.

Thesame risk his own exchange has as well even more higher than having a non custodian wallet, since every individuals will be accountable to bear responsibility to his own wallet.

teosanru

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Quote from: noormcs5 on December 15, 2022, 02:37:58 PM

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 C'mon the last person I would like to hear the opinion of on this issue would be Binance CEO, Obviously he would want everyone to still keep money on centralized wallets, truth is that with right education there is just 1% chance you might lose it. And even without education there will still be like only 20-30% of people who would be this foolish to do such a mistake, Obviously the dex wallets should have proper warnings for people and proper instructions in layman languages, I am sure that not 99% of the people are idiot enough to lose their private key in this way.

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