Binance CEO Changpeng Zhao warns the crypto community against using proprietary crypto wallets. According to Zhao, 99 percent of people who start doing this eventually lose their crypto. By the way, CZ is a supporter of its own crypto wallets and even called it a fundamental human right in the past.
Fundamental human right
Changpeng Zhao may call it a fundamental human right, but he still thinks it’s not a good idea for most people. In February 2020, he even published “CZ’s Tips” to help people with this. We generally agree with Binance’s CEO. Ultimately, everyone should keep their crypto assets in their own wallets, but for most people it is still too early for that.
If you choose that, you really have to be sure that everything is well organized. If that is not the case, there is a chance that you will ever lose your crypto. This means that you should not only make backups, but also test them. Check if everything works as it should. That’s the only way to check if your setup is all right.
Empty at Binance
“Most people can’t manage to back up their private keys; they will lose their device […] They won’t use proper encryption for their backup; write it down on a piece of paper, someone else will see it and steal the funds,” said Changpeng Zhao. It is striking that Zhao makes these statements when people are removing large amounts of crypto from his exchange platform.