@cz_binance: It is statistically safer to store coins on exchanges than to self custody. A few thoughts: Assuming the data is correc…

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Summary

CZ argues that storing coins on exchanges is statistically safer than self-custody, citing data discrepancies and exchange coverage, while acknowledging trade-offs and different risk profiles.

It is statistically safer to store coins on exchanges than to self custody. A few thoughts: Assuming the data is correct, my impression is Willy has always been a strong supporter for self custody. Hack data is easier to collect on the CEX side, usually major news. It is harder on the self-custody side, where hacks, lost coins, etc are often not reported. On the exchange side, some deceased exchanges drag down the data. Binance (and a few other exchanges) have always covered users for any CEX side hacks. Not saying one is better than another. Different approaches have different risk profiles (and product offerings), and may be better suited for different people. A balanced approach is probably best.
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Cached at: 08/05/26, 08:25 AM

It is statistically safer to store coins on exchanges than to self custody.

A few thoughts:

Assuming the data is correct, my impression is Willy has always been a strong supporter for self custody.

Hack data is easier to collect on the CEX side, usually major news. It is harder on the self-custody side, where hacks, lost coins, etc are often not reported.

On the exchange side, some deceased exchanges drag down the data. Binance (and a few other exchanges) have always covered users for any CEX side hacks.

Not saying one is better than another. Different approaches have different risk profiles (and product offerings), and may be better suited for different people. A balanced approach is probably best.

Willy Woo (@willywoo): Sobering numbers

1.57M BTC lost via self custody 1.51M BTC lost on exchanges

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