Binance's CZ Weighs in on Cryptocurrency Storage: Centralized Exchanges May Be Safer

The recent surge in hacking attacks has reignited the debate surrounding the safe storage of cryptocurrencies like Bitcoin.

Binance founder Changpeng Zhao (CZ) weighed in on the issue, stating that holding cryptocurrencies on centralized exchanges may be statistically safer than storing them in individual wallets (self-custody).

CZ noted that exchange-based attacks are often publicized and therefore easily traceable, while losses in BTC held in cold wallets often go unreported.

He also emphasized that security breaches experienced by exchanges that ceased operations in the past negatively impacted statistics for centralized exchanges, but that some large exchanges, including Binance, fully compensated users for losses incurred during such security incidents.