Exchanges May Be Safer for Crypto Assets Than Private Wallets

Binance CEO Changpeng Zhao made a surprising claim that crypto assets may be statistically safer on exchanges than in private wallets. He pointed out that exchange hacks are usually reported as major news events, making losses easier to quantify.

Zhao noted that some defunct exchanges have contributed to the skewing of industry-wide exchange statistics. However, he also mentioned that some exchanges, including Binance, have compensated users when hacks occurred.

Zhao emphasized that each custody method carries different risks and product structures, meaning the best choice can vary by user. He advocated for a diversified storage approach using both exchanges and private wallets.