CZ Shares Essential Crypto Security Tips: How to Keep Your Assets SAFU

Binance founder Changpeng Zhao (CZ) shared key insights on asset security in a recent post on Binance Square, addressing the ongoing debate between hardware wallets and centralized exchanges.Self-Custody vs. Centralized Exchanges – What's the Best Security Approach?Binance founder Changpeng "CZ" Zhao has issued a detailed guide on securing cryptocurrency, emphasizing that many users underestimate security risks. While some advocate for self-custody as the safest option, CZ warns that proper security measures are essential to avoid hacks, lost private keys, or inheritance issues.According to CZ, users must balance security and usability, as no system is 100 percent secure. He outlines practical methods to protect digital assets, whether storing crypto independently or on a centralized exchange (CEX) like Binance.Self-Custody: The Risks and Best PracticesWhy Holding Your Own Private Keys Can Be RiskyThe phrase "Your keys, your crypto" is widely accepted in the crypto community, but CZ challenges this notion by pointing out that storing private keys safely requires technical expertise.A Bitcoin private key is a long alphanumeric string that grants full access to the linked funds. If stolen or lost, there is no way to recover the assets.Key Security Risks of Self-Custody:Hacks & Malware Attacks: Hackers use viruses and phishing scams to steal private keys.Loss of Private Keys: If a user misplaces their backup, their crypto is gone forever.No Inheritance Plan: Without a clear strategy, assets may become inaccessible after an owner’s death.Best Practices for Secure Crypto StorageCZ recommends offline storage solutions for maximum security:Cold Wallets: Use a dedicated computer that never connects to the internet to store crypto. Install software via a clean USB stick, scan it for malware, and use open-source wallets for transparency.Hardware Wallets: Devices like Ledger and Trezor prevent private keys from being exposed, but users must be cautious of potential firmware vulnerabilities.Mobile Wallets: If using a mobile phone for storage, keep it in airplane mode except when making transactions and never connect it to public WiFi.Secure Backups: Store encrypted backups of private keys on shock-resistant USB drives in multiple locations. Avoid cloud storage or taking screenshots of private keys.Crypto Exchanges: Are They a Safer Alternative?Why Using a Reputable CEX Can Be Safer Than Self-CustodyFor many users, storing assets on a regulated, high-security exchange like Binance may be safer than managing private keys independently.Advantages of Using a CEX:Advanced Security Infrastructure: Large exchanges invest millions in security, risk monitoring, and fraud detection.Protection Against Theft: Binance uses AI and big data to prevent hacks and detect fraudulent activities.Easier Access to Funds: Users do not risk losing their assets due to misplaced private keys.However, not all exchanges are secure. CZ warns against using small, unregulated platforms, as some may lack proper security measures or engage in exit scams.How to Secure Your Funds on a Crypto ExchangeTop Security Measures for Binance and Other CEX UsersTo enhance security on an exchange, CZ recommends the following:Enable Two-Factor Authentication (2FA): Use Google Authenticator or Yubikey instead of SMS, as SIM swap attacks are common.Secure Your Email: Create a unique email for each exchange and enable end-to-end encryption with providers like ProtonMail.Use a Password Manager: Store complex passwords safely using 1Password or KeePass.Turn on Withdrawal Whitelisting: This feature blocks unauthorized transactions by limiting withdrawals to pre-approved addresses.Beware of Phishing Scams: Always access Binance and other exchanges by typing the URL directly, and avoid clicking links in emails or social media messages.Self-Custody or Exchange? The Best Strategy for Crypto SecurityFor tech-savvy users, combining cold wallets and a secure exchange may offer the best balance between security and convenience. For beginners, keeping funds on a trusted CEX like Binance with proper security measures enabled is often the safest approach.As crypto adoption grows, CZ emphasizes the importance of protecting digital assets proactively. Whether using self-custody or exchange storage, following best security practices ensures users keep their crypto SAFU.