There are many cases where digital assets are lost because the owners misplace their private keys. There are also cases where these assets are lost because centralized cryptocurrency exchanges are breached by hackers. However, according to CEO of Binance crypto exchange Changpeng Zhao, the latter just might be the safer option.
In a recent tweet, Zhao responded to popular gold bug and Bitcoin critic, Peter Schiff. Schiff complained about losing access to all the Bitcoin he has ever owned, adding that “owning Bitcoin was a bad idea.” In his response, Zhao says that it is better to use an exchange than to keep private keys.
“Many hardcore crypto [organizations] advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is #SAFUer for most people. The numbers speak for themselves. Need to work on wallets.”
Even though Zhao believes that using a centralized exchange – like Binance – is better, Binance itself suffered a hack last year. Calling it a “large scale security breach”. Binance reportedly lost more than 7,000 Bitcoin to hackers who were able to access the exchange’s information including two-factor authentication codes, as well as other information.
The incident cost Binance about $41 million.
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