Experts opinion about cryptocurrency in keys vs cryptocurrency in exchange

Posted by BenMilo on January 27th, 2020

• Changpeng Zhao- Co-founder and CEO of Binance agrees that it is safer to keep and store cryptocurrencies in an exchange rather than on one’s own keys. 

• He also tweeted on the 19th of January this month and the tweet says,  “ Many hardcore crypto ogs 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.”

• In May 2019, there is a report of a theft that happened in binance facing a major security breach and is said to have lost 7,000 BTC which is almost equal to .7 million. 

• The co-founder of ethereum, Vitalik Buterin, says he doesn’t agree to people blaming the users about keeping their keys safe and to let the loss of funds because of mismanagement of keys. He states that it is a developer’s responsibility to work towards offering them a secure wallet to secure their cryptocurrencies. 

• His statement goes, “Disappointed at people replying to this with ‘crypto is what it is, it's your job to be super-careful and write down backup seeds in three places.’ We can and should create better wallet tech to make security easier.”

• He also says the concept of “social recovery” can be introduced which will enable multiple people to use the keys in combination, to recover funds. 

• However, it is also said that the social recovery method has many drawbacks, as there are multiple people involved and there is a possibility of easy hacks. The process consists of a lot of trust factors.