CZ: Storing Cryptocurrency on an Exchange is Safer than Self-Custody

BlockBeats News, August 4th, Binance founder CZ stated that from a statistical perspective, storing cryptocurrency on an exchange is safer than self-custody. Several points to consider:

Assuming the data is correct, my impression is that Willy has always been a strong advocate of self-custody. Regarding centralized exchanges, data on hacks is more easily accessible and usually involves major news. On the other hand, in the self-custody realm, events such as hacks or cryptocurrency loss often go unreported, making it more challenging to collect such data. In the case of exchanges, the data quality can be compromised by some collapsed platforms. Binance (and some other exchanges) has always provided users with protection against hacking.

I am not saying that one method is better than the other. Different approaches come with different risk profiles (and product services) and may be more suitable for different people. A balanced approach may be the best choice.

CZ referenced crypto analyst Willy Woo's tweet, which showed that 1.57 million BTC is lost through self-custody, while 1.51 million BTC is lost on exchanges.