Binance founder Changpeng Zhao and crypto analyst Willy Woo have sparked discussion across the crypto community after suggesting that keeping digital assets on centralized exchanges may statistically be safer than self custody.
The debate comes as the Coldcard security incident continues to unfold, with the estimated value of the stolen Bitcoin rising.
Woo referenced data showing that investors have lost approximately 1.57 million BTC through self custody, compared with around 1.51 million BTC lost on centralized exchanges. However, the figures are based on a report published in December 2025 and do not include more recent security breaches, including the ongoing Coldcard incident.
CZ argued that exchange related losses are easier to track because major hacks typically become public knowledge. By comparison, losses involving self custody are often underreported, as stolen or permanently lost coins may never be disclosed.
He also pointed out that historical exchange failures contribute significantly to the exchange loss figures, adding that Binance and several other major platforms have consistently compensated users for losses resulting from exchange side security breaches.
While acknowledging the strengths and weaknesses of both approaches, CZ concluded that the most practical strategy is diversification, suggesting investors spread their holdings across multiple custodians instead of relying entirely on either self custody or centralized exchanges.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
