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The CEOs of Binance and Kraken have evaluated the best practices in the sector for the storage of cryptocurrency in the wake of Cryptopia encryption. The problem remains, which storage medium has the lowest risk exposure?
CZ sees three
For the CEO of Binance, Changpeng & # 39; CZ & # 39; Zhao, users have three options; automatic storage, exchange or use of decentralized switchboards (DEX). Yesterday, CZ commented on the security of the coins in response to a hack from Cryptopia, weighing the pros and cons of the three options.
Store coins yourself. Fight yourself with hackers and be careful not to lose your wallet. Computer breaks, USB is lost.
Store in an exchange. Use only the most reliable and proven exchanges.
Or go to DEX, disturb us. https://t.co/Ci4ux9I3VD
– CZ Binance (@cz_binance) January 15, 2019
The CEO of Binance has advised those who try to store in centralized plants to use only the most reliable ones. However, Mt. Gox was the most respectable exchange in 2014, but then it was breached for over half a billion dollars.
Although he later clarified, the CZ tweet seems to have been pushed to encourage the use of third-party services, particularly DEX platforms. He later also admitted that the declaration should be considered as a promotion of the company's DEX platform. However, hackers managed to steal $ 12 million from Bancor, a supposedly "decentralized" platform in 2018.
Do not use exchanges to store cryptocurrency
For Kraken CEO Jesse Powell, users should not use more cryptos than they should actively negotiate. Instead, cryptocurrency owners should use hardware portfolios (certainly, even reliable ones) such as Ledger and Trezor.
Jesse Powell
Powell countered CZ's claims that decentralized exchanges are safer, saying:
DEX is not a panacea – look at the DAO. Open source only means that exploits will be discovered first (probably not good guys).
PLEASE do not store more coins in a bag (included @krakenfx) of what is necessary to operate actively. Use @LedgerHQ or @Trezor. DEX is not a panacea – look at the DAO. Open source only means that exploits will be discovered first (probably not good guys). 🙏 https://t.co/LmzhtCjpM0
– Jesse Powell (@jespow) January 16, 2019
Pierre Rochard of Bitcoin Advisory also challenged Zhao's comments by noting that exchange portfolios were at much greater risk than personal portfolios.
In October 2018, Bitcoinist reported that hackers have stolen nearly $ 900 million from trading platforms in the last two years.
Since the Mount. The Gox robbery of 2014, many other platforms have fallen victim to cybercriminals, and perhaps even within the workplace, although this is hard to prove.
So while Zhao talks about reliable and reliable platforms, it seems that centralized exchanges are playing "cryptocurrency musical chairs".
"Fight yourself with hackers and be careful not to lose [password] yourself. Computer breaks, [2fa] gets lost ".
Multiple individual exchange accounts have been breached compared to individual portfolios.
Disappointing, but not surprising, see the "industry leaders" spread bad information. https://t.co/xX4MJJhBUJ
– Pierre Rochard [⚡️] (@Pierre_rochard) January 15, 2019
Meanwhile, former Trezor CEO Alena Vranova echoed Powell, advising crypto owners to limit risk exposure by checking their private keys. Instead of using third-party services like online exchange portfolios, Vranova He says Hardware wallets with multisig function offer much greater security.
No archiving options, however, can be considered 100% secure. However, as industry veterans like Vranova and Powell recommend, cryptocurrency users should always try to minimize risk and never hold more funds than those required on the bags.
Which cryptocurrency storage option you think has the most positive upside compromise? Let us know your thoughts in the comments below.
Image courtesy of Twitter (@cz_binance, @ jespow, @pierre_rochard and AlenaSatoshi), Shutterstock
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