CZ: The security of cryptocurrency assets should match the value of holdings and technical capabilities
Binance founder Zhao Changpeng posted on X, stating that the original length of his Binance blog was too long, so he released a condensed version. He mentioned that security measures should match the value of holdings and one's technical capabilities, while addressing three priorities: preventing theft, preventing accidental loss, and arranging inheritance. He also pointed out that self-custody private keys can authorize fund access, and mnemonic phrases are used to generate these keys, with obtaining any one of them allowing control over the related assets.
Regarding preventing key theft, Zhao Changpeng suggested using a dedicated offline computer or a reset dedicated phone, installing software only from official sources, ensuring encryption and physical protection, and choosing mature hardware wallets to verify the target address on the wallet before approving transfers. To prevent key loss, he recommended keeping multiple protected backups in different locations, which can be in paper, metal, or encrypted USB drives, avoiding taking photos or screenshots of keys to prevent syncing to cloud accounts, while also researching backup and encryption tools and testing the recovery process for usability.
On the topic of inheritance arrangements, Zhao Changpeng stated that directly sharing keys would immediately grant the recipient spending permissions, and it is not advisable to place unencrypted keys or backup passwords in timed messages. He mentioned that one could research and test a mechanism that releases instructions after a long period of inactivity, and encrypt the recovery instructions for designated recipients. For centralized exchanges, he suggested using a separate email, a unique password, a hardware security key, and limiting withdrawals to approved addresses, while also avoiding SMS verification and phishing links, and then allocating custody methods based on technical capabilities, security practices, and access needs.