CZ Recommends Crypto Custody Based on Holdings and Technical Skills

Binance founder CZ has outlined a crypto-custody guide that urges users to match their security practices to their holdings, technical ability and how they use their funds.

The guidance focuses on preventing theft, avoiding accidental loss and planning how assets could be recovered or transferred after the owner’s death.

For self-custody, CZ recommends keeping private keys on offline devices, using reliable hardware wallets and checking transaction addresses before approving transfers. Users should also maintain multiple backups in separate locations.

The guide warns against storing private keys in photos or screenshots because those files may sync to cloud services. It also recommends preparing a secure inheritance and recovery plan rather than sharing private keys directly or keeping recovery information in unencrypted form.

For centralized exchange accounts, CZ recommends evaluating a platform’s reputation, security capabilities and business model. Suggested safeguards include using a separate email address, a strong password, two-factor authentication, a hardware security key and withdrawal address allowlists.

Users should also remain alert to phishing attempts and exposed API credentials, which can compromise access to exchange accounts.

CZ recommends distributing assets between centralized platforms and personal wallets according to a user’s technical ability, security-management level and funds-use needs. Self-custody leaves users responsible for protecting private keys and recovering assets, while exchange custody brings platform-credit and counterparty risks.

Maintaining an independent wallet can preserve access to assets during platform maintenance or service interruptions. The approach reflects the different responsibilities involved in self-custody and exchange-based storage.