Binance Founder CZ Releases Concise Crypto Asset Custody Guide

Binance founder CZ has released a concise version of "Keep Your Crypto #SAFU in 2026," advising users to match security measures with their holdings and technical capabilities, focusing on preventing theft, avoiding accidental loss, and planning for inheritance.

For self-custody, CZ recommends using dedicated offline devices to store private keys and sign transactions, choosing reliable hardware wallets, verifying target addresses on the device, and setting up multiple off-site backups. He explicitly warns against saving seed phrases through photos or screenshots to avoid cloud exposure.

Backup methods include paper, metal plates, and encrypted USB drives, which must be protected against damage, loss, and unauthorized access. Inheritance plans should avoid directly sharing private keys or storing recovery information in plaintext, considering tested "dead man's switch" mechanisms and using recipient public key encryption for instructions.

For centralized exchanges, CZ suggests evaluating the platform's reputation, security resources, testing practices, and business model sustainability, enhancing account protection through independent emails, strong passwords, two-factor authentication, hardware security keys, and withdrawal address whitelists, while remaining vigilant against phishing attacks and API credential leaks.

CZ further points out that assets should be reasonably allocated between centralized platforms and personal wallets based on technical capabilities, security management levels, and funding needs. Self-custody requires users to independently manage private key protection and recovery responsibilities, while platform custody involves credit and counterparty risks. Retaining an independent wallet allows access during platform maintenance or interruptions.

The guide links security measures directly to holding value, emphasizing that once private keys and seed phrases are leaked, funds can be controlled. Driven by events, hardware wallet manufacturers, security audits, and backup tool providers are experiencing increased demand, while retail investors lacking operational capabilities face higher loss risks, and exchanges must continuously invest in account security to maintain custody funds.

The guide also notes that different custody methods present varying risk profiles, and balanced allocation is generally preferable to a single choice. Users need to research and test recovery processes to ensure they are executable.

Source: Public Information