Binance (CRYPTO: BNB) founder Changpeng “CZ” Zhao shared a cryptocurrency security guide on Sunday amid rising cases of hacks and unauthorized access.
Recommendation for Self-Custody Users
In an X article, CZ urged users to match their security measures with both their cryptocurrency holdings and technical abilities.
For self-custody users, he recommended “dedicated” offline devices, buying hardware wallets from “established” names, “strong” passcodes and verified transaction addresses.
The recommendations also addressed malware, tampering and physical theft. CZ advised keeping “multiple protected backups” in separate locations, while reminding that paper, metal and encrypted USB storage each involve different risks.
CZ also flagged Inheritance planning as a major challenge.
“Provide a recovery process without unnecessarily exposing funds during your lifetime,” he added. “A dead man’s switch can release instructions after prolonged inactivity. Research and test the service before relying on it.”
Recommendation for Centralized Exchange Users
Users holding assets on centralized exchanges were advised to evaluate each platform’s reputation, security resources, testing practices and business sustainability. The guidance warned that exchange custody carries “counterparty risk.”
CZ recommended dedicated computers, updated software, separate email addresses, unique passwords and hardware-based two-factor authentication.
He warned users to be wary of unsolicited email, text or social-media links and “unexpected contact” from someone claiming to be an exchange staff.
Hardware Wallets Under Attack
The instructions followed the Ledger hardware wallet hack that reportedly drained more than $86 million in cryptocurrencies, including Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).
In August, hackers drained at least 1,700 BTC, worth $141.82 million at current prices, from addresses generated by vulnerable Coldcard hardware wallets, according to Galaxy Research.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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