CZ Outlined the Key Rules for Safely Storing Cryptocurrencies

Published: October 12, 2026 – 07:25 UTC

Former Binance CEO Changpeng Zhao advises aligning cryptoasset protection with their value and your own level of technical expertise.
For self-custody, he recommends securing private keys, creating backups in different locations, and planning access recovery in advance.
For exchange accounts, CZ advises using unique passwords, hardware security keys, two-factor authentication, and withdrawal address whitelists.

Former Binance crypto exchange CEO Changpeng Zhao (CZ) outlined the core principles of secure cryptocurrency storage. He highlighted three priorities: preventing asset theft, protecting against accidental loss of access, and planning for inheritance transfers.

According to him, security measures should be chosen based on the value of the assets and the owner’s level of technical expertise. He also emphasized that self-custody of cryptocurrencies requires protecting private keys, maintaining reliable backups, and having a tested recovery plan.

Personal Wallets

CZ recommends storing keys and signing transactions on a separate computer that is not connected to the internet. Software should be installed only from official sources, checked for malicious code, and the device itself should be protected with encryption and physical access controls.

For mobile wallets, he advises using a dedicated phone with factory settings, installing only the necessary apps, and not gaining root access or performing an iOS jailbreak. The device should be kept offline except when a connection is needed for transfers or updates.

For hardware wallet owners, CZ advises choosing devices from reputable manufacturers, protecting them from theft and tampering, and verifying the recipient address directly on the wallet’s screen before sending. At the same time, such devices do not eliminate all risks: software issues, physical attacks, and insecure backup storage can lead to a loss of funds.

Backups and Inheriting Cryptocurrencies

To protect against losing keys, CZ recommends creating multiple backups and storing them in different locations. As options, he mentioned paper, metal backups, and encrypted USB drives.

Each of these methods has limitations: paper can be damaged, a metal backup can be lost, and digital copies require strong encryption. CZ also warned against photographing keys and taking screenshots, as they may automatically sync to cloud services. Backups and the recovery procedure should be tested in advance.

A separate set of recommendations concerns inheritance. Handing private keys to another person gives them immediate access to funds and creates additional risks. An alternative could be a Dead Man’s Switch mechanism that sends instructions after a long period of inactivity. However, before using such a service, CZ advises testing how it works.

He also recommends not storing unencrypted keys or recovery passwords in scheduled messages. Instead, the instructions can be encrypted for a specific recipient, for example using their PGP public key.

How to Secure Accounts on Crypto Exchanges?

On centralized exchanges, the provider manages assets and the storage infrastructure, but account security remains the user’s responsibility. CZ advises assessing the exchange’s reputation, its security resources, testing practices, and the resilience of its business model, as well as factoring in counterparty risk.

To protect accounts, he recommends:

use unique, strong passwords and store them in a password manager
enable two-factor authentication (2FA), preferring hardware security keys or authenticator apps over SMS
use a separate email address for each exchange and secure your email accounts
enable withdrawal address whitelists to restrict transfers to pre-approved addresses
protect API keys from unauthorized access and securely store private keys if asymmetric authentication is used
access exchange websites via verified bookmarks or by typing the address manually, avoiding suspicious links from emails, SMS, and social media

CZ separately warned about the risk of SIM-swap attacks, in which attackers can take control of a phone number and intercept SMS codes. Hardware security keys, if supported by the service, provide a more phishing-resistant authentication method.

Conclusion

CZ recommends diversifying crypto assets between exchanges and personal wallets, taking into account technical skills, the need for access to funds, and the ability to ensure security.

Self-custody gives you control over your private keys, but it requires responsible backup and recovery. Keeping funds on an exchange depends on the provider’s reliability and account security. At the same time, a separate wallet can provide access to part of your funds if the exchange is temporarily unavailable due to maintenance, Zhao concluded.

As a reminder, earlier the U.S. Securities and Exchange Commission proposed new crypto asset custody rules for investment advisers and funds.

Сообщение CZ Outlined the Key Rules for Safely Storing Cryptocurrencies появились сначала на INCRYPTED.

Source: Incrypted