Recently, former Binance CEO Changpeng Zhao (CZ) shared profound advice for the cryptocurrency community, highlighting a security risk that many often overlook.
CZ warns against receiving cryptocurrency through directly inheriting hardware wallets or private keys from others. This is an unsafe action because the original owner can still access the assets if they still hold the hardware wallet or private key.
The fact that both parties share a private key creates a serious security vulnerability, even if the provider of that key is a trusted person. When cryptocurrency is moved or lost, it will be very difficult to determine exactly who is responsible, whether it's a hacker or the original owner.
CZ recommends that cryptocurrency be immediately transferred to an address over which the user has complete control. To ensure maximum safety, ask the sender to transfer cryptocurrency directly into your wallet.
By taking this simple step, users not only ensure absolute control over their assets but also eliminate unnecessary potential risks.
One of the core principles of cryptocurrency security emphasized by CZ in this advice is controlling your own private key.
The saying 'Not your key, not your coins' has become a popular mantra in the cryptocurrency industry, and this is completely justified.
Access to assets on the blockchain is protected through ownership of the private key. Therefore, security will be threatened if users share that key or allow others to hold it.
CZ's warning serves as an important reminder for both newcomers and those experienced in the cryptocurrency field. Ensuring safety in transactions is extremely important as the industry grows and more people participate.
Whether managing assets, receiving gifts, or making transfers, maintaining exclusive control over the private key is the best way to protect users' assets.
The main message in the advice from the former CEO of Binance is very clear and effective: Take responsibility for your own cryptocurrency security.
In the decentralized world of cryptocurrency, this helps minimize the risk of disputes, cyberattacks, and financial harm while protecting users' financial independence.