CZ proposed this I think two weeks ago, but my advise to people is that they should not hold any coins on an exchange except the money they are actively using to trade.

The best place to hold your coins are on cold noncustodial wallet that are open source.

People should learn about multisig, timelock and other inheritance means.

These are scary things in my opinion. In general, I would use a CEX, but only to buy and immediately withdraw coins. I would never keep coins in there. As such, I would never trust a CEX to have any legal right to pass my inheritance to my descendants. Like Charles-Tim said, there are safer solutions. Perhaps not easier or more convenient, but definitely safer.

If I am keeping cryptocurrency as an inheritance for my dependents, it would be Bitcoin only. I don't have confidence in any altcions.


This option might be favored by many since some people don't make plans about their future. Since crypto owners are within their youthful age they might think it is needless to make plans for death. This has led to a high amount of unclaimed assets or funds due to untimely death.

I wouldn't keep my assets in a centralized platform because it's unsafe. My dependents already know what to do if I am no longer alive because I have exposed them to Bitcoin.

Bitcoin has nlock function that can be used for inheritance. There is another way that is easily for inheritance, create a non custodial wallet and pass its backup information to your lovers. It is safer than storing your bitcoin on Binance and hope that Binance exchange will not die and your loved ones will be able to claim your bitcoin after your death.

Binance exchange can die even before your death.
Reminder: Do not keep your money in online accounts.
https://www.cryptowisser.com/exchange-graveyard/

CZ is a very smart guy and always comes up with features that ensures longevity and dominance of Binance in this crypto space. This feature would convince a lot of ignorant masses that Binance is safe for a long-term and increase their trust for the CEX, while in reality, they are placing their funds at greater risk by leaving it there.

Personally, anything that keeps my funds in the hand of a third party for long is a big NO for me. It is always non-custodial for long-term storage or nothing.

What do you expect from someone who own a centralized exchange, to scare people out from keeping funds in their exchange, I don't think so. This is another way to decieve the public that Binance is safe whereas we know that it has all the flaws as a centralized exchange.

Bitcoin should be kept in a noncustodial wallet till whenever you want it and not in CEX. Only dumb people will fall for this because there are good and safe way to pass on your bitcoin to your heir and not this. Who knows if Binance will be hacked in future.

CZ is smart with his idea, now how can people avoid Binance?

Binance got hacked, they have SAFU.
Someone have no access to their account and then after they die, the heirs will receive the coins.
Someone die due to accident, the heirs will receive the coins.
Another plus benefit, holding coins in Binance will earn interest.

But, but, this kind of idea is similar like product by insurance company, they will try to do any way to make you not able to claim the coins.

I smell Bull crap. This is an opportunity to convince uninformed to use binance as a holding wallet.
A dead man can't defend himself
There are many ways they can deny your next of kin of your funds.
Best still remains self custody and implementing strategies towards acquisition by the next of kin.

Why not hold all the coins to hardware wallet and passed it to your beneficiary through a lawyer or safe. This way you will not rely on decentralized exchange feature just to transfer your holdings when you are gone.

Using this feature means you are storing your coins on exchange for a long time which is not advisable due to safety concern.

Not your keys not your coins. Hardware wallet is the best option to physically transfer ownership of your coins.

CZ is the founder of a centralised exchange called Binance. So his thinking will be centralised as well. I am not surprised about his suggestion. It's something like a banking system where nominees are mandatory; in case of passing away, funds will be handed over to the nominees. He suggests from his perspective that since a lot of people are using Binance, he will never suggest not storing funds in Binance. Because this is his business, he will do everything for his business. I won't mind about his suggestion.

But, for our safety, we have to think for ourselves, not from a CZ perspective. I never feel comfortable with centralised exchanges, and I never trust them. Even with Binance, I have a bad experience regarding seized funds. So no question to store funds in a centralised exchange, especially if the amount is big. We must maintain a hardware wallet to secure our funds. We need to maintain a real-life notebook to write down everything, from where our next generation could get access to all my funds.