Binance is the largest crypto exchange in the world. However, is Binance safe to use? In this article, we’ll explore Binance’s security, and consider whether Binance is a safe and secured crypto exchange. We’ll provide methods to help protect your crypto while using Binance.

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Binance Exchange Introduction

Binance crypto exchange is stablished in 2017, which has rapidly grown into the world’s largest virtual currency exchange in just five years.

Binance boasts a global registered user base of up to 170 million, with users spanning multiple countries and regions.


Is Binance Safe?

Binance is a fairly safe crypto exchange with advanced security practices.

Binance’s security can be categorized into four aspects: Licenses and Registrations, Fund Security, User Data Security, and Online Reputation. See details below.


Licenses and Registrations of Binance

Binance is committed to working closely and collaboratively with regulators from around the world. Binance currently holds the following regulatory licenses, registrations, authorisations and approvals.

As of 2024, Binance has obtained operational licenses in several countries, including France, Italy, Dubai, Japan, Thailand, among others.

These licenses establish Binance as a legitimate cryptocurrency service provider or grant relevant operational permissions.

Click for details of Licenses and Registrations


Fund Security of Binance

One of the main concerns when using a cryptocurrency exchange is the security of funds, such as the risk of hackers stealing funds.

Binance states that the “vast majority” of its crypto is stored in cold wallets that are not connected to the internet, outside of the grasp of cyberattackers.

Secure Asset Fund for Users (SAFU)

Also, Binance has established the Secure Asset Fund for Users (SAFU) for all its users.

In the event of a hacker attack, this reserve fund is utilized to compensate each affected user.

    The SAFU fund is financed by 10% of all trading fees collected by Binance. With millions of users worldwide and a daily trading volume of up to $72 billion, Binance generates substantial trading fees, ensuring that the reserve fund has ample resources to safeguard user funds.

    For example, in 2019, Binance experienced a hack resulting in the theft of 7,000 bitcoins worth over $40 million. The SAFU fund was immediately activated, ensuring that Binance users did not suffer any losses.


    User Data Security of Binance

    Binance employs personalized access controls that allow users to limit access to their accounts based on specific devices and addresses. Additionally, personal data on Binance is subjected to advanced encryption, and user transaction information is protected through end-to-end encryption, ensuring that only authorized individuals can access their personal information.

    Social Security numbers, addresses, and other personal data is stored in encrypted form, making it very difficult for a hacker to get this information.


    Online Reputation of Binance

    There have been negative reviews online related to “Binance scams”.

    For instance, in late 2019, Binance was involved in a controversy where changes made to the Bitcoin contract caused a sharp price drop, resulting in losses for some users. Binance acknowledged the mistake and committed to compensating affected customers for their losses.

    This incident demonstrates that Binance has managed its crisis communications effectively, addressing issues such as fraud and negative online reviews.

    If Binance’s system detects suspicious activity on your account, it immediately notifies you through email.


    Secure Your Binance Account in 5 Simple Steps

    To strengthen the security of your Binance account, you are advised to do the following five steps.

    1. Use a strong password and change it regularly

    Ideally, your password should be more than eight characters long, containing both uppercase and lowercase letters, numbers, and special characters.

    2. Enable Two-Factor Authentication (2FA)

    Binance supports multiple types of 2FA, including SMS authentication and Google Authenticator. If you turn this feature on, you’ll be required to enter a code from your phone every time you log in or make a withdrawal.

    Binance also allows you to use a hardware device such as Yubikey to receive the code, which is an even stronger method than using a mobile app.

    3. Check the list of devices authorized to access your account

    When using the Binance app, you can find this tab under the “Account” tab. If you see any devices you don’t recognize or don’t use anymore, remove them.

    4. Manage your withdrawal addresses

    Binance Address Management allows you to limit the wallet addresses that you can withdraw funds to. If you turn this on, each newly added address will require an email confirmation to be added to the whitelist.

    5. Learn about phishing

    Phishing is a type of attack where a malicious actor tries to pose as someone else (for example, a business) to obtain your personal information. The Anti-Phishing Code feature allows you to set a unique code to be included in all your Binance notification emails. You’ll be able to tell if the notification emails you’re receiving from Binance are genuine.


    Five risk management strategies

    Here are five basic risk management strategies for investing in cryptocurrencies, especially for novice investors:

    1. Build an emergency fund: Before investing, ensure you have sufficient emergency savings to cover at least six months’ worth of expenses. For example, if your monthly expenses amount to $3,000, you should have a minimum of $18,000 in cash reserves that are not earmarked for any investments.
    2. Use disposable income: Avoid borrowing money to invest and refrain from using your emergency funds for investment purposes. Only invest funds that you can afford to lose without compromising your financial stability.
    3. Conduct personal analysis: Take the time to gather and analyze relevant information before making investment decisions. Rely on your own research and understanding to make informed choices that align with your investment goals.
    4. Avoid FOMO (Fear of Missing Out): Do not make impulsive buying decisions based on the fear of missing out on quick price gains. Such actions can lead to losses when the market corrects or experiences a downturn. Maintain a disciplined approach and invest based on careful analysis rather than emotional impulses.
    5. Be mindful of platform risks: Diversify your investments across multiple platforms to mitigate the risk associated with any single exchange. Consider opening accounts on reputable platforms such as Binance, Bybit, and others to spread your investments and minimize potential disruptions caused by platform-specific issues.

    Conclusion on Binance Safety

    Binance is a fairly safe crypto exchange with advanced security practices.

    When you use Binance, make sure you know the ways that help protect your crypto in Binance as mentioned above.


    Binance Safety FAQs

    Is Binance safe?

    Binance is one of the safer exchanges compared to others.

    Does Binance have security practices?

    Yes. Binance’s security can be categorized into four aspects: Licenses and Registrations, Fund Security, User Data Security, and Online Reputation. See details above.

    How to Secure Your Binance Account?

    To strengthen the security of your Binance account, you are advised to do the following five steps.
    1. Use a strong password and change it regularly
    2. Enable Two-Factor Authentication (2FA)
    3. Check the list of devices authorized to access your account
    4. Manage your withdrawal addresses
    5. Learn about phishing