Binance, Exchanges

Are Binance Funds Insured?

It is understandable that many people are wondering if Binance is safe after the recent hack. And while it is impossible to guarantee that any exchange is 100% safe, there are a number of measures that Binance has put in place to try and mitigate the risks.

One of these is insurance.

Binance has insurance coverage for both hot and cold wallets. The hot wallets are where funds are kept that are needed for day-to-day operations.

These funds are kept in a multi-signature wallet with security measures in place such as 2FA and whitelisting. The cold wallets are where the majority of funds are kept offline in order to reduce the risk of them being hacked.

The insurance that Binance has in place covers both hot and cold wallets and protects against losses due to hacking, theft, and fraud. This means that if there was ever a successful hack of Binance, the insurance would cover any losses that were incurred.

This would reimburse users for any coins that were stolen from their accounts.

While no exchange can be 100% safe, Binance has taken a number of steps to try and make sure that user funds are as safe as possible. Insurance is one of these steps and it provides an extra layer of protection for users in the event of a hack.

Previous ArticleNext Article