Binance, one of the world’s largest cryptocurrency exchanges, is not a custodian. This means that when you use Binance to buy, sell, or trade cryptocurrencies, you are responsible for your own security.
This article will explain what this means and why it’s important.
What is a custodian?
A custodian is a financial institution that holds and protects your assets. For example, when you put money in a bank account, the bank becomes your custodian.
They are responsible for keeping your money safe and ensuring that you can access it when you need to.
Cryptocurrency exchanges like Binance are not custodians. This means that when you use Binance, you are responsible for your own security.
NOTE: WARNING: Binance is NOT a custodian. It is a cryptocurrency exchange platform that allows users to buy, sell and trade cryptocurrencies. Binance does not provide custody services for customer funds and does not maintain customer funds in segregated accounts. As a result, customers must always exercise extreme caution when using Binance to store or trade their digital assets, as the platform does not guarantee the safety of those assets.
This includes keeping your own private keys safe and backing up your wallet.
Why is this important?
There are a few reasons why it’s important to know that Binance is not a custodian. First, it’s important to understand that when you use Binance, you are responsible for your own security. This means that if you lose your private keys or forget your password, there is no one that Binance can help you recover them. Second, if there is ever a hack or security breach on Binance, your funds are not protected.
This is because Binance does not hold your funds in custody, so they would not be able to reimburse you if there was a loss. Finally, if Binance ever goes out of business, your funds would not be protected either. This is because there is no central authority that holds and protects your assets when you use Binance.
So, is Binance safe?
Yes and no. Binance is a safe and secure platform to use for buying, selling, and trading cryptocurrencies.
However, because Binance is not a custodian, you are responsible for your own security. This includes keeping your own private keys safe and backing up your wallet.
4 Related Question Answers Found
Binance is one of the most popular cryptocurrency exchanges in the world. Founded in 2017, Binance has quickly become a leading name in the crypto space. But is Binance legit?
Binance is one of the most popular cryptocurrency exchanges in the world. It has a great reputation in the industry and is known for its low fees, fast transactions, and easy-to-use platform. However, like all exchanges, Binance has had its share of problems.
Binance is one of the most popular cryptocurrency exchanges in the world. It is also one of the most reliable exchanges in terms of security and customer support. Binance was founded in 2017 by Changpeng Zhao, a developer with a background in finance.
Binance is a cryptocurrency exchange with a focus on the Chinese market and other Chinese coins. Binance was founded in 2017 and quickly rose to become one of the largest exchanges in the world with over $1.
4 billion in trading volume per day. Binance is not an ICO.