Binance is the world’s largest cryptocurrency exchange by trading volume. It’s no surprise, then, that it’s also one of the most popular exchanges among cryptocurrency investors. But is Binance safe to use?
The short answer is yes, Binance is safe. The exchange has never been hacked and employs a number of security measures to keep user funds safe.
However, like any other online service, Binance is not immune to security threats. There have been a number of high-profile hacks and scams in the cryptocurrency space, and users should always take steps to protect their own funds.
Binance was founded in 2017 by Changpeng Zhao, a former developer at Blockchain.info.
The exchange quickly rose to prominence due to its low trading fees, wide range of supported cryptocurrencies, and innovative features. Today, Binance is the largest cryptocurrency exchange in the world with a daily trading volume of over $2 billion.
Binance is headquartered in Malta and has offices in Hong Kong, Japan, and South Korea. The exchange is available in over 180 countries and supports multiple languages.
One key reason why Binance is so popular is its strong focus on security. The exchange employs a number of industry-leading security measures, including two-factor authentication (2FA), cold storage for user funds, and advanced know-your-customer (KYC) checks.
In addition to these standard security measures, Binance also has its own risk management system that monitors user activity for suspicious behavior. If there are any unusual or suspicious trades, withdrawals, or deposits, the system will flag them for manual review by Binance staff.
Despite these strong security measures, Binance has not been immune to hacks and scams. In July 2018, hackers used phishing attacks to steal over $30 million worth of Ethereum from user accounts.
Binance quickly reimbursed all affected users from its own reserves and implemented additional security measures to prevent similar attacks in the future.
More recently, in May 2019, a fake version of the Binance website was used to trick users into sending their login credentials to hackers. Thankfully, no user funds were stolen in this attack thanks to Binance’s strict security measures.
However, it serves as a reminder that even the most well-protected exchanges are not immune to sophisticated attacks.
So how can you stay safe when using Binance? First and foremost, never click on links from unknown or untrustworthy sources. This includes links in emails, online ads, social media posts, etc.
If you’re ever unsure whether a link is safe or not, you can hover over it with your mouse to see where it’s really taking you before clicking on it.
Another important safety measure is to enable 2FA on your account. This adds an extra layer of protection by requiring you to enter a second code (usually generated by an app on your phone) whenever you login or make a withdrawal from your account.
This makes it much harder for hackers to gain access to your account even if they manage to steal your password somehow.
Lastly, always be sure to withdraw your coins from exchanges into your own personal wallet that you control the private keys for. This way even if an exchange is hacked or goes bankrupt, your coins will still be safe as long as you keep them in your own wallet rather than leaving them stored on the exchange itself.