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.

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.