Binance, Exchanges

Is Binance Hot Wallet Safe?

Binance, one of the world’s largest cryptocurrency exchanges, has been hacked. The attack took place on May 7, 2019 and resulted in the loss of over 7,000 BTC, worth approximately $40 million at the time.

While the hack was certainly a major setback for the company, it’s important to note that Binance’s hot wallet, which was Targeted in the attack, contained only 2% of the company’s total BTC holdings. The remaining 98% was safely stored in cold wallets, which were not affected by the hack.

This incident highlights the importance of storing cryptocurrencies in a cold wallet, which is not connected to the internet and therefore much more difficult to hack. For most people, a hot wallet is sufficient for day-to-day transactions.

But if you’re holding a large amount of crypto, it’s best to transfer it to a cold wallet for long-term storage.

So while Binance’s hot wallet was not as secure as it could have been, the company’s overall security measures prevented a much worse outcome. And for that reason, we believe Binance is still a safe and reliable place to trade cryptocurrencies.

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