Binance, one of the world’s largest cryptocurrency exchanges, has been in the news for all the wrong reasons lately. In late March, it was announced that hackers had stolen 7,000 Bitcoin from the exchange, worth over $40 million at the time. This sent shockwaves through the crypto community, and many people began to wonder – is Binance safe?
The short answer is yes, Binance is safe. The hack was a wake-up call for the exchange, and they have since implemented a number of security measures to make sure that something like this doesn’t happen again.
However, no exchange is 100% secure, and there is always a risk when holding any cryptocurrency on an exchange.
In this article, we will take a look at the security measures that Binance has in place, as well as what you can do to keep your funds safe.
Binance Security Measures
Two-Factor Authentication
One of the most important security measures that any exchange should have in place is two-factor authentication (2FA). This adds an extra layer of security by requiring you to enter a code from your phone whenever you log into your account or make a withdrawal.
Binance offers 2FA through Google Authenticator or SMS authentication. We recommend using Google Authenticator as it is more secure, but SMS authentication can be helpful if you are travelling and don’t have access to your phone.
Withdrawal Limits
Another good security measure is withdrawal limits. By limiting the amount of cryptocurrency that can be withdrawn from an account in a 24-hour period, exchanges can help prevent large-scale hacks.
Binance has implemented withdrawal limits on all accounts, and these limits can be increased by completing KYC verification.
KYC Verification
Know Your Customer (KYC) verification is required by most exchanges in order to comply with anti-money laundering regulations. This involves uploading some form of ID and proof of address.
While this may seem like an inconvenience, it does add an extra layer of security as it means that only people who have gone through this process will be able to withdraw funds from an account.
KYC verification can also help to increase withdrawal limits as mentioned above. If you are looking to trade large amounts of cryptocurrency, then we recommend getting verified on Binance as soon as possible.
Cold Storage
One way that exchanges can protect user funds is by storing them in cold storage. Cold storage refers to keeping cryptocurrencies offline in a wallet that is not connected to the internet.
This makes it much more difficult for hackers to steal funds as they would need physical access to the wallet in order to do so.
Binance stores the majority of user funds in cold storage and only keeps a small amount in a hot wallet for withdrawals and deposits. This helps to keep user funds safe and secure while still allowing them to be easily accessed when needed.