What you must know before signing up.
The ultimate question: is Binance really Safe?
Binance exchange does boast of some of the very lowest fees in the crypto exchange space and crypto industry in general, but is it really safe to use? Let’s explore its security practices to start with.
Article by A.O
The content on this page is provided for informational purposes only and in no way financial advice. If you need to make proper financial decisions pls contact your financial advisor or lawyer especially if it deals with a large portfolio of a substantial amount. this article however is curated from proper research and first hand Intel on what you need to know about Binance before signing up to use their platform.
Let’s get started.!. Before you learn to run as a baby, you must first learn to walk.
This article is a baby walker, here to assist you in providing accurate, standard and basic knowledge about Binance and it’s safety standards to help you use the system to walk properly before running.!.
Let’s climb onboard.
Binance is well known and very popularly accepted as a crypto exchange which offers very low fees and also features some advanced trading tools. However it’s completely natural a good thing that may have questions as to whether its security is up to standard or just a bluff.
In this A.O guide, we’ll explore and dive deeper into Binance’s core security practices, and we’ll also be consider whether the site is a safe and secure exchange for one to use comfortably without fears. We’ll be dissecting some certain ways you can implement to help you protect your crypto while using Binance as an exchange.
At this point it will be very important for you to take this into consideration, this insider guide is about Binance.US, Canada, UK, Australia or the version of binance available in accepted countries. We will also handle Binance.com outside of accept countries if it is relevant to the U.S. version as well.
So, back to the baby elephant in the room!
is Binance safe for you as a beginner, a light trader or just as someone who wants to get started with the exchange site?
Is Binance Safe?
Without beating around the bush, the flat line is that Binance is a very safe crypto exchange compared to 98% of exchanges out there (with some caveats of course). It does store the vast bulk of its cryptocurrency in “cold wallets” these wallets are not connected to the internet in anyway so it’s a hellish walk for hackers to even attempt. This is done to drastically limit losses in a case of a hack and this makes it highly and very unlikely that an attack of any sort will lead to Binance becoming insolvent. This simply means that this strategy ensures and makes it certain that if the exchange somehow happens to suffers a major attack, it’s users are likely to be reimbursed by the company to the very last cent.
Now isn’t that just wonderful.
Binance also has in place a security measure where they offer hardware 2FA, a live and real-time monitoring system set in place to detect any slight suspicious activity, the system is set up so that security notifications using email, and many other advanced security features will detect and cause an alarm which calls attention and activates certain safety protocols into place instantly to secure it’s users.
Binance’s Basic user-friendly Interface
Overall, Binance is quiet a highly secure exchange.
On the other hand, as nothing can be 100% perfect, no crypto exchange is 100 percent-secure, including Binance itself. In the next few sections below, we’ll discuss its security practices in deeper detail, and we’ll consider some ways in which these practices can be-passed by attackers who deeply just wish to steal your crypto. We’ll also talk about some ways that you can help yourself to prevent these prevalent attacks.
First of, let’s run through the primary security practices of Binance.
Binance.US Security Practices in place.
Here are some of the few Binance’s security measures put in place to help to prevent cyberattacks:
Cold wallets. As we have brushed through this earlier, if you remember the notorious Mt. Gox hack,1 security experts have warned exchanges very strictly to always at all times keep the vast majority of their cryptocurrency on devices and systems which are not directly or indirectly connected to the internet in anyway- they have been advice to keep it completely cold. Binance doesn’t disappoint or fall short in this field, as it states that the “vast majority” of its crypto assets is constantly stored in cold wallets, outside of the grasp of cyberattackers.
So sorry hackers
, no going close to our precious crypto assets this time.
Two-factor authentication (2FA). Like most cryptocurrency exchanges out there today, Binance allows you to implement the 2FA security protocol on your account. If you activate this feature, you’ll be prompted and required to enter a code sent to you from your phone every time you try to log in or make a withdrawal. You can use the normal text messaging in your phone or go with an authenticator app to receive the code.
Real-time monitoring. Binance also features a security protocol where it tracks every action done on the exchange at every given point in time, and it has a modified up to date algorithm that active and accurately analyzes activity to see if any of it is unusual.
Any action identified or deemed as suspicious activity actually results in a 24-to-48-hour freeze on all assets both on withdrawals and any other activities from your account. However, If you actually did authorize or permit such action, you can proceed to contact customer service to have the account unfrozen, or if you have the time and patience, you can just wait for the time period to pass so your account can be unlocked. But in a case where your account was hacked, the 24-to- 48-hour freeze should definitely give you enough and adequate time to alert the Binance staff that your account has been compromised so they act immediately.
Access control. If you want further protection on your account, you can set up a feature called “access control” mechanisms on Binance this limits your withdrawals to only certain IP addresses or wallet addresses at best.
Organizational Security. In this security protocol, Binance utilizes advanced organizational security systems to help keep its cryptocurrency and community secure, including adding features like threshold signature schemes (TSS)2 which requires multiple parties to authorize a transfer easily from one wallet to another.
Security notifications. Binance security notification works in a way that If Binance’s system happens to detect any suspicious activity on your account, it immediately without any time lag notifies you through email.
Secure Asset Fund for Users (SAFU). Binance keeps in store and reserve a $1 billion fund which is made available to reimburse its users in the case when there is a major breach of the Binance’s platform. This certifies that no matter what happens the funds will help to make certain that the company will not go bankrupt or fail to pay its obligations to users who may have suffered loss of any kind.
Binance has and implements some of the most advanced security systems of any crypto exchange out there till date. But it isn’t completely secure as nothing is exactly 100% complete. In the next section, we’ll dive deeper over some risks of using Binance.
Risks associated with Using Binance.US
No matter how secure Binance may seem, it is still based off the old web2 platform, Web 2.0 app. In other words, it does still need a username and password for your login to account instead of your crypto wallet. This simply means that when you set up an account with the Binance platform, you have to think up a password to use to log in which will be your continually used password.
Note: The present Web 2.0 system is gradually going out of relevance just like web 2.0 replaced web 1.0 , web 2.0 is being replaced by “Web 3.0,” which makes use of crypto wallets instead of passwords for its logins.
This kind of login system gives room to a lot of login and security problems. Let’s name a few, you may be very tempted as most of the population are to use the same password for Binance which you use for all your other websites or online activities, just so that it would be easier for you to remember your password. But this simply means that if any hacker or attacker breaches the security and safety of another website that you use, he will easily pick up your password like sitting ducks and use your account to roast ducks.
Another issue is that Binance gives you room or access to reset your password using your email address. So if an attacker however gets a hold or access to your email account, he can change your Binance password and lock you out of your account.
Enabling 2FA can help to prevent these types of attacks. But here is the downside many people receive their 2FA codes into thier text messages. These messages can easily be intercepted if the attacker or hacker calls up your phone company and perfectly pretends to be you, especially when he tells your phone company that you desire to transfer your phone service to your “new phone” (their phone).
Finally, another concern in security is that there is always the ever present risk that the Binance platform in itself could be breached somehow. This is exactly what happened back 2019 in the infamous Binance.com hack.
Binance Hack
Dating back to May 2019, Binance.com announced to the general public that a group of hackers had somehow managed to steal “a large number of API keys, 2FA codes, and potentially other info from the system.”3 The hackers implemented and used a large array of methods to steal this data, These methods included using viruses, phishing, and other methods. Using this data, they were able to make a withdrawal of about $40 million worth of Bitcoin.
However, after clearing up the issues, Binance admitted that the hack was not the fault of its users, and like we said earlier, we reimbursed all of its customers’ accounts from the SAFU immediately as it occurred. None of Binance’s users lost any crypto or cash from the hack as they were all settled.
This hack actually only affected the international version of Binance. The Binance U.S. branch has had an outstanding record as it has never been hacked. But because Binance.US and Binance.com use a similar security system which is top notch, we thought we should make you aware of this issue for your own discretion.
In a nutshell, we think Binance actually acted appropriately in response to the hack as thy sprung into action immediately. It recognized immediately that the hack was caused by a faulty platform security, and not by anything which the users could control. So to control the issue, it reimbursed all of its users’ accounts, and only Binance itself actually did loose money.
In the following section, we’ll be going over some steps you can take to help keep your Binance account very safe and secure. This should help you to further prevent your cryptocurrency from being stolen out of your Binance account. And if in a case when it happens, it should make it more likely for you to be reimbursed easily.
Binance’s current security promise to its users
How to Stay Safe While Using Binance
Here are a few provided steps you can take to help protect the crypto you buy through Binance.
1st Step.
Make sure you enable two-factor authentication (2FA). If you do enable 2FA, you’ll be very much required to enter a code which will be sent to your phone every time you try to log in or make a withdrawal. This will help you to prevent your account from being easily accessed in case your password is exposed or your email account has been compromised.
2nd step.
Make sure you use a strong password. Ideally, the password that you decide to use for Binance should not be the same with the password you use on other websites. That way, if any other site you make use of gets hacked, your Binance password won’t be exposed or revealed. In addition, you can make the password hash even harder and more difficult for hackers to crack by combining capital and lowercase letters, numbers, and special some characters, and by making the it as long as possible. This will add an extra layer of security to it on the long run.
3rd step
Be sure to watch out for malware. One of the most easy methods for a hacker to get your login info is to infect your PC with strange malware. The attacker or hacker will send you an email, the email will look like it’s from someone you know, and it will usually contain a file attached in it which appears to be a .pdf or some other legitimate file that you want.
4th step
When you click and open the file, it immediately infects your computer with pre-programmed software that searches all through your computer looking for sensitive data. At this stage, it can proceed to steal your sensitive passwords and if your Binance password is there within your browser (assuming you’ve easily saved it there for convenience).
To help protect against this threat, it is very Paramount that you scan file attachments with a good antivirus program. We have made a complete convenient well researched and extensive list of the very best antivirus programs today to help you get started easily and secure all your accounts with any hassle. preview complete list below.
And Webroot
Either of these top end antivirus software's and programs can easily help keep your pc and your browser safe and prevent hackers from having access to your data to carrying out any suspicious activity on your sensitive data and information, so if your data is important to you, ensure to checkout, gain access and activate at least one of the programs which is most convenient for you.
Avoid getting phished. We don’t mean the kind of fishing where you catch fishes sitting with the in-laws by the lake on a cool evening. This has to do with falling prey or victim to fake sites posing as the original. Another angle of attack is for the thief or hacker to set up a fake Binance site. After then, you get an email from him claiming claiming to be Binance and instructing you to log in for some strange out of the blue urgent reason.
If you fall for this, When you click the link in the email sent to you, it sends you to the fake set up site, and when you attempt to log in, the attacker accesses your username and password and can do whatever he pleases with those details.
To help prevent this from happening and securing your account, check the sending address on each and every email that alleges to come from Binance itself, especially if it encourages or prompts you to click a link. The most authentic email will usually come from the domain @binance.us or @binance.com, so check out for those as a fake one may come from @ww-binance.com or some other weird and strange misspelling.
These are the two most authentic websites below.
so pls watch out for any other address which is not in the format as the ones above.
More importantly, to be very sure you don’t fall flat, check the URL address of the website the link leads you to. You may notice that the domain it leads you to is not binance.us. To be even more and extra secure, you can take it a step further and set up an standardized anti-phishing code through the Binance app interface you operate on. Once this is done, the code will automatically be included in any email from Binance themselves, making it easier to spot fakes right from the onset.
Binance’s Advanced Interface
Consider this, when withdrawing your cryptocurrency, the most profound way to protect your crypto is to completely take it out of the Binance exchange once and for all if need be. Withdraw it into your personal private wallet, and secretly save the seed words to your wallet in a very secure location within your house. A document us required that only you can have access to and only you knows where it is kept especially if you keep large funds.
This eliminates issues with with usernames and passwords completely, making it very much more difficult for any hacker or attacker to get your sweet crypto.
No crypto exchange is perfectly and 100% safe. But following these tips would greatly and dramatically increase your chances of keeping your cryptocurrency safe and protected.
Unto some deep final thoughts on Binance safety.
Final Thoughts on Binance Safety
Binance is a very excellent crypto exchange for serious traders to utilize in their trading. It offers very low fees for transactions and commissions as well, a large variety of coins, and advanced trading tools are the heartbeat and star of its operations. Most importantly, Binance is, compared to the competition a fairly safe crypto exchange, with lots of advanced security features.
But no crypto exchange is completely secure. In this A.O article, we’ve explained in details the major security features affecting Binance, the risks associated with using Binance, and some ways that you can help to completely limit and avoid these risks.
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