What Is Binance and Are Your Crypto Holdings Safe There?

  • What Is Binance and Are Your Crypto Holdings Safe There?

With a daily trade volume valued in the billions, Binance is the largest cryptocurrency exchange in the world. Its extensive product line and dependable security have been major factors in its expansion over the years. Binance provides extensive support for crypto-staking, Auto-Investment, an NFT generator, and the trading of more than 300 altcoins in addition to more than 1,000 crypto trading pairs.

The Binance Product Portfolio

Binance is a cryptocurrency-focused service provider that was established in 2017 by Chinese-Canadian businessman Changpeng Zhao. An overview of some of Binance's older products can be found below.

Trading Platforms

At the moment, Binance operates three primary trading platforms. They are Binance.com, Binance US, and Binance DEX—the main service for customers from other countries. Binance DEX is designed differently than Binance.com and Binance US, which hold assets on behalf of clients and strictly adhere to regulatory statutes.

Trading Platforms

Users can trade independently and directly with other traders on the DEX platform, a decentralized exchange. The primary tools for tracking crypto transactions and users were the Know Your Customer (KYC) and Anti Money Laundering (AML) processes that Binance lacked for a considerable amount of time. However, in order to comply with regulations in a number of nations, Binance announced in 2021 that it would include KYC and AML on the platform.

Binance.com and Binance DEX do not accept American citizens, whereas Binance US primarily serves U.S. customers. However, due to trade restrictions, the three websites collectively deny access to Binance services to users from 28 nations. Albania, the Democratic People's Republic of Korea, Cuba, Iran, Iraq, Somalia, Sudan, Syria, Venezuela, and Zimbabwe are currently on the list of countries that are blocked by Binance.

Binance Coin

The Binance Chain blockchain system serves as the foundation for Binance's native cryptocurrency, Binance Coin (BNB). In the Binance ecosystem, BNB is used as an investment coin. Due to its discounted rates, it is also frequently used by Binance clients to pay trading fees on its platforms, expanding its use cases.

The Binance Visa card, which is linked to your Binance account and allows payments using Bitcoin and BNB coin, is currently accepted by over 40 million merchants worldwide.

The Binance Smart Chain

The decentralized applications (dApp) ecosystem is supported by the Binance Smart Chain (BSC), an additional blockchain system that runs in parallel with the Binance Chain. It supports staking projects and lets smart contracts be made on the blockchain.

It was launched in April 2020 and has gained a lot of traction in the decentralized finance (DeFi) community due to its cross-chain compatibility, low fees, and scaling capacity. Peer-to-peer financial services based on the blockchain that enable users to lend, borrow, and invest money are known as DeFi projects. Cryptocurrency enthusiasts see them as a way to effectively circumvent traditional banking institutions because they typically lack centralized control.

Harvest Finance, Value DeFi, and PancakeSwap are notable DeFi projects that rely on the BSC system. BSC also houses NFT projects like the Battle Pets gaming NFT and the BakerySwap marketplace.

Is Binance Safe? Should You Keep Your Crypto on Binance?

It is essential to keep in mind that all online resources, including cryptocurrency platforms, are susceptible to direct or indirect attacks. Naturally, certain platforms are more vulnerable than others.

In terms of cybersecurity, Binance's platforms have received high marks. A 2019 report from the security company Xiamen SlowMist Technology claims that Binance's extensive security measures surpass those of many other crypto exchanges. The company currently rates it as "Excellent." The company looked at server security, wallet security, private key security, and software integrity as structures.

Binance Secure Asset Fund for Users

In 2018 Binance launched an emergency fund to protect users from market issues, emergencies, and other unforeseen crypto problems. This was done to improve user safety. BNB, BTC, USDT, and TUSD make up the approximately $1 billion Secure Asset Fund for Users (SAFU).

2023 SEC Allegations Against Binance

The Securities and Exchange Commission (SEC) of the United States brought charges against Binance in June 2023. Operating unregistered exchanges, clearing agencies, broker deals, and misrepresenting Binance's trading controls and oversight are among the allegations. The US platform. It could put Binance and its users in grave danger if found to be true.

However, Binance is still going strong, in contrast to the reaction of the market during previous SEC investigations of other crypto firms, where money pours out of the exchange and causes price volatility. The allegations don't seem to bother its users, and even though the crypto market was shocked, prices didn't soar like they did when the FTX exchange filed for bankruptcy.

However, until the legal dispute is resolved, it would be best not to keep any funds on Binance due to the allegations and potential issues.

How to Secure Your Binance Account

How to Secure Your Binance Account

It is best to adhere to standard security procedures on Binance to safeguard your funds. An overview of some of the best measures can be found below.

1. Create a Strong Password

The first thing you need to do to protect your Binance account is make a strong password. A strong password typically consists of a combination of lowercase and uppercase letters, numbers, and symbols. It should be at least 12 characters long, preferably 16. A password of that length is hard to remember, so we recommend using a secure password manager to protect your account.

Passwords from other platforms should not be used again. This is because hackers could use the credentials to unlock accounts on financial platforms like Binance if there is a breach on another network.

Passwords that are simple to guess should also be avoided. This is due to the ease with which brute-force password-cracking tools can decipher them.

2. Use Two-Factor Authentication (2FA)

Through the use of two-factor authentication, Binance users are able to enhance the security of their accounts. There are four authentication methods available to clients: Yubikey, Binance Authenticator, Google Authenticator, and SMS.

Use Two-Factor Authentication

Users can use SMS-based two-factor authentication to verify their account credentials by receiving an SMS code to their phone number. A barcode scan is required to establish an initial connection between the Binance account and the app with Google Authenticator and Binance Authenticator. Whenever this is finished, the application will produce an irregular open code each time the client needs to sign in.

SMS verification is less secure than using Google Authenticator or Binance Authenticator to protect the account. This is because a SIM-swapping attack can get around SMS authentication. Additionally, the security feature is susceptible to SS7 network interception methods.

In addition to SMS, Google Authenticator, and Binance Authenticator, Binance clients can use YubiKey to protect their accounts. A user only needs to connect to the platform and verify their Yubikey.

When the owner wants to log in again, the key can be plugged into a USB port to verify the account. To validate accounts, the hardware-based authenticator mostly uses the cryptographic technology of Near-Field Communication (NFC).

3. Limit Binance Withdrawal Addresses

Users of Binance have the option to only withdraw assets from specific accounts. A whitelist is used to allow withdrawals in the Address Management feature. An email confirmation is required for each added address. Because of this, enabling two-factor authentication on the linked email address is also the best way to guarantee email security.

By activating this safeguard, hackers are prevented from making arbitrary withdrawals from their accounts.

Never Keep Your Funds on an Exchange

Since its inception, Binance has been regarded as one of the safest cryptocurrency exchanges. It gives users control over their funds and offers numerous security options. All major cryptocurrency exchanges have experienced security issues, including Binance. However, these difficulties have not deterred Binance from becoming the largest cryptocurrency exchange in the world.

Even so, you should only keep the cryptocurrency you trade on an exchange, even with those security credentials. Moving your cryptocurrency into a safe wallet is always preferable because keeping a large amount of cryptocurrency on an exchange can result in other problems.



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