Unquestionably, one of the biggest and most well-known cryptocurrency marketplaces in the world is Binance. Since entering the cryptocurrency market in 2017, it has surpassed most of its rivals and become well-known among cryptocurrency users all around the world.
However, being a household name doesn’t necessarily mean being a safe cryptocurrency platform. So, is Binance Safe? Can you trust the platform with your virtual assets? Let’s take a look.
Although the security measures used by cryptocurrency platforms have improved over time, there are still several security concerns facing the sector. A bitcoin platform somewhere in the globe experiences a breach or two about once every month or so. These hacks are expensive for both the platforms and the end consumers.
No matter how big or tiny, a crypto platform’s scale or security measures wouldn’t stop hackers from attacking it. A cyberattack cost the well-known KuCoin cryptocurrency exchange company, which is domiciled in Seychelles, $281 million in 2020. Similar to this, a $610 million breach occurred at the lesser-known Poly Network in 2021. The Nomad Bridge recently experienced security lapses that resulted in the theft of approximately $200 million. Any platform, no matter the size, can be targeted.
For the Poly Network’s breach, at least, the hackers subsequently returned the stolen funds, but this isn’t always the case. The possibility of losing your funds forever is very real. However, this doesn’t mean crypto platforms aren’t safe—they try to be. Different crypto platforms employ different strategies to protect their platforms and ultimately your virtual assets.
As a result, some platforms are more susceptible to hacks than others. This is why it’s important to ask questions about the safety of a crypto platform before going all in.
Is Binance Safe?
As recently as October 6th, 2022, Binance had its share of security breaches. In an interview with CNBC, Binance CEO Changpeng Zhao confirmed that the crypto giant suffered a $570 million hack, although the company was able to subsequently minimize the loss to less than $100 million. So, if Binance suffers hacks as well, can you trust Binance with your funds?
For starters, the funds of Binance users are safe, despite the latest hack. Apart from the core blockchain security strategies it uses, Binance has other ways to protect your money. One such way is the Secure Asset Fund for Users (SAFU). SAFU is an emergency insurance fund that holds a percentage of all trading fees on the Binance platform to indemnify users in case of a financial loss.
So, if a hack was to occur, and users’ funds are stolen, the Secure Asset Fund would be used to reimburse users for the loss. When Binance suffered a $40 million hack in April 2019, all affected users were duly reimbursed.
Of course, SAFU isn’t the only security card Binance has to play. There are several other accounts and platform security features in place to protect your funds. Account-based features like device restriction, address whitelisting and two-factor authentication make it incredibly hard for malicious actors to compromise your Binance account. If you have a Binance account, here’s how to secure your Binance account with two-factor authentication.
Binance Isn’t Perfect, But It’s Reliable
Despite a few security lapses in the past, Binance normally discloses these lapses and takes steps to remedy any gaps in security.
Binance is not flawless, but it is one of the safest cryptocurrency exchanges you can trust with your assets if you’re new to cryptocurrency and wondering if it is safe.
