The largest cryptocurrency exchange in the world, Binance, boasts a daily trade volume in the billions. Its unwavering security and broad product line-up are to thank for its exceptional growth. Binance features many tools like Auto-Investment, an NFT generator, and strong crypto-staking support in addition to supporting more than 300 altcoins and more than 1,000 crypto trading pairings. If you are new to Bitcoin, take the time to learn about the pitfalls associated with Bitcoin’s proof-of-work consensus mechanism.
Binance: Is It Secure for Storing Your Cryptocurrency?
Remember that Bitcoin platforms are susceptible to attacks, whether direct or indirect, just like any other internet service. Binance stands apart in this sense, though. Binance scored top marks for having good cybersecurity in a 2019 assessment by the Xiamen SlowMist Technology security company. The examination investigated many areas, including software integrity, server security, wallet security, and private key security, all of which got Binance top grades.
Trading Platforms of Binance
The three primary trading platforms run by Binance are Binance.com (for international users), Binance US (for Americans), and Binance DEX. Binance DEX operates differently from Binance.com and Binance US, which safely manage client assets and rigorously respect rules. Users can transact directly with one another on this decentralized exchange.
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Anti-money laundering (AML) and Know Your Customer (KYC) procedures, which are essential for monitoring cryptocurrency transactions, were absent from Binance in the past. To comply with the rules, Binance launched KYC and AML in 2021. Although Binance US caters to American customers, Americans cannot access Binance.com or Binance DEX. Due to trade restrictions, these platforms collectively block users from 28 countries.
Ensuring the Safety of Your Binance Account
It’s advised to follow common security precautions to protect your money on Binance.
1. Use 2FA
By allowing two-factor authentication (2FA), Binance provides users with an additional layer of security. SMS, Google Authenticator, Binance Authenticator, and YubiKey are the four available modalities. Your phone receives a code through SMS for verification.
You scan a barcode to connect the Google and Binance Authenticators app with your Binance account. Each time you log in, the app creates a new code. SMS can be subject to SIM-swapping and SS7 network assaults, making Google or Binance Authenticator more secure than SMS.
2. Create a Strong Password
Establishing a strong password is the first step in protecting your Binance account. A strong password should be composed of at least 12 characters and ideally 16 characters. There’s a lot of use of numbers, symbols, and a mix of capital and lowercase letters.
It may be difficult to remember such a long password, thus utilizing a secure password manager is advised to protect your account. Passwords from other systems should never be reused. This security measure is essential because, in the event of a breach elsewhere, hackers may use these credentials to access financial platforms like Binance.
3. Restricts Binance Withdrawal Addresses
Address Management, a function provided by Binance, ensures that users can only withdraw funds to specified accounts. Each address added to the whitelist through this approach requires an email confirmation. Enabling two-factor authentication on your connected email account is a smart move to boost security. This stops unlawful withdrawals from accounts under hacker control.
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4. Avoid Storing Your Funds on an Exchange
Binance stands for itself as a very safe cryptocurrency exchange by providing strong security measures and giving users full control over their funds. Despite having security difficulties, like other visible exchanges, Binance is now the biggest on the planet. Despite these achievements, it’s still suggested to store your trade cryptocurrency only on exchanges. It’s advisable to transfer money to a secure wallet because it could be risky to maintain sizable quantities on an exchange.