Home News Binance Exchange Review: Is Binance Exchange Safe?

Binance Exchange Review: Is Binance Exchange Safe?

by Russell Crowe

Binance is the largest cryptocurrency exchange in the world in Malta. The company was started in China earlier but then found a more cryptocurrency-favorable environment. Binance started in 2017, and though it is not registered with a legislative board, it drew the attention of a multitude of investors to become the leading cryptocurrency exchange.

It is a trustworthy exchange because of its security measures as PCI Scanning, anti-phishing code, pseudonymization, Secured Sockets Layered encryption technology, and internal data access restrictions, all add to its protection to customer’s funds and info from personnel not authorized.

Binance is for the beginners and experienced traders as it offers different trading interfaces for different categories of traders. For more experienced, professional traders, it provides advanced techniques for trading as margin trading. For novices, it allows the quick exchange for ETH or BTC or hundreds of Altcoins that are available on the platform.

Binance is known for having the best exchange capabilities. The Binance platform has evolved today and is now offering multiservice options as futures trading and staking. Its popular extension Launchpad provides a chance to launch IEOs in a safe yet a crowded market environment.

For its global merchants, Binance has launched the Binance P2P or peer2peer and as Binance global P2P merchant. You can earn revenue by offering fiat currency payment solutions. There are zero transaction fees, and additionally, you get professional support from Binance. 

Is Binance Exchange considered Safe?

As per CryptoMoonPress, When the exchange incurred a cyberattack in 2019, it lost 7,000 BTC. This would have been the end of any exchange in this situation but not for Binance. Binance made sure that none of the users lost any coins and quickly recovered all 7,000 of them. The platform boosted security measures and made it into one of the safest exchanges in the world.

In order to do this, it uses the Two Factor Authentication popularly referred to as 2FA to protect it from fraudsters and hackers from surpassing the security and steal info. The users are able to set anti-phishing code so they may be able to tell apart from the genuine and the fake emails from phishing websites. Only after Binance receives an email from the user, does it process the withdrawal request.

Binance Exchange

Binance is a centralized exchange cryptocurrency broker because it deals with crypto assets only as- Bitcoin, ICO tokens, or Altcoins. Buying and selling certain cryptocurrencies is enabled with Binance’s and Simplex partnership. Users can exchange tokens and coins quickly without any account verification documents. However, the unverified accounts only allow limited withdrawals of 2 BTC in 24 hours. Comparing Binance to other exchanges, it charges only 0.1% fees. Users get more discounts for holding a BNB Binance coin.

Binance Wallet

There are “hot” or “cold” cryptocurrency wallets, and they operate differently. Once your Binance account is created, you can send the funds to your wallet. Basically, you are using the hot wallet. Hot wallets are connected online, and the funds are easily available and can be exchanged quickly by traders and users. Cold wallets are not connected online and require a physical medium where keys can be stored offline. They are resilient to hackers and thus are safer to store your coins. So, Binance makes use of the Cold storage method as it holds only an insignificant percentage of coins in its hot wallets, and the rest is stored in cold storage, which is disconnected from the internet. Binance DEX offers an alternative to users, so they don’t keep their coins in a centralized exchange. The decentralized trading platform allows you to have access to their private keys, and simultaneously you can trade from cold storage devices as hardware wallets.

Opening a Binance Account

You will be required to create an account to use the exchange platform. You need not verify your account at Level 1, which allows a withdrawal limit of 2 BTC per 24 hours.

Level 2 allows 100 BTC in 24 hours, and you are required to put up your photo ID and wait for the approval. For higher limits, you can contact them directly. Depending upon the availability of support staff, the time for verification may vary. So keep that in mind if you are about to withdraw large amounts. Ensure to complete the verification step before proceeding to trade or deposit large sums on the Binance Exchange.

Having done this, go ahead and fund your Binance account. Even though you can select from many cryptocurrencies, it is best to start with BTC or the ETH.

To add funds, visit “Funds” at the top of the site, then click on the “Deposits / Withdrawals” link and select the currency you want to send. Click on “Deposit,” which will generate your wallet address.

Go ahead and send your funds to this address. You can now begin trading on the Binance platform. Note that different deposited currencies take a different amount of time to show up as it depends upon the currency’s blockchain. For example- Ethereum is faster than Bitcoin.

You are good to go, and now you can begin trading or exchanging and making investments on various digital currency pairs.

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