Is Binance Safe? Learn How to Guard Your Crypto (2024)

Binance is a leading crypto exchange that has various security measures in place to keep your crypto assets safe. The Binance.US platform, which serves U.S. clients, employs two-factor authentication (2FA), real-time monitoring, data encryption, secure storage, and IP address whitelisting to protect your investments.

Additionally, Binance.US uses proof of reserves to show its clients that it carries enough liquid balances to remain solvent. However, you should still take extra measures to increase your security.

We’ll cover whether Binance is safe to use and tips you can follow to ensure a smooth, secure experience.

Is Binance safe?

Binance is the largest cryptocurrency exchange in the world, available via Binance.com. It offers the ability to purchase and trade a wide variety of digital assets, including popular cryptocurrencies such as bitcoin (BTC), ethereum (ETH), and dogecoin (DOGE). It also has a diverse range of altcoins and crypto tokens associated with crypto industries like the Metaverse, DeFi, gaming, NFTs, and more.

To use Binance in the U.S., you would use Binance.US, the U.S.-based platform. This platform operates independently from Binance.com, but both platforms share many security measures.

Security measures on Binance.US include investment-related measures such as:

Security measures on Binance.US also include cybersecurity-related measures such as:

Despite these measures, Binance.US doesn’t guarantee absolute security, so it’s best to remain cautious when you’re using this trading platform to access the crypto market.

Binance pros and cons

Has Binance ever been hacked?

Yes, Binance has faced a number of cybersecurity breaches in the past.

In 2019, Binance experienced a significant security breach where hackers stole over $40 million in bitcoin, along with two-factor authentication codes and API tokens, raising concerns about user account security.

In response, Binance's CEO pledged to enhance security measures, focusing on API, 2FA, and withdrawal validation processes. The company pledged to strengthen its risk management, user behavior analysis, and Know Your Customer (KYC) procedures, as well as implement hardware security tokens like YubiKey.

But in 2022, Binance confirmed a $570 million theft following a hacking attack against a blockchain it runs. Then, in 2023, a hacker stole $27 million worth of tether (USDT).

How does Binance.US protect your assets?

Binance has a complete product suite dedicated to protecting its customers’ assets.

1. Secure Asset Fund for Users (SAFU)

Binance safeguards assets through the Secure Asset Fund for Users (SAFU), established in July 2018.

This emergency fund is reinforced with a portion of trading fees, ensuring its capacity to protect user funds. As of January 29, 2022, SAFU holds a value of $1 billion, subject to market fluctuations, with BNB, bitcoin, and tether forming its core assets.

2. Proof of Reserves (PoR)

This is a protocol that enhances transparency and trust in the digital asset ecosystem. It allows cryptocurrency exchanges such as Binance to prove that they hold sufficient reserves to cover the digital assets they owe to their customers.

This process involves a series of cryptographic checks that validate the total amount of assets held by an institution without revealing sensitive information about individual account balances. The PoR protocol is designed to protect user assets by minimizing the risk of insolvency and fraudulent activities.

3. Secure storage

Binance uses secure offline storage (often referred to as “cold storage”) to protect your assets. Offline storage uses a secure environment that’s not connected to the internet. This prevents online threats such as hacking and phishing attacks.

This method employs advanced cryptographic techniques to ensure that only authorized individuals can access the stored assets. The private keys associated with the digital assets are encrypted and securely stored in offline devices in secure locations.

4. Whitelisting

Binance protects assets using a withdrawal whitelist, like a list of trusted cryptocurrency addresses. You can set this up to ensure that you can only withdraw U.S. dollars (USD) or other fiat currencies or crypto funds to previously approved addresses. It's a security feature that prevents unauthorized transfers of your assets.

To enable it, log in to your Binance account, go to the security settings, and turn on the withdrawal whitelist function. Once activated, you can only transfer to the addresses on your approved list, adding protection to your funds.

You can also use IP and API whitelisting to limit which devices, services, or software can access your account.

5. Two-factor authentication (2FA)

Two-factor authentication adds an extra layer of security by requiring you to provide verification forms before accessing your accounts. This feature is crucial for protecting your account from unauthorized access.

6. Real-time monitoring

Binance relies on real-time machine learning to secure its ecosystem and shield you from potential threats.

This sophisticated system continuously scrutinizes the platform for suspicious activities and utilizes a streaming pipeline for swift, real-time responses. Binance's dedicated risk artificial intelligence team, composed of machine learning engineers and data scientists, combats fraud and ensures rapid reactions to potential threats.

This cutting-edge AI infrastructure empowers Binance to protect its users effectively and respond swiftly to any malicious activity on the platform.

7. Data encryption

Binance safeguards assets through comprehensive encryption measures. It employs end-to-end encryption for all transactions, ensuring that only the sender and receiver can decrypt the data. This approach secures various forms of communication, from text and emails to files and video calls, to prevent unauthorized access, even by the server facilitating the connection.

8. Anti-phishing email codes

This is a personalized security feature designed to protect you from phishing attempts. You can set a unique code that will be included in all legitimate emails from Binance, helping you distinguish genuine communications from potential phishing emails.

7 tips to stay safe on Binance

Binance offers a robust set of security features, but you can further enhance your security by following these tips.

1. Use a virtual private network (VPN)

Using a VPN with the Binance exchange can significantly enhance your online security and privacy.

• How to implement: To use a VPN with Binance, choose a reliable VPN service, install its app, and select a server location. Verify the VPN is working correctly before logging in to Binance, and make sure to perform transactions over the encrypted connection.
• Benefits: A VPN boosts security on Binance by encrypting your internet connection, protecting your identity, and safeguarding your data from cyberthreats. It also ensures uninterrupted access to Binance by bypassing geo-restrictions.

Best VPNs for Binance

Some of the best Binance VPNs include:

• NordVPN: NordVPN has 5,000+ servers and supports up to six simultaneous device connections. It enhances security with obfuscated servers and uses an AES-256-GCM encryption algorithm alongside a 4096-bit DH key for added protection.

  Get NordVPN | Read Our NordVPN Review

• Surfshark: Surfshark allows an unlimited number of device connections simultaneously. This VPN provider offers access to over 3,200 servers and supports the WireGuard, IKEv2, and OpenVPN protocols using AES-256 GCM encryption.

  Get Surfshark | Read Our Surfshark Review

• CyberGhost: CyberGhost has over 10,400 servers in 100+ countries and includes a kill switch, DNS leak protection, and a no-logs policy. CyberGhost VPN supports the OpenVPN, IPsec (IKEv2), and WireGuard protocols.

  
  Get CyberGhost | Read Our CyberGhost Review

You can also explore additional options in our list of the best VPN apps.

2. Secure your device against malware

• How to implement: Regularly update your operating system and applications to patch security vulnerabilities. Install reputable antivirus and anti-malware software. Avoid downloading files or clicking on suspicious links.
• Benefits: Protecting your device from malware prevents unauthorized access to your Binance account and keeps your financial information safe.

3. Watch out for phishing scams

Phishing scams are a common tactic cybercriminals use to trick individuals into revealing sensitive information. Being vigilant and recognizing these scams is essential to maintaining the security of your Binance account.

• How to implement: Avoid unsolicited emails or messages requesting personal information. Always double-check website URLs and ensure you're on the official Binance site. Don't share sensitive details with unknown contacts.
• Benefits: Avoiding phishing scams safeguards your login credentials and financial data from fraudulent attempts.

4. Use a password manager and strong passwords

The strength of your passwords is a critical factor in your account's security. Using a password manager and creating robust, unique passwords is an effective way to fortify your Binance account against unauthorized access.

• How to implement: Use a reputable password manager to generate and store complex, unique passwords for your Binance account. Ensure your password is lengthy, combining upper- and lower-case letters, numbers, and special characters.
• Benefits: Strong passwords and a password manager make it extremely difficult for attackers to crack your account, reducing the risk of unauthorized access.

5. Use two-factor authentication

To strengthen the security of your crypto trading account, use two-factor authentication (2FA). This adds a layer of defense to your Binance account. Protecting your assets and personal information from potential threats is a practical measure.

• How to implement: Binance supports two-factor authentication (2FA), which you can enable in your account. This typically involves linking a mobile app such as Google Authenticator or receiving one-time codes via SMS.
• Benefits: 2FA adds an extra layer of security because it requires a second verification step beyond your password, which prevents unauthorized access to your account.

6. Set up your withdrawal whitelist

Establishing a withdrawal whitelist is an essential security step that ensures your funds can only be withdrawn from trusted destinations. This feature is your shield against unauthorized withdrawals from your Binance account.

• How to Implement: Define a list of trusted withdrawal addresses in your Binance account settings. Only allow withdrawals from these pre-approved addresses.
• Benefits: A withdrawal whitelist enhances the security of your funds by ensuring that they can only be withdrawn from trusted destinations.

7. Store your crypto in your private wallet

Storing your cryptocurrencies in a private crypto wallet rather than on an exchange is a proactive approach to enhancing the security of your assets. It provides you with control and protection, reducing exposure to exchange-related risks.

• How to Implement: Consider using a secure hardware wallet, cold wallet, or a reputable software wallet to store your cryptocurrencies rather than leaving them on the exchange.
• Benefits: Storing your crypto in a private wallet protects against exchange-related risks (like hacks or outages) and gives you complete control over your assets.

Binance security FAQ

Bottom line: Is it safe to use Binance?

Binance is generally considered one of the safest cryptocurrency exchanges available. It has implemented extensive security measures, including two-factor authentication (2FA) and offline storage facilities.

That said, Binance has had a few security breaches in the past. This shows that no platform is perfect, and Binance users should always exercise caution when dealing with financial transactions online. The collapse of other major crypto exchanges, such as FTX in November 2022, highlights the uncertain nature of the crypto ecosystem.