Binance is the biggest crypto exchange in the world in terms of trade volume, with a daily trade volume valued in the billions. Among the key drivers of its growth over the years have been its reliable security and extensive product portfolio. Binance supports the trade of over 300 altcoins and has over 1,000 crypto trading pairs, along with numerous additional tools, such as Auto-Investment, an NFT generator, and extensive support for crypto-staking.

The Binance Product Portfolio

Founded in 2017 by Chinese-Canadian businessman Changpeng Zhao, Binance offers numerous crypto-centric services. The following is an outline of Binance's legacy products.

Trading Platforms

Binance currently runs three main trading platforms. They are Binance.com (the main service for international clients), Binance US (for U.S. users), and Binance DEX. While Binance.com and Binance US hold assets on behalf of clients and strictly follow regulatory statutes, Binance DEX is designed differently.

binance spot account screen with balance

The DEX platform is a decentralized exchange that allows users to trade independently and directly with other traders. For a long period, Binance had no Know Your Customer (KYC) or Anti Money Laundering (AML) processes, the primary tools for tracking crypto transactions and users. However, in 2021, Binance announced it was introducing KYC and AML to the platform to comply with regulations in numerous countries.

While Binance US primarily caters to U.S. clients, Binance.com and Binance DEX are closed to American citizens. That said, the three sites collectively prohibit users from 28 nations from accessing Binance services due to trade restrictions. The Binance list of blocked countries currently includes Albania, the Democratic People's Republic of Korea, Cuba, Iran, Iraq, Somalia, Sudan, Syria, Venezuela, and Zimbabwe.

Binance Coin

Binance Coin (BNB) is Binance's native cryptocurrency and is underpinned by the Binance Chain blockchain system. BNB is used in the Binance ecosystem as an investment coin. It is also popularly used by Binance clients to pay trading fees on its platforms due to its discounted rates which help to increase its use cases.

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

The Binance Smart Chain

The Binance Smart Chain (BSC) is an auxiliary blockchain system that runs parallel to the Binance Chain and supports the decentralized applications (dApp) ecosystem. It allows the creation of smart contracts on the blockchain and supports staking projects.

Launched in April 2020, it has gained significant popularity within the decentralized finance (DeFi) community due to its scaling capacity, low fees, and cross-chain compatibility. DeFi projects are blockchain-based peer-to-peer financial services that allow users to lend, borrow, and invest money. They typically have no centralized control and are viewed by crypto enthusiasts as a means to effectively bypass traditional banking institutions.

Notable DeFi projects that rely on the BSC system include Harvest Finance, Value DeFi, and PancakeSwap. BSC also hosts NFT projects such as the BakerySwap marketplace and the Battle Pets gaming NFT.

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

It is important to note that all cryptocurrency platforms, like all other online resources, are susceptible to attacks, whether directly or indirectly. Of course, some platforms are more susceptible than others.

When it comes to Binance, its platforms have scored highly in cybersecurity ratings. According to a 2019 report by the Xiamen SlowMist Technology security firm, Binance has extensive security measures that exceed many in the crypto world. Its current rating by the firm is "Excellent." The structures analyzed by the firm include server security, wallet, private key security, and software integrity.

Binance Secure Asset Fund for Users

To bolster user safety, in 2018, Binance launched an emergency fund designed to protect users from market issues, emergencies, and other unforeseen crypto problems. The Secure Asset Fund for Users (SAFU) totals around $1 billion, and comprises BNB, BTC, USDT, and TUSD.

2023 SEC Allegations Against Binance

In June 2023, the U.S. Securities and Exchange Commission (SEC) filed charges against Binance. The allegations include operating unregistered exchanges, clearing agencies, unauthorized broker deals, and misrepresenting trading controls and oversight on the Binance.US platform. If found true, it could place Binance and its users in great jeopardy.

However, contrary to the market reaction during previous SEC investigations of other crypto firms—where money outpours from the exchange and causes price volatility—Binance is still going strong. Its users appear unphased by the allegations, and despite a shock to the crypto market, prices didn't spiral, as seen when the FTX exchange filed for bankruptcy.

Still, given the allegations and potential issues facing Binance, it would be best not to keep any funds on Binance until the legal battle is resolved.

How to Secure Your Binance Account

binance security settings and options

To ensure that your funds on Binance are safe, it is best to follow standard security protocols. The following is an outline of some top measures.

1. Create a Strong Password

Creating a strong password is the first step in securing your Binance account. Typically, a strong password consists of a mix of lowercase and uppercase letters, symbols, and numbers, and should be at least 12 characters, if not 16. It's difficult to remember a password of that length, so we suggest using a safe password manager to help secure your account.

It is important not to reuse passwords used on other platforms. This is because a breach on a different network could lead to the credentials being intercepted and used by hackers to unlock accounts on financial platforms such as Binance.

Easy-to-guess passwords should also be avoided. This is because they are easily deciphered using brute-force password-cracking tools.

2. Use Two-Factor Authentication (2FA)

Image of Binance 2FA option symbols.

Binance allows users to enhance account security through the use of two-factor authentication. Clients have a choice of four authentication modes: SMS, Google Authenticator, Binance Authenticator, and Yubikey.

Two-factor authentication via SMS allows users to verify their account credentials via an SMS code sent to their phone number. When it comes to Google Authenticator and Binance Authenticator, a barcode scan is needed to establish an initial connection between the Binance account and the app. Once this is done, the app will generate a random unlock code each time the user wants to log in.

Securing the account using Google Authenticator or Binance Authenticator is safer than SMS verification. This is because SMS authentication can be bypassed through a SIM-swapping attack. The security feature is also vulnerable to SS7 network interception techniques.

Besides SMS, Google Authenticator, and Binance Authenticator, Binance clients also have the option of securing their accounts using YubiKey. All a user has to do is connect and verify their Yubikey on the platform.

After this, the key can be plugged into a USB port to validate the account each time the owner wants to log in. The hardware-based authenticator primarily relies on Near-Field Communication (NFC) cryptographic technology to validate accounts.

3. Limit Binance Withdrawal Addresses

Binance provides users with the option only to withdraw their assets through specific accounts. The feature, referred to as Address Management, uses a whitelist to allow withdrawals. Each address added requires an email confirmation. For this reason, it is also best to ensure email security by enabling two-factor authentication on the linked email address.

Enabling this safeguard prevents arbitrary withdrawals to accounts controlled by hackers.

Never Keep Your Funds on an Exchange

Binance has long been considered one of the safest cryptocurrency exchanges. It offers extensive security options and gives users control over their funds. While Binance has experienced security issues, so have all major cryptocurrency exchanges. However, Binance has weathered those storms to become the world's largest crypto exchange.

Still, even with those security credentials, you should only keep the crypto you're trading on an exchange. Keeping a huge amount of crypto stored on an exchange can lead to other issues, so shifting your crypto into a secure wallet is always preferred.