Is Binance A Trusted & Secure Exchange In 2025? An Expert Analysis Of Security Features & Risks
Binance stands as the leading global cryptocurrency exchange, renowned for its unrivalled security measures, extensive range of altcoins, and a highly efficient trading engine. Serving as a comprehensive platform, Binance caters to the diverse needs of crypto enthusiasts, providing a vast selection of crypto products all in one place. There's a reason Binance is hailed as the King of Crypto Exchanges. 👑
Yes, Binance remains a trusted cryptocurrency exchange in 2025. Despite navigating intense regulatory scrutiny and an increasingly complex global landscape, Binance has consistently demonstrated its ability to adapt, evolve, and protect its users. Through periods of market turbulence and heightened oversight, the exchange has maintained seamless operations, safeguarded customer assets, and reinforced its commitment to transparency and compliance.
Trust has become a defining pillar for everyone in the crypto industry. While decentralization remains a critical goal for many, the reality is that millions still rely on exchanges like Binance for trading, investing, and custody solutions. This places enormous importance on security protocols, operational integrity, and regulatory alignment.
This article is for those who value security, accountability, and sustainability in a fast-moving market. Whether you're a veteran trader managing sophisticated strategies or a newcomer seeking a safe entry point, understanding how Binance approaches platform security, compliance, and user protection is essential.
We’ll dive into Binance’s technical backbone that secures billions in digital assets, from multi-tier cold wallet systems and industry-leading SAFU reserves to rigorous KYC processes and real-time surveillance tools.
The key features of Binance's security measures are:
- SAFU (Secure Asset Funds) to reimburse users in the event of losses from a security breach.
- Two-Factor authentication 2FA
- Organizational Security
- Proof of reserves (PoR)
- Real-Time Monitoring
- Security Notifications
- Data Encryption
- Secure Storage
- IP Address Whitelisting
- Withdrawal Address Whitelisting
- API Whitelisting
- Anti-Phishing Email Codes
Note: Users located in the US and UK are not supported.
What is Binance?
Binance has earned its place as the world’s largest cryptocurrency exchange, commanding massive trading volumes and building an ecosystem that touches nearly every corner of the crypto world.
Launched in 2017 by Changpeng Zhao (CZ) and Yi He, Binance initially set out with a simple goal: to make crypto trading accessible to everyone. Over the years, it has transformed into a full-scale platform offering a suite of tools for both newcomers and professional investors alike.
Today, Binance’s offerings are unmatched. With more than 450 cryptocurrencies and over 1,000 trading pairs, it provides one of the broadest selections of assets available anywhere. Competitive trading fees, support for 65+ fiat currencies, and a smooth user experience across web, mobile, desktop, and API integrations make Binance a preferred choice for millions of users around the globe.
But Binance is more than just a trading platform. Users can access advanced services like Binance Futures, offering up to 125x leverage, or grow their portfolios through Binance Staking. Those interested in the next wave of digital assets can explore the Binance NFT Marketplace or get early exposure to new projects through Binance Launchpad.
The scale is staggering: with over 200 million registered users and daily volumes that regularly exceed $20 billion, Binance continues to dominate the crypto exchange landscape — and its momentum doesn’t appear to be slowing down.
If you want a deeper dive into everything Binance has to offer — from its standout features to how it became a global crypto powerhouse — be sure to check out our full Binance review.
We also have in-depth articles and guides covering various aspects of Binance that you may find interesting:
- How to Sign Up on Binance: A Step-by-Step Guide
- Binance App Review: Mobile Trading on the Go
- BNB Coin: The Utility Coin for Binance
- Binance NFT Marketplace Review
- How to Buy Bitcoin on Binance
- A Guide to Trading on Binance
- Binance Earn Review
- Binance Launchpad & Launchpool
Detailed Analysis of Binance's Security Measures
Not every crypto exchange takes care of account security as well as Binance. If you're new to the crypto market, you may wonder what would happen if the platform got hacked or some other catastrophic event caused the loss of your digital assets. Don't worry. In this section, you will learn the security measures Binance takes to protect your account.
Binance Key Security Features
Binance has several security features that contribute to protecting assets held on the platform by registered users.
Safeguarding Your Funds: The Secure Asset Fund for Users (SAFU)
In 2018, the Binance platform introduced a type of insurance fund referred to as the Secure Asset Fund for Users, or “SAFU” for short. The SAFU acts as an emergency reserve to protect user assets on the Binance platform. In the unlikely event that the platform gets hacked or anything causes users to lose digital assets (From Binance's perspective), the SAFU reimburses users.
The SAFU doesn't cover trading losses or any self-generated losses. For instance, it's your mistake if you lose your crypto wallet keys, mishandle your password, or cannot access your Binance account because you made a mistake. However, if a hacker gets your data or assets from a vulnerability in Binance's security systems, that is the responsibility of the platform to compensate your losses.
"Binance stores 10% of all trading fees in a secure asset fund to protect a share of user funds." (Source: Binance).
Two Factor Authentication
2FA isn't mandatory with Binance, but we highly recommend it as a security protocol. If someone accesses your password and you don't have 2FA enabled, you might only realize there was unauthorized access to your account when you log in and find your account balance is zero.
2FA acts as a stop measure, meaning that even if a hacker gets your password, they cannot access your account or make a withdrawal without also having access to your mobile device, which is also likely password-protected.
Organizational Security
Binance has several infrastructure features to ensure the integrity and safety of your funds (for the wallet and on the platform), including TSS (threshold signature schemes), a cryptographic protocol for distributed key signing and distribution, and multisig (multiple signatures).
Proof of Reserves (PoR)
"Binance has funds that cover all of our users assets 1:1, as well as some reserves." (Source: Binance).
In February 2023, Binance became the first centralised crypto exchange (CEX) to implement zk-SNARKS, which are zero-knowledge protocols to increase the security and privacy of user data during verification.
In addition, Binance made the code open-source to further benefit the entire crypto industry's security.
Real-Time Monitoring
Binance's risk management system analyses every 2FA or password reset, withdrawal attempt, and email address change. If it considers anything unusual happening, Binance suspends withdrawals for 24-48 hours or longer, depending on your responses.
Binance employs sophisticated round-the-clock monitoring systems to ensure that there is no unusual activity on the platform.
Security Notifications
You can help Binance protect your account by adjusting your settings to maximum security. The notifications could help prevent losses on your account from theft.
"Secure From Day One: We safeguard user funds by securing our platform with strict protocols and industry-leading technical measures." (Source: Binance)
Data Encryption
Binance uses end-to-end encryption for all transactions and encrypts your personal information and data in storage.
Secure Storage
Binance stores most client funds and assets in offline, cold storage facilities.
Considering an average day for Binance generates $38 billion in trading volume, the platform must operate dynamically with hot and cold wallets to provide real-time liquidity and, at the same time, mitigate potential security risks. It's a complex procedure to track real-time assets through its internal ledger, but every transaction is verifiable via the Binance PoR system (proof-of-reserves).
"User assets are tracked entirely separately from Binance's corporate holdings." (Source: Binance)
Moving funds between Binance wallets serves various purposes. It has to navigate transactions of all sizes, whether a significant withdrawal by a "whale" or an institution, which could cause chaos in liquidity if Binance fails to handle the transaction promptly and correctly.
The objective is to maintain liquidity and security by ensuring sufficient funds remain for platform trading liquidity, and the remaining funds are transferred to cold (offline) storage.
The chart below gives a step-by-step visual insight into how Binance moves user assets on the platform.
Periodically, Binance consolidates by transferring funds from deposit wallets into "omnibus hot wallets." This process helps Binance meet user withdrawal requests and minimise costs and wait times.
"Excess funds are moved from hot wallets to safe storage in cold or offline wallets. We refer to this process as overflow. Once a hot wallet runs low on funds, it might need a top-up from a cold wallet." (Source: Binance)
So, we've established that Binance takes significant measures to safeguard the platform, but let's discover what you can do to help take care of your digital assets.
How to Secure Your Cryptocurrency Exchange Account on Binance
Binance is excellent at providing a range of security options, but it helps if you also take measures to protect your account.
When you open a Binance account, you can restrict addresses to prevent devices from accessing your account. We recommend setting up personalised access control from the start. Whitelisting wallets and IP addresses help to protect your account.
Binance encourages safe sign-in protocols, such as 2FA, including SMS, email, hardware, and app-based. Due to what is known as a Sim-Swap attack, most security professionals do not recommend using SMS, but opt for the more secure 2FA, such as Google Authenticator or Authy, on your mobile device or using a dedicated 2FA device like YubiKey.
It's advisable to use a super strong password along with a password manager. Use lower and upper case, digit,s and special characters. If you cannot remember your password without writing it down, that's a positive sign you have nailed a strong password, hence where a password manager can save the day.
Avoid using a generic password like Brian1234 or one you regularly use for other accounts.
By enabling notifications in your security settings, you can opt in to receive security notifications from the Binance support team for login attempts. This can help identify if someone tries to get into your account pretending to be you.
Adding multiple layers to your account security is always a good plan.
"Binance maintains completely separate ledgers for user funds, pegged assets, and its own holdings. At any given moment, we know exactly how much money each of our users is entitled to, and we hold sufficient funds to honor any withdrawal request. And, again, it's all verifiable via the PoR system." (Source: Binance)
Binance Wallet Security
You can choose Binance's Trust Wallet, a popular self-custody wallet with over 60 million users, or use the Binance Wallet Chrome extension if you want to stick with Binance-approved self-custody wallet solutions.
As with other exchanges, Binance users have two choices: They can either keep their funds on the Binance Exchange or withdraw their assets to a self-custodial wallet. Most security-minded crypto users would highly recommend withdrawing any funds from an exchange that you don't intend to trade on. You can find out why, along with other crypto safety best practices, in our Crypto Safety Guidelines article.
Trust Wallet is a fantastic choice for mobile crypto wallets, but if you want the most secure crypto storage wallets available, you may want to check out our article on the Top Hardware Wallets.
Regardless of the wallet you choose, always choose a strong password combining letters, capital and lowercase, digits, and special characters. If you can opt in for biometric access, all the better, as nobody has your face or fingerprints.
When setting up your wallet, write the seed phrase somewhere safe and secure. Without this recovery phase, you could permanently lose access to your wallet. (We cover this in detail in the Crypto Safety Guidelines article above)
2FA might seem a pain when you want to access your wallet fast, but it's extra security for stopping others from fast access to your crypto holdings.
Binance Mobile App Security
The same rules apply to the Binance mobile app as to a crypto wallet. We've all become blasé about using our phones in public and trusting security, but our relaxed approach to trading or buying crypto on mobile apps can be dangerous.
After you download the Binance mobile app, consider the following 8 security tips: -
- Install reputable antivirus protection that offers passcode app locking.
- Update your phone regularly.
- Install a 2FA authenticator such as Google Authenticator or Authy.
- Lock the Binance app if possible.
- Have a lock screen password on your phone, so nobody can access the apps, even if you lose your mobile.
- Consider installing a VPN for added encrypted security.
- Ideally, don't use the Binance mobile app using public WiFi.
It might seem a hassle to consider implementing extra security, but protecting your crypto assets is a priority if you want to stay in the crypto market for the long term.
So, Is Binance Safe?
The definition of safe can be subject to individual perspectives. Our objective was to determine if depositing funds with Binance is secure, using the trading platform safely and withdrawing cryptos to your wallet.
In addition, we looked at the security of the Binance mobile wallet and app.
Whilst we always encourage you to adopt a responsible approach to securing your digital assets, Binance provides a good selection of tools to help you do so. The peace of mind from knowing Binance has a SAFU in place is a big bonus.
In November 2022, as the crypto market plunged, Changpeng Zhao (CZ) topped up the Binance SAFU to $1 billion to provide additional security to Binance users during the challenging bear market. In his tweet, Changpeng stated that BNB and BUSD accounted for $700 million and $300 million for the BTC address.
In recent years, regulators worldwide have accused Binance of compliance issues and not responding to requests to provide essential information. It's tricky to get a clear picture as most of it has been mere hearsay, and many in the crypto community feel it is nothing more than a witch hunt amidst the ongoing Chokepoint 2.0, but it is important to note that these accusations against Binance do exist. However, as Binance has over 150 million users worldwide and is by far, the largest crypto exchange in the world, they're clearly doing a lot right by their customers.
Trust Wallet and the Binance Wallet Chrome extension are popular self-custody wallets downloaded by millions of users. If you follow the guidelines for protecting your digital assets, either wallet is acceptable. The Binance app is also popular with traders and investors on the go.
We hope that you now have a better understanding of the safety and security of Binance. Please read our in-depth Binance review if you would like to know more about the largest exchange worldwide.
Alternatives to Binance
Binance is a major player in the exchange space and a great consideration for anyone looking to trade crypto. However, some great alternatives are also worth checking out.
Bybit is one of the leading exchanges for serious traders with a second-to-none trading and matching engine which has helped attract some of the most professional traders in the industry. Bybit is also our top pick for anyone looking to get into copy-trading or participate in trading competitions. You can learn more in our Bybit Review.
OKX is another fantastic exchange, at the cutting edge of Web3 integration and innovation with their OKX web wallet, the OKX Chain, NFT marketplace and more. OKX has also attracted highly skilled traders from all over the world and has plenty to offer crypto traders. You can learn more in our OKX Review.
If you are looking for the most simple way to swap cryptocurrencies, then check out SwissBorg. SwissBorg is a leading European exchange and our #1 pick for beginners. Being fully licensed and regulated, SwissBorg offers “one-click” trading and investment products, great for hodlers who need access to simple swaps and ways to earn APY. Note that SwissBorg is not suitable for technical analysis traders as there is no charting functionality. Check out our SwissBorg Review to learn more.
Frequently Asked Questions
We believe so, Binance is one of the most secure platforms in crypto. Binance made an excellent decision in 2018 by incorporating the SAFU, which increased user confidence in the exchange.
Hundreds of cryptocurrency exchanges are available, and we understand the most critical element of deciding which one to use depends on whether it is a trusted platform.
As well as the back-end security support, Binance also helps you to secure your account by adjusting your settings to include multiple layers for access.
The Binance app lets you buy, sell, stake, and trade cryptocurrencies from a mobile device. After verifying your account, you can use the app to deposit funds, trade and transfer cryptos, or even pay for goods and services with your digital assets.
To download the app for Binance, you can visit the Apple or Google store or scan the QR code on the Binance website.
It's advisable to store your crypto in a self-custody crypto wallet rather than storing them on a centralised exchange. You can choose an online desktop wallet, mobile wallet, or an offline cold storage hardware wallet. Binance has a Chrome extension wallet or Trust Wallet.
Yes, Binance is the #1 exchange in the world in terms of trading volume. Binance has good liquidity for trading, industry-leading low fees, many crypto-centric products, and a wide variety of crypto assets, products, and trading features.
Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.
Binance encrypts data end-to-end, monitors user activity and suspends withdrawals if it suspects fraudulent or suspicious activity. The platform has a strict KYC/AML policy and takes exceptional measures to protect against malicious attacks.
Binance US requires new users to provide an SSN for regulatory reasons and to help prevent fraudulent activity. Binance assures users that it does not store their social security number details, though some users are uncomfortable sharing them. All communication with the Binance platform is SSL encrypted.
Binance is the world's leading cryptocurrency exchange by volume and registered user numbers, and Coinbase exchange is the second. Both established platforms prioritise account security with 2FA, cold storage and encryption.
Coinbase has crime insurance to protect against potential theft from a cybersecurity breach. On an undated Coinbase help page, the platform disclosed that "Our custodial accounts have been established in a manner to make pass-through FDIC insurance available up to the per-depositor coverage limit then in place (currently $250,000 per individual)."
Coinbase is typically a starting point for crypto beginners because the interface is user-friendly and easy to navigate.
To help you decide on the best platform, read the in-depth Binance vs. Coinbase comparison review.
US citizens cannot use Binance. Instead, they can use the US-specific Binance US website for trading, buying and selling cryptocurrencies.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
