Does Binance offer SAFU? Here are the reasons why you should not store cryptocurrencies on Binance.
With Cryptocurrencies becoming mainstream, many cryptocurrency exchanges are appearing in the market. However still, Binance has its place as one of the leading and safest exchanges. Since the functionality of an exchange is to buy, sell, and trade crypto assets, deciding whether to store assets in crypto exchanges can be pretty tricky. Though Binance offers its secured wallets to the users, is it appropriate to store the assets safely?
Though Binance seems to be a safer place to store crypto assets, it is not recommended to rely on the integrity of a single company. Things would go difficult in instances of hacks or theft. Furthermore, there is no guarantee that Binance is not a hotspot for hackers, being an exchange transacting in huge volumes.
Binance exchange ensures SAFU. What does SAFU mean in terms of crypto? SAFU stands for the Secured Asset For Users. Binance offers a policy to secure the user’s funds. Binance uses a percentage of trading fees as the insurance funds to secure crypto assets stored in it.
Should I store my assets in Binance?
What is more important than investing is keeping the investment safe. Keeping your crypto assets offline is one of the golden rules of investment. However, with advancements in technology, you cannot deny that hackers are also getting intelligent, capable of performing impossible digital thefts. If you make a rookie mistake of “my funds will be safe,” BOOM.
Author’s note: The main reason I insist on not storing cryptocurrencies online is that the coins/tokens you buy are IOUs until you withdraw them to your hardware wallets. So, there is no certainty about its security. And the next thing is, ‘Exchanges are Exchanges’, keep that in mind.
Withdraw the funds!
When you cryptocurrency exchanges, make sure you withdraw the coins after every transaction. You would never leave your money on remittance platforms or third-party payment gateways. So then, what makes you leave back coins on Binance? Instead of storing your assets in a third-party platform, better believe in yourself and have your private keys safe with you. Now, the coin is in your control.
It is okay to hold frequently traded coins, but if the coin is idle in your Binance wallet, withdraw them to your wallet as soon as possible.
What’s the best place to store crypto?
Although hardware wallets are not convenient, they have been considered the safest means of storing crypto assets. If you own coins worth a significant amount of money, hardware wallets are highly recommended. Hardware wallets are small devices (luckily, the wallets could fit in your pocket) that are designed to store cryptocurrencies without fearing getting hacked.
On using hardware wallets, the private keys never leave the device. So, you can make transactions even if your computer device is attacked by malware as long as you send the coins to the correct destination address.