How Trustworthy Is Binance Exchange?

magneto

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Quote from: Prateek_sharma on October 14, 2019, 07:59:22 AM

Hey there... Over the last few months, crypto exchanges have been hacked, as I was researching for the best trading exchange i come across the binance exchange. On the other hand, I have seen that a lot of people are using the binance exchange.

More importantly, I wanted to know how secure is binance exchange?

Trust =/= security.

Binance is very trusted, and they are known to provide quite good customer service and have a strong presence on social media. These are all why they are so popular.

However, just because they can be trusted doesn't mean that security is necessarily a guarantee. We don't know exactly how they handle their cold storage (although I'd assume that they probably do a better job than some of the rest, since they haven't had any major hacks or security issues over the past few years of existence), nor how well they will uphold their standards in the future.

jrrsparkles

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Quote from: Prateek_sharma on October 14, 2019, 07:59:22 AM

Hey there... Over the last few months, crypto exchanges have been hacked, as I was researching for the best trading exchange i come across the binance exchange. On the other hand, I have seen that a lot of people are using the binance exchange.

More importantly, I wanted to know how secure is binance exchange?

Binance also faced hack but they have been able to repay the hacked amount to users but it may or may not happen next time if the exchange hacked depends on the hacked amount so any centralized exchange is prone to be hacked so go with DEX or P2P sites but never ever store any funds into the exchanges,just move them to your wallets once the trade completed.

carlfebz2

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Quote from: figmentofmyass on October 14, 2019, 05:18:08 PM

Quote from: carlfebz2 on October 14, 2019, 08:25:27 AM

https://www.coindesk.com/binance-kyc-issue?amp
https://techcrunch.com/2019/05/07/binance-breach/amp/

Major issues with Binance so its not 100% safe but its still being used by majority. So if you can took up the risk then go ahead but always put up on your mind on dont store up your coins for too long on any exchangers.

while it doesn't absolve their responsibility, binance claims they weren't actually hacked for those KYC documents. the compromised documents supposedly came from a 3rd party KYC vendor.

the fact is that binance probably has the single largest target on its back of all exchanges, based on its popularity, hot wallet activity, and allowance of unverified accounts. fortunately, they are also extremely profitable and they are prudent about cold storage, which is why they were easily able to cover the may hack where other exchanges would have collapsed.

it's a fine exchange to use. the important thing with centralized exchanges is to minimize the amount of time you have funds exposed to them. just deposit, trade, and withdraw---don't use them to store funds.

Sustaining is one of the things which amazes me where they fully compensated on whats lost and receive no complaints since all been given and this what differs them with other exchange.

Its always been told all over again and repeated for how many times that dont hold funds too long on exchangers but people seems doesnt care.

Prateek_sharma

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Quote from: carlfebz2 on October 14, 2019, 08:25:27 AM

Quote from: Prateek_sharma on October 14, 2019, 07:59:22 AM

Hey there... Over the last few months, crypto exchanges have been hacked, as I was researching for the best trading exchange i come across the binance exchange. On the other hand, I have seen that a lot of people are using the binance exchange.

More importantly, I wanted to know how secure is binance exchange?

https://www.coindesk.com/binance-kyc-issue?amp
https://techcrunch.com/2019/05/07/binance-breach/amp/

Major issues with Binance so its not 100% safe but its still being used by majority. So if you can took up the risk then go ahead but always put up on your mind on dont store up your coins for too long on any exchangers.

Hey, in one of the news article i have read that Cz claimed that Funds are safu

Coin_trader

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Quote from: pooya87 on October 14, 2019, 11:29:32 PM

Quote from: figmentofmyass on October 14, 2019, 05:18:08 PM

it's a fine exchange to use. the important thing with centralized exchanges is to minimize the amount of time you have funds exposed to them. just deposit, trade, and withdraw---don't use them to store funds.

that is a good suggestion but it is never practical as traders don't really go in and out of the market entirely. they go in and out of coins. so they will end up having their coins on exchanges specially since if they wanted to keep withdrawing their coins and re-depositing it every day the fees would amass to a big amount.

P.S. if someone ever thought an exchange that is big like Binance is safe or "trustworthy" they should recite the name of all the previously gigantic exchanges that scammed their users: Mt Gox, Cryptsy, Bittrex are my top 3.

Sir, But CZ said "Funds is Safu" why not trust them? Shocked

----

Seriously speaking Binance is dodging regulations by moving headquarters so many times and I believe this is not the right thing to do for a famous exchange. Additionally, CZ is showing some epic fail tweets recently about alipay.

o_e_l_e_o

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Quote from: pooya87 on October 14, 2019, 11:29:32 PM

that is a good suggestion but it is never practical as traders don't really go in and out of the market entirely.

If you are day trading, then you pretty much have to accept the risk of leaving your coins on exchanges for long periods of time, either tied up in a position or waiting in your wallet for the right buy/sell price. Decentralized exchanges and peer-to-peer trades just don't have either the volume or the speed necessary yet to facilitate trading. If you want to day trade, then keeping your coins on an exchange is risk you have to take.

Conversely, if you are swing trading or buying to hold for the longer term or to spend on other goods or services over the coming days or weeks, then there is no need to trust a centralized exchange at all. There are plenty of other options out there.

Quote from: figmentofmyass on October 14, 2019, 05:18:08 PM

the important thing with centralized exchanges is to minimize the amount of time you have funds exposed to them. just deposit, trade, and withdraw---don't use them to store funds.

Storing funds isn't even the thing that worries me the most about using centralized exchanges, although the amount of funds stolen/frozen/hacked/locked/otherwise lost from these exchanges is huge. It's the invasion of privacy. KYC requirements are becoming ridiculous. We know exchanges engage in address analysis and track where your coins have come from and where they go. We know exchanges hand over data freely to relevant governments and sell your data to third parties. I avoid them at all costs.

figmentofmyass

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Quote from: pooya87 on October 14, 2019, 11:29:32 PM

Quote from: figmentofmyass on October 14, 2019, 05:18:08 PM

it's a fine exchange to use. the important thing with centralized exchanges is to minimize the amount of time you have funds exposed to them. just deposit, trade, and withdraw---don't use them to store funds.

that is a good suggestion but it is never practical as traders don't really go in and out of the market entirely. they go in and out of coins. so they will end up having their coins on exchanges specially since if they wanted to keep withdrawing their coins and re-depositing it every day the fees would amass to a big amount.

it depends what kind of trader you are. typical swing traders stay in either fiat or BTC for weeks at a time. there's no reason to keep BTC sitting on an exchange for that long if you're not selling. the third party risk is not worth trying to avoid a 0.0005 BTC withdrawal fee here and there.

pooya87

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Quote from: figmentofmyass on October 14, 2019, 05:18:08 PM

it's a fine exchange to use. the important thing with centralized exchanges is to minimize the amount of time you have funds exposed to them. just deposit, trade, and withdraw---don't use them to store funds.

that is a good suggestion but it is never practical as traders don't really go in and out of the market entirely. they go in and out of coins. so they will end up having their coins on exchanges specially since if they wanted to keep withdrawing their coins and re-depositing it every day the fees would amass to a big amount.

P.S. if someone ever thought an exchange that is big like Binance is safe or "trustworthy" they should recite the name of all the previously gigantic exchanges that scammed their users: Mt Gox, Cryptsy, Bittrex are my top 3.

gentlemand

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I doubt they'll ever directly thieve. A monster hack is the most likely risk. We know nothing about their security practices, sensible I guess, and they seem to run fast and loose with regulation. Best to treat it like a hot potato like everywhere else.

figmentofmyass

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Quote from: carlfebz2 on October 14, 2019, 08:25:27 AM

https://www.coindesk.com/binance-kyc-issue?amp
https://techcrunch.com/2019/05/07/binance-breach/amp/

Major issues with Binance so its not 100% safe but its still being used by majority. So if you can took up the risk then go ahead but always put up on your mind on dont store up your coins for too long on any exchangers.

while it doesn't absolve their responsibility, binance claims they weren't actually hacked for those KYC documents. the compromised documents supposedly came from a 3rd party KYC vendor.

the fact is that binance probably has the single largest target on its back of all exchanges, based on its popularity, hot wallet activity, and allowance of unverified accounts. fortunately, they are also extremely profitable and they are prudent about cold storage, which is why they were easily able to cover the may hack where other exchanges would have collapsed.

it's a fine exchange to use. the important thing with centralized exchanges is to minimize the amount of time you have funds exposed to them. just deposit, trade, and withdraw---don't use them to store funds.

milewilda

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Oh link is directed to https://coinpedia.org/exchange/binance-exchange/.I haven't read up the review though.Going back to topic,
where there's no exchange is safe or fully trustworthy and since we do talk about Binance they had past issues on kyc leaks and 7k btc hack but all of these things been handled by them and able to hold up for their reputation without going down to the bottom which is really a rare thing for most exchangers that do experience hack where usually they end up dying or lost up popularity but Binance do able to withstand such issue and still continue to fly with colors.Do I still trust them? Yes but not totally, always take precautionary measures.

Shasha80

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Every exchange is not 100% safe, let's talk about Binance, is it safe and trustworthy? like I already said there is no one exchange 100% safe, but Binance has a very good reputation. Besides it is now the best exchanges in the world and the most widely used exhanges. Binance has bad history, some time ago Binace was hacked. But the amazing thing is that Binance can rise from it the big incident and covered all the losses. In conclusion, in my opinion, Binance can be trusted so far, then my advice is never to put all your money in one exchange and never to put too long your money in exchanges. Use exchanges only as a place to trade, not as a place to saving.

TinaK

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There is only one problem I felt which is really worst other than that everything is smooth.
I have met with an issue in one BNB transaction and I was tried to reach the customer care but I felt they are having poor customer service than my near by local courier company.
I believe they will improve it soon but if you keep like this in future somebody may overtake them.

ChrisPop

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They have survived a major hack and successfully reimbursed the loss using their insurance fund. I'd say that their track record is pretty good and gives me confidence in them, but I wouldn't EVER keep any valuable cryptocurrency on an exchange. It is a risk that you take it for free. I recommend only using exchange services in the moment you need it and get your money out of it as soon as possible. If you are a professional trader then I'd recommend using only regulated brokers just to be on the safe side.

Bttzed03

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Quote from: The Sceptical Chymist on October 14, 2019, 11:16:42 AM

Quote from: Bttzed03 on October 14, 2019, 08:53:30 AM

Anyone reading post from this user should be aware that he/she is not really up for a serious discussion.

Interesting. It's not a bad topic for discussion, but your statement makes me wonder what his motivation is in starting up this thread if he's a shill as you say.

Other than all topics he creates has coinpedia links, I completely lost interest having a discussion with this user when he attempted to shill an exchange using another coinpedia article (refer to this post https://bitcointalksearch.org/topic/is-1xbit-scam-5179175).

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Quote from: o_e_l_e_o on October 14, 2019, 11:09:26 AM

"Hey, we let all your data be stolen, but don't worry, we won't charge you quite as much as usual next time you spend money with us". What a joke.

Yeah, that's basically what Target did when they got hacked. I think they handed out gift certificates of some such nonsense once they got exposed--and what a nightmare it was for them.

I still think Binance survived that 7000BTC hack pretty well, even if they might not have done completely right by their customers. When identity dox get stolen from any corporation, people are generally compensated in the form of a lawsuit if those customers file one. Binance's users could have done that, but I don't think it happened--and I'm not surprised, because most of the traders on there are probably anonymityphiles.

Quote from: Bttzed03 on October 14, 2019, 08:53:30 AM

Anyone reading post from this user should be aware that he/she is not really up for a serious discussion.

Interesting. It's not a bad topic for discussion, but your statement makes me wonder what his motivation is in starting up this thread if he's a shill as you say.

o_e_l_e_o

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Quote from: electronicash on October 14, 2019, 08:40:20 AM

but we all know they are owned by someone who can go nuts any moment.

Except many aren't. BISQ for example is what is known as a DAO - a decentralized autonomous organization. So not only is the trading decentralized, but the governance of BISQ itself is decentralized. There is no "owner who can go nuts", as you put it. You can read more about it here: https://docs.bisq.network/user-dao-intro.html.

Quote from: electronicash on October 14, 2019, 08:40:20 AM

they were once hacked but they cover funds lost which made them look like trusthworthy.

They were also hacked for thousands of users' KYC documents, and did very little to either reassure or compensated them for the hack. They provided each user with a VIP membership which provides them with discounted trading fees on Binance. To me, that's pouring salt in the wound. "Hey, we let all your data be stolen, but don't worry, we won't charge you quite as much as usual next time you spend money with us". What a joke.

Bttzed03

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Anyone reading post from this user should be aware that he/she is not really up for a serious discussion.

To you OP, I'm amazed that you are still acting like some normal user asking something about certain topics but in reality, you are just a shill account of that website coinpedia. You even went to the scam accusation board just to shill that.

electronicash

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they are all not safe even the dex aren't safe. dex may sound safe because someone says so but we all know they are owned by someone who can go nuts any moment. binance is just irresistible because of volume and most likely you invested to BNB if you trade there. they were once hacked but they cover funds lost which made them look like trusthworthy. until there is nothing yet will happen we will find it trusthworthy.

carlfebz2

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Quote from: Prateek_sharma on October 14, 2019, 07:59:22 AM

Hey there... Over the last few months, crypto exchanges have been hacked, as I was researching for the best trading exchange i come across the binance exchange. On the other hand, I have seen that a lot of people are using the binance exchange.

More importantly, I wanted to know how secure is binance exchange?

https://www.coindesk.com/binance-kyc-issue?amp
https://techcrunch.com/2019/05/07/binance-breach/amp/

Major issues with Binance so its not 100% safe but its still being used by majority. So if you can took up the risk then go ahead but always put up on your mind on dont store up your coins for too long on any exchangers.

Topic: How Trustworthy Is Binance Exchange? (Read 199 times)