Interest in centralized cryptocurrency exchanges is increasing in 2025, amid rising global adoption of digital assets. However, the expansion of the ecosystem also translates into higher risks associated with cryptocurrency wallets, with potential attacks from bad actors.
This is the main reason why managing this industry is a necessary step to promote a safe yet continuously evolving ecosystem. Centralized cryptocurrency exchanges represent regulated businesses, allowing the buying, selling, and trading of digital assets in a safe environment.
Binance is now the largest and most important cryptocurrency exchange in the world, with over 270 million registered users, reflecting increasing trust in this platform.
This exchange is present in over 100 countries, including the U.S., with the highest trading volume in the ecosystem and total assets of over $142 billion. But is Binance safe to use?
This Binance safety assessment aims to answer the question of whether Binance is safe to use in 2025 while addressing potential risks, past incidents, and the security measures that Binance has implemented to prevent unfortunate incidents.
Binance Safety Assessment – Overview of Binance's security infrastructure
Binance is one of the safest cryptocurrency exchanges in the world, and this claim is evidenced by the increasing number of users trusting this platform.
As the largest and most important centralized digital asset platform, Binance has implemented numerous complex safety and security measures to protect users.
Here are the key security factors that make Binance a safe platform for storing and trading cryptocurrencies.
1. SAFU Fund – Binance's main safety feature
Binance's SAFU stands for Secure Asset Fund for Users. This is the insurance fund established by the cryptocurrency exchange in July 2018 to enhance Binance's safety and prevent:
Security breach
Trick
Other unexpected events
The fund was established to emphasize Binance's commitment to user security and demonstrate a proactive approach to managing potential risks in the cryptocurrency industry.
Binance SAFU is valued at $1 billion, based on official reports from the exchange, and the exchange continuously monitors its scale to ensure it remains capable of providing the best protection for users.
The exchange allocates 10% of total transaction fees earned on the platform to SAFU.
Types of losses covered by SAFU
SAFU covers the following types of losses:
Losses that users may incur due to compromised Binance account credentials
Vulnerabilities/shortcomings in Binance's security system/protocol
Other types of losses that Binance decides qualify for recovery
Binance SAFU – Origin of the name
"Safety fund" is a phrase often used by Binance founder, Changpeng Zhao. He first tweeted this during an unplanned exchange maintenance to ensure that users know their funds are safe.
In 2018, a content creator named Bizonacci uploaded a YouTube video titled 'Funds Are Safu', and this phrase quickly became a meme, prompting the community to use this phrase ever since.
2. Proof of reserves enhances Binance's safety
Binance's security is also reflected in the exchange's transparency to users, helping to increase trust while publicly disclosing its reserves through the Proof of Reserves (PoR) system.
Binance's PoR specifically addresses the assets currently being held by users.
The official PoR of the exchange shows that users' assets are fully backed at least 1:1.
For example, according to the exchange's PoR, Binance's BTC ratio is nearly 101%, USDT ratio is over 104%, ETH ratio is over 100%, while BNB ratio is over 111%.
3. Binance security: Wallet, Compliance system, Risk team
The assessment of Binance's safety shows that this cryptocurrency exchange stores users' assets in cold wallets to enhance security and provides detailed data on internal risk groups, compliance systems, and incident response protocols.
Hot wallet vs. Cold wallet
Hot wallets are cryptocurrency wallets connected to the internet, allowing for instant digital currency transfers. Cold wallets or hardware wallets like Ledger and others are not connected to the internet, keeping your funds safe from potential hacks.
Binance keeps user funds in cold wallets and uses hot wallets for fast transactions.
For example, when you want to withdraw money from the exchange, Binance will first send the funds to a hot wallet, then transfer to the final address. This process protects user funds, preventing errors during the withdrawal process and safeguarding user address details.
Binance Safety First – Internal risk team, Compliance system
Binance has expanded its compliance and risk teams, focusing on the quantity and quality of new personnel to meet the necessary demands to provide users with the highest possible level of security.
By the end of 2024, the exchange will have more than 1,000 compliance staff and contractors.
Binance's internal risk management teams work closely with international law enforcement agencies to improve risk management standards and provide users with absolute dedication to security and compliance issues.
Incident prevention and response protocol
To prevent and respond to incidents, Binance has added the Risk Sniper channel, a new real-time alert system to detect high-risk addresses and links, providing customers with better means to access cryptocurrency safely. This channel provides alerts while also serving as an educational platform providing data on scams and security.
Such tools enable you to identify and report new scams, equipping users with 'digital weapons' to stay protected against potential threats.
Binance safety assessment: Top account security features
In addition to implementing various solutions for incident prevention and response, Binance's account protection capabilities are robust thanks to strong account-level security features.
Binance's measures make storing your cryptocurrency nearly 100% safe.
Here are the top account security features you can rely on through Binance:
Two-factor authentication (2FA) – 2FA (including email verification, phone app, and authenticator) prevents bad actors from hacking your account and stealing funds.
Whitelisted withdrawal address – Restricts transactions to a set of pre-defined addresses while allowing certain verified addresses for withdrawals
Anti-phishing code – A unique string of characters that adds an extra layer of security to your Binance account, helping to thwart phishing attempts
Device management – Manage your logins on the exchange from multiple different devices
Identity verification through KYC – Simple/advanced KYC verification requirements allow Binance to know its customers and prevent bad actors from entering the platform and harming honest users.
Previous security incidents at Binance and responses
The most notable security incident targeting Binance occurred on May 7, 2019, when hackers managed to steal 7,000 Bitcoin in a single transaction.
According to Binance's official notes, a large-scale security breach occurred that day, and hackers managed to obtain a large number of user API keys, 2FA codes, and potentially many other information through various techniques including phishing, viruses, and other attacks.
The Binance security breach only affected the exchange's hot Bitcoin wallet, which held about 2% of the total BTC holdings at that time. All other wallets of the exchange were safe and unaffected.
Hackers patiently waited and executed coordinated actions through multiple seemingly independent accounts at the most opportune time. Their transactions were structured in a way that bypassed the exchange's security checks, and Binance could not block the withdrawal orders before they were executed.
After implementation, the withdrawal order triggered various alerts in the exchange's system, leading to the suspension of all other withdrawal activities following the incident.
Following the breach, Binance utilized the SAFU fund described above in our Binance safety assessment, and no user funds were affected due to security measures, according to CZ's official notes.
Other minor breaches included a cyberattack that took place on October 4, 2022, resulting in the theft of approximately 2 million BNB tokens worth over $570 million in fiat currency.
However, since the recent incidents, Binance has strengthened safety through various measures that the exchange has implemented.
How safe is Binance – Top security measures
Here are the top measures that make Binance a safe cryptocurrency exchange:
Implement new security measures to prevent account misuse
Detect and prevent user behavior that allows bad actors to gain an unfair advantage
Temporarily suspend or terminate the accounts of bad actors to prevent harm to the exchange's reputation
Increase monitoring of all account-related activities
Engage the community in the mission to catch bad actors by calling on users to report suspicious activities and rewarding verified cases
Assist law enforcement in investigations following various incidents
Provide feedback and solutions after cryptocurrency attacks in the industry
Support other cryptocurrency exchanges following unfortunate events
Binance Safety – Regulatory compliance and global oversight
Binance is currently present in over 100 countries, offering some products and services in the U.S. This cryptocurrency exchange has been granted 21 global licenses.
However, due to regulatory oversight, this cryptocurrency exchange is still unavailable in many regions around the world, including Canada, the Netherlands, Cuba, the Democratic People's Republic of Korea ("DPRK"), Iran, Syria, the Crimea region, and any areas not controlled by the government in Ukraine.
Management risks related to the exchange can be seen most clearly in the SEC lawsuit against the exchange and its founder, CZ, in June 2023. U.S. regulators accused the exchange of artificially inflating trading volumes, misdirecting customer funds, and misleading investors about its oversight activities.
However, since then, after CZ resigned and spent four months in prison, Binance, under the new leadership of CEO Richard Teng, has resumed operations in the U.S. and strengthened compliance and management measures, making it the safest choice for users.
The issues between Binance and the U.S. have concluded, resulting in World Liberty Financial (WLFI), the Trump family's cryptocurrency project, partnering with CZ. The founders of WLFI met CZ in Abu Dhabi in April to discuss the increasing global adoption of cryptocurrencies, establishing new standards, and taking cryptocurrency to new heights.
If some Binance users temporarily lost trust in the cryptocurrency exchange after the SEC lawsuit and CZ's arrest, this trust has been restored after the exchange strengthened compliance and management measures. Currently, Binance's safety is most clearly reflected in the growing number of users, which has exceeded 270 million.
User responsibility – A contributing factor to Binance's safety
The safety of Binance relies not only on the cryptocurrency exchange's compliance with strict regulations and safety measures but also on users responsibly adhering to the exchange's regulations to keep their accounts and funds safe.
Here are some tips you can use to ensure safety while using Binance:
Use strong passwords
Enable 2FA
Avoid phishing links
Monitor your login history and device access
Update Binance-related security measures and advice
Binance provides all the necessary tools to ensure your safety, but users must also be extremely cautious and stay updated with the exchange's advice and useful information for the safest experience on this platform.
Binance's safety measures compared to other cryptocurrency exchanges
Centralized cryptocurrency exchanges are continuously striving for regulation and compliance, and Binance is one of the safest options for you.
Binance's safety and transparency reach the highest levels compared to other cryptocurrency exchanges.
However, most centralized exchanges, including Bybit, Coinbase, Kraken, and others, also provide a reliable platform for users with strong security and safety measures, but based on our Binance assessment, this exchange remains a leader in the industry, continuously striving to provide the highest level of security and the best products and services for users.
This platform has high security while providing transparent information about transaction fees for users, along with increased trust thanks to the SAFU fund.
Pros and cons of using Binance – A safety and security perspective
Here are the most important pros and cons related to Binance's safety for users:
SAFU Fund (a $1 billion insurance fund for emergencies). History of major hacks (e.g., the 2019 BTC hack and the 2022 BNB hack).
Proof of reserves (PoR) ensures 1:1 asset backing. Continuous oversight from regulatory authorities and past legal issues (e.g., SEC lawsuit).
Cold wallet storage minimizes online risks. Binance may not be accessible in certain jurisdictions due to regulatory bans.
Advanced account security tools (2FA, whitelisting, anti-phishing, etc.). The complexity of security features may overwhelm new or less tech-savvy users.
There are 21 global regulatory licenses. User responsibility remains crucial; poor behavior can still lead to compromise.
Large risk management and compliance team (over 1,000 professionals)
Real-time Risk Sniper alert system to detect threats
Quick incident response with user funds fully refunded through SAFU
Educate and actively engage users (e.g., reporting and reward systems)
Continuous monitoring of account activities
Close partnerships with law enforcement agencies and global cooperation
Mandatory KYC/AML to prevent fraud and bad actors
Revamping compliance after 2023 under new leadership
Top industry-leading multi-layer security architecture
Binance supports other exchanges after attacks, leading in security by example
Conclusion: Is Binance safe to use in 2025?
Based on our Binance safety assessment, this cryptocurrency exchange is safe for users in 2025. After past incidents, Binance has made significant efforts to secure its platform and create a safe environment for users to benefit from its products and services.
Starting from the onboarding process, including management measures such as KYC and advanced account verification, to powerful algorithms analyzing potential threats and the SAFU fund, Binance's security measures and ongoing cooperation with global law enforcement highlight high standards of user safety.
Additionally, the exchange's PoR contributes to building strong user trust, reflected in the growing number of users, promoting global cryptocurrency adoption while building a safe and secure ecosystem for users, leading among other cryptocurrency companies.
Despite past attacks and issues related to the exchange, Binance's culture, resilience, efforts, and focus on user benefits have built a global reputation as the best and safest cryptocurrency exchange in the world.
However, we cannot conclude this safety assessment of Binance without emphasizing the importance of users adhering to the top industry security measures of this cryptocurrency exchange and taking responsibility for their cryptocurrency accounts and transactions on this platform.
Our final verdict on Binance's safety
As a final judgment, the question of whether Binance is safe to use in 2025 has a definite positive answer. If you're looking for a complex trading experience in a safe environment, there’s no better place than Binance to start your cryptocurrency journey.
Binance's security is strong enough to support innovation in a safe ecosystem.
Satoshi Nakamoto created Bitcoin with the goal of decentralization to provide freedom and an alternative solution to the traditional financial system that has many flaws. Binance, a centralized cryptocurrency exchange, combines advanced blockchain technology with the best features that centralization offers – safety and security – to allow you to trade Bitcoin and other digital assets safely in a secure environment.
Unfortunately, in terms of cryptocurrency exchanges and in a rapidly evolving world of innovation, the idea of freedom can be misunderstood, taken for granted, and exploited by bad actors who abuse honest users, and decentralization can become too risky.
Higher risks facilitate bad actors' infiltration, while cyberattacks and the lack of regulation, leading to digital chaos, will ultimately stifle advanced technologies.
Binance becomes a point of intersection between traditional values that help people feel safe in a regulated environment and the innovation brought by the growing cryptocurrency industry. Binance embraces the gift that Satoshi Nakamoto created for the world and ensures that everyone can use it safely, and that no one abuses the precious legacy of its creator.