Main Takeaways

  • Binance Wallet uses multi-party computation (MPC) technology to keep your crypto safer by removing the need for a single seed phrase.

  • Before swapping tokens, always verify legitimacy, check liquidity, and adjust slippage settings wisely.

  • Connect only to trusted DApps and regularly review your connected apps and token approvals to reduce risk.

Your passport to Web3 starts here. Binance Wallet is designed to give you control over your crypto across the entire decentralized Web – from DeFi and NFTs to DApps. Since Binance Wallet uses advanced MPC (multi-party computation) technology that does not require seed phrases, security works a little differently.

In this guide, we’ll walk you through the essential security practices to stay SAFU with Binance Wallet.

How Binance MPC Wallet Works

Binance Wallet uses MPC (multi-party computation) technology to enhance your wallet’s security. Instead of relying on a single private key, MPC splits your key into three encrypted key shares. Two out of the three will be required to access your wallet. This means your funds stay protected even if one key share is compromised.

To stay safe, always back up your wallet and set a strong recovery password. If you lose access, you’ll need both your backup and recovery password to restore it. Binance offers three ways to back up.

Quick backup is built-in and lets you securely encrypt and back up your wallet without needing a recovery password. Alternatively, back it up using iCloud or Google Drive or QR code.

Regardless of which type of wallet you use, never import a seed phrase or private key given to you by someone else. Doing so could expose your funds to theft the moment scammers gain access to your wallet or even when your funds are transferred.

SAFU Transactions

Receiving crypto to Binance Wallet simple – just tap [Receive] on the Wallet homepage. 

You can add funds by depositing directly to your Web3 wallet address, withdrawing from your exchange account, scanning your wallet’s QR code, or purchasing directly using a card, Apple Pay, or Google Pay.

Sending, however, requires extra care. Even a single incorrect character in an address can lead to irreversible loss. So it is wise to always double-check every character of the destination address before hitting send. To further reduce risk, avoid copying addresses from your transaction history – these may be outdated, tampered with, or incorrect. Instead, consider using Binance’s in-built address book feature to save trusted addresses.

In addition to verifying the recipient’s address, also ensure that the networks match, as sending tokens over the wrong network, such as transferring an Solana-based token to a BNB Chain address, could result in lost funds. Hence, it’s good practice to send a small test amount to confirm it arrives correctly, especially when you’re transferring large amounts. 

As you transact, your [History] tab will show a running log of incoming and outgoing transfers. While helpful for tracking, it's not foolproof. Unknown tokens appearing in your history may be high-risk or outright scams. Some may carry warning icons, but not all do, so always do your own research before interacting with unfamiliar tokens or contracts.

Use the transaction details page to double-check amounts, addresses, and token information – but never rely on it blindly. Always confirm that everything matches what you intend to send. Staying vigilant ensures your transactions stay SAFU.

Swapping tokens SAFU-ly

The swapping function on Binance Wallet lets you exchange one token for another directly – no external platform needed. To swap, simply choose the token you want to exchange, select the one you want to receive, and confirm the details. The process is designed to be intuitive, with access points across the homepage, [Markets] tab, and [Trade] tab. You can even start from any token page and search by symbol or contract address.

To ensure a safe and successful swap, be sure to review and follow three essentials first.

Token Legitimacy

Firstly, check whether the token you're interacting with is trustworthy. Because the wallet gives you access to far more tokens than the Binance Exchange – many of which haven’t gone through formal listing reviews – it’s important to do your own research. You may come across tokens with misleading names or symbols, or those flagged with warnings which might point out that it’s a spam or honeypot token. If a token lacks an audit or shows suspicious behavior – such as having only buyers and no sellers – it’s best to steer clear.

Liquidity

Liquidity is also key. Tokens with low liquidity can be harder to sell, more prone to large price swings, or may even cause your swap to fail. But there’s another risk: low liquidity may signal that the token isn’t what you think it is. Official or popular projects usually have higher liquidity and a larger fully diluted valuation (FDV) – the estimated total value of a token based on its current price and maximum supply. If a token seems to have little trading activity (also known as volume) or a surprisingly low FDV, it could be a fake or unaudited project. Always verify that the contract address matches the official one – don’t just rely on the token symbol alone, as scam tokens often try to disguise themselves using “official”-sounding ones.

Slippage

Ever had a swap fail unexpectedly with a slippage error? That’s usually because the price moved too much before the transaction could be completed. Slippage refers to the difference between the expected price and the actual execution price of a trade. If your slippage tolerance is set too low, the transaction may not go through. Set it too high, and you might end up paying more than expected. Before confirming any swap, always check the estimated amount you’ll receive, gas fees, and slippage settings.

Connecting to DApps SAFU-ly

Decentralized applications (DApps) let you interact directly with blockchain services like lending platforms and NFT marketplaces. Within Binance Wallet, you can connect to DApps by scanning a QR code, browsing verified options via the [Discover] tab, or entering a DApp’s URL manually.

When you connect your wallet to a DApp, you’re allowing it to read your public wallet address and view your token balances. Some DApps may also request you to sign a message to prove wallet ownership. However, if a DApp prompts you to sign something that looks unreadable or unrelated, it could be a phishing attempt disguised as a harmless request.

Merely connecting to a DApp usually does not grant it permission to move your funds. However, a malicious DApp can prompt you to sign a deceptive smart contract that may give the site permission to interact with your funds. Hence, only connect to credible DApps and always review smart contracts before signing.

To stay safe, make it a habit to regularly review both your connected DApps and your token approvals. Tap [More] and select [Connected DApps] from the homepage to see which apps have wallet access. If you spot any you no longer use or recognize, disconnect them. This simple practice helps minimize your exposure to potential exploits or unforeseen vulnerabilities.

Final Thoughts

Binance Wallet removes the single point of failure that comes with seed phrases, giving you a safer way to manage your digital assets. But even with strong tools, security is never fully hands-off.

To stay SAFU, back up your wallet, verify contract details, and always conduct due diligence. This doesn’t just mean looking things up online – it also includes checking a token’s liquidity and reviewing slippage settings, which can reveal risks that aren’t obvious at first glance. Lastly, make it a habit to regularly review your connected DApps and revoke unused approvals to minimize exposure.

Staying informed is the best way to stay protected. If you want to go deeper, explore our Know Your Scam series, browse Binance Academy, or keep up with insights from our Security Blogs.

Further Reading

Disclaimer: Binance Wallet is an optional product. It is your responsibility to determine if this product is suitable for you. Binance is not responsible for your access or use of third-party applications (including functionality embedded within the Binance Wallet) and shall have no liability whatsoever in connection with your use of such third-party applications, including, without limitation, any transactions you dispute. Please carefully review the Binance Wallet Terms of Use and always do your own research.