#BTCReserveStrategy A BTC reserve strategy, particularly in the context of an exchange like Binance, refers to the practice of holding a substantial amount of Bitcoin to back customer assets. This is often part of a broader "Proof of Reserves" (PoR) system. After the collapse of FTX, transparency became a major concern, and many exchanges, including Binance, began publishing regular audits to show they hold enough assets to cover all user deposits.

Binance's BTC reserve strategy is crucial for building user trust. By demonstrating that they have a 1:1 or greater ratio of Bitcoin reserves to user liabilities, they assure customers that their funds are safe and can be withdrawn at any time. This strategy uses cryptographic techniques like Merkle trees to allow users to independently verify their balances are included in the public audit, promoting a more secure and transparent ecosystem.