Should coins be on the Binance exchange? Is Binance Wallet Safe?
– The broker you should try to trade cryptos & US stocks. Learn more!
Should coins be on the Binance exchange? Is Binance Wallet Safe? What are the ways to store cryptocurrency safely and securely? If you only have $1000, you will know to cash or deposit it into an online account to spend. But if you have millions of dollars, where to put the money can cause you to start thinking and needing to calculate. The same goes for crypto. If you only have a few cryptocurrencies to trade, you won’t have to think too much. But if you currently own a large amount of BTC or a certain coin, its value is tremendous to you. Or, more simply, you do not intend to trade cryptocurrencies every day but want to buy and hold for a long time, to inherit for your children, for example. That’s when you feel the need to think about storing this digital asset seriously. This article answers your questions and helps you know how to keep your crypto assets safe.
Some ways to store cryptocurrencies today
Hot wallet (online wallet)
An online wallet is like your Internet banking transaction account. This type of wallet is trendy and convenient, suitable for regular traders to make profits. When used, hot wallets need to be connected to the Internet and are often created for free, easy to use.
However, hot wallets have a disadvantage that is not as high security as cold wallets. Anything Online that exists on the Internet is vulnerable to hackers. And an online wallet is also an Internet product, so it will not be 100% secure.
Some popular hot wallets
1. Blockchain wallet currently supports 4 coins: Bitcoin, Ethereum, Bitcoin Cash and Stellar (XLM), stablecoin PAX.
This is a pretty secure wallet, and registration and account verification are easy. However, the number of supported coins is limited. Besides, this wallet is only used for storage. You have to transfer coins from the blockchain wallet to the exchange first when you want to trade. This can be time-consuming if you trade often.
2. Coinbase.com wallet is also quite popular nowadays. Coinbase supports more coins, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin (LTC), ZRX, Basic Attention Token (BAT), USDC, ZCash (ZEC), Bitcoin SV (BSV), Ripple ( XRP), Stellar (XLM).
Just like a Blockchain wallet, you need to transfer coins from the Coinbase wallet to exchange before you want to sell your coins.
3. The most widely used exchange wallet today. When using the exchange’s wallet, you can buy/sell coins at any time. In particular, wallets on exchanges often support a large number of different coins. Therefore, you will not need to spend much effort before trading or finding a wallet to store coins. Especially the new coins on the exchange are not popular, and often there are few other wallets to support.
Some of the wallets on famous exchanges today include Binance, Huobi, Okex, Bittrex…
* See more: The complete guide Binance from a to z
* See more: The complete guide Binance from a to z
Cold Wallet (Offline Wallet)
In contrast to hot wallets, cold wallets are used to store coins offline. Cold wallets have high security because they do not connect to the Internet, so hackers cannot penetrate.
However, nothing is 100% safe. It’s like leaving money in a safe but losing the key. Storing coins in a cold wallet but losing or forgetting the recovery code will not help you get the coins in the wallet. Besides, cold wallets also cost about 2.5 – 3 million VND to own. This is a significant expense for retail investors. In addition, the use of cold wallets is also quite complicated, so not everyone can use them.
Some familiar cold wallets
The two most commonly used cold wallets are wallets: Trezor Wallet and Ledger Wallet (Price is about 2,000,000 VND to own).
This is the most secure wallet available today. It acts like a USD.
To use Trezor and Ledger wallets, you need to answer 20 random questions and memorize the answers. In addition, you must also save a secret code [Private Key] so that when you lose or forget the password used to restore wallet access.
When you want to withdraw coins from the wallet, you need to press the pre-designed button to complete the operation like a magnetic key to start a car. If you lose your keys, you won’t be able to start your car. Trezor and Ledger wallets work similarly.
Although safe, using this wallet is also quite inconvenient when you want to transact. Therefore, it is usually only suitable for people who own many coins and do not have frequent transaction needs.
Should coins be on the Binance exchange?
After learning about the above-mentioned coin storage wallets, you already know which wallet you should choose. If you are a regular coin trader, using an online wallet on an exchange is the most suitable.
On the contrary, if you are a long-term investment for many years, owning many valuable coins, then storing them on cold wallets will be safer.
Should coins be on the Binance exchange? If you are trading at Binance, you will definitely want to know the answer. Binance exchange is being evaluated as the leading cryptocurrency exchange, supporting many different coins and having a daily trading volume of up to billions of dollars. Currently, Binance is one of the most reputable and famous cryptocurrency exchanges in Vietnam. The majority of regular traders store coins on Binance.
Conclusion: Is Binance Wallet Safe? Should coins be on the Binance exchange?
Binance wallet currently applies up to 4 layers, including Verification via SMS, Email, google authenticator… Normally, you must have at least 2 layers of security to make a coin transfer out of the wallet. Therefore, the Binance wallet is considered to be quite safe in the current cryptocurrency market. Currently, there are no cases of hackers infiltrating the Binance wallet.
However, there are some scams due to users’ lack of security knowledge in the cryptocurrency market having stolen coins stored on the Binance exchange wallet. To avoid this situation, you absolutely do not provide the OTP code sent to anyone via phone, email, or google authenticator verification code. Scammers often pretend to be Binance employees contacting you, pretending to assist you, and asking you to provide these security codes. Binance never allows employees to contact customers and ask for account security codes. Therefore, you are absolutely sober when you meet this offer.
Read more: Binance