Your Comprehensive Guide to Safely Storing Cryptocurrencies on Binance
Binance storage refers to how you store the cryptocurrencies you buy or trade on the platform. Binance offers two main ways to store coins:
1. Hot Wallets:
- When you use the Binance platform, the coins you own are usually stored in hot wallets linked to the platform.
- Advantages: Easy access to currencies for instant trades, withdrawals or deposits.
- Disadvantages: Although Binance takes strong security measures, hot wallets are always more vulnerable to hacking risks compared to cold storage.
2. Cold Storage:
- Binance stores a large percentage of its users' assets in cold wallets to ensure security.
These wallets are not connected to the internet, making them more secure from cyber attacks.
- Advantages: Cryptocurrencies stored cold on Binance are more protected from hacking attempts.
- Disadvantages: Users cannot access these wallets directly, as they are part of the platform's security measures.
### How to secure storage on Binance:
- Two-factor authentication (2FA): It is recommended that you enable two-factor authentication for your account to add an extra layer of security.
- Security Permissions: Binance provides several security settings such as a list of trusted addresses that can only be withdrawn to.
- Withdrawing coins: If you want extra security, you can transfer your coins to an external cold wallet like Ledger or Trezor.
Storage on Binance is largely secure thanks to its advanced security practices, but investors holding large amounts of coins may prefer personal cold wallets.