It will entirely depend on what caused Binance to go out of business.

If it’s the case that Binance shut down and goes bankrupt due to things like bad business handling or bad capital and finance management, there’s a decent chance that Binance would simply notify their users that their service is shutting down, while giving them ample amounts of time to withdraw their money.

On the other hand, if it’s the case that Binance goes bankrupt through a hack on their cold wallet storage, it’s a lot less likely for you to gain back access to your funds even if Binance has their insurance fund. Take note though, that it seems that Binance is not FDIC insured.

Is Binance safe?

Since Binance’s inception in 2017, Coinbase still hasn’t had a single devastating hack as of yet. Knowing that exchanges get hacked all the time, Binance being secure for 5 solid years is a nice feat.

Binance CEO ChangPeng Zhao said it best: “funds are safu”.

But regardless — while we should hope for Binance to be hack-free hopefully forever, leaving all your cryptocurrency holdings on exchanges is quite irresponsible. Great and easy-to-use hardware wallets like the Ledger Nano X have existed for a while now, hence there’s really no reason for anyone to not use a hardware wallet unless you don’t know how to navigate a computer or smartphone.

To learn more about Binance’s security, you can refer to our article here.

What’s a hardware wallet?

Hardware wallets are mostly small flashdrive-like devices used for cryptocurrency enthusiasts to secure their funds. With a hardware wallet, you don’t need to worry about your phone or your computer getting hacked because your wallet’s keys are always secured inside the hardware wallet device.

How to protect yourself

Exchanges get hacked all the time. To put it simply, only use exchanges such as Binance to buy and sell bitcoin and cryptocurrencies. It’s far better to store your funds through a reputable hardware wallet such as the Ledger Nano X. That way, you can make sure that your funds are totally secure, and that you will have access to your funds every single time.

Quick note: always purchase Ledger hardware wallets from the official website. Not on Amazon, eBay, etc. to prevent you from purchasing a fake/tampered device.

To learn more about Bitcoin and cryptocurrency wallets, you can refer to our in-depth guide here.


Thanks for reading!

CryptoSec was found to help people learn how to protect their bitcoin and cryptocurrencies from scammers and hackers. If you know people that are interested in crypto, feel free to share our articles to help them out with security.

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