Is Binance a scam?
Are you wondering if Binance is 100% legit? In this article, we will investigate whether Binance is a scam so you can start trading crypto with peace of mind.
Is Binance a scam?
Binance is not a scam! Binance is the largest crypto exchange in the world and has a volume of tens of billions of dollars per day. In this part of the article, we will examine in more detail why Binance is not a scam.
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Binance secured assets
A good sign for the legitimately of Binance is that they put a portion of the transaction fees into an insurance fund. They use this money to compensate customers in case of possible hacks.
This happened, for example, in 2019 when 7,000 Bitcoins where stolen from users. Binance fortunately kept its word and refunded all users their money.
Why do some people think Binance is a scam?
Some users believe that Binance is a scam despite its high level of reliability. This is often caused by Binance’s sometimes sketchy reputation. They did not always follow local laws properly, which blocked the option to withdraw funds in some countries. This gives some people the wrong impression that Binance is a scam.
In addition, some users experience problems logging in because the 2FA code is not accepted. Fortunately, Binance solves these problems through their customer service.
I myself have been using Binance for some time now and I am sure that the company is legitimate. Withdraws are always processed correctly in the end and they offer one of the most comprehensive trading platforms in the world.
Recognising Binance Dangers
Although Binance itself is not a scam, there are of course many scammers active in the crypto world. In this part of the article, we will discuss well-known scams that you should watch out for. By keeping these in mind, you can avoid losing your deposit because a criminal manages to break into your account.
Fake text messages
Sometimes Binance users receive fake text messages where the sender pretends to be a Binance employee. They then tell you that your Binance account has been hacked and that you should send your cryptos to a secure wallet address. Do not do this! The scammer will only try to steal your cryptos and will disappear when you have transferred the funds.
Hackers also regularly send fake e-mails with a link that leads to a copy of Binance. They then ask you to, for example, change your password. When you do this, you send the current Binance password directly to the hacker. By enabling 2FA protection and securing your account with a phishing code, you make it a lot harder for hackers. In this article you can read in more detail how to do this.
Verification code scams
If your account is sufficiently secure, hackers cannot simply withdraw your funds when 2FA is enabled. They must first enter the security code you receive on your phone. Smart hackers try to convince you via, for example, WhatsApp to send this verification code to them. Binance will never ask you to share the Binance verification code: so do not do it!
Account blocked scam
Hackers and scammers also regularly send messages that your account is blocked. They then tell you that you have to follow a link to make your account accessible again. Binance never sends e-mails telling you to click on a link when your account is blocked. Therefore, do not be alarmed by such messages: ignore them.
QR code scam
Sometimes hackers send you a QR code that you should scan to continue using your account. Hackers can then gain access to your account when you follow this code. Remember that Binance staff will not contact you and will certainly not ask you to follow these kinds of links.
Tips to protect yourself from Binance scams
- Go through the verification process so your account is in your name
- Activate 2FA protection so you can only log in with your phone
- Ignore messages from Binance ’employees
- Report suspicious activities directly to Binance via the live chat
- You can always verify employees on the Binance website
Conclusion: Binance is legitimate
Although you may experience problems with Binance, the platform is 100% legitimate. On Binance, you can trade various cryptos reliably. Because Binance does not always follow local rules properly and is not regulated everywhere, its reputation has taken some dents. Nevertheless, the exchange has an excellent track record when it comes to security.
However, it is important to use your common sense. Binance employees will never just contact you with requests to transfer money or crypto. There are thousands of scammers worldwide who try to steal your crypto assets with all kinds of clever tricks. In this article, you can read in more detail how to protect your account from these scams.