In 2021, Binance was put under investigation by both the United States Department of Justice and Internal Revenue Service on allegations of money laundering and tax offenses. Binance was initially based in China, then moved its headquarters out of China shortly before the Chinese government imposed regulations on cryptocurrency trading. Binance was founded in 2017 by Changpeng Zhao, a developer who had previously created high frequency trading software. However, Binance doesn’t offer any such service to store your coins offline.Binance Holdings Ltd., branded Binance, is a global company that operates the largest cryptocurrency exchange in terms of daily trading volume of cryptocurrencies. Cold wallet storage: Coinbase offers the service of holding your crypto tokens in institutional-grade cold wallet storage to keep your crypto tokens safe and secure.However, the policy doesn’t cover any losses that occur because of unauthorized access of your account resulting from loss or breach of credentials. In comparison, Coinbase insures fiat balances held in your account and has a crime insurance policy that insures accounts against losses from theft, including cybersecurity breaches. In fact, the term SAFU is derived from Binance CEO Changpeng Zhao tweeting, “Funds are safe” during unscheduled maintenance of the platform. It is an emergency insurance fund that secures the tokens held on the exchange through a fund comprising 10% of the total trading fees that are paid to the exchange. SAFU: Binance offers the SAFU feature to its users.2FA: 2-factor authentication is a feature on both Coinbase and Binance that requires you to enter an additional verification code you receive on your cellphone as another layer of security after entering your username and password to login on the platform.The reputation and history of the exchange plays an important role. Reputation: The cryptocurrency industry has been the subject of several scams, hacks and regulatory changes.Storage options: Because your cryptocurrencies stored on the exchange could run into several 1,000s of dollars, it’s crucial to assess the range of storage options available to you on the exchange you’re trading on.This ensures that you don’t miss the bus while frantically attempting to register on an exchange that offers the token you’re keen on buying. Cryptocurrencies supported: The wider the range of the cryptocurrencies offered by a cryptocurrency exchange, the more opportunities are on offer for you to get into the price action of upcoming altcoins that interest you in a timely manner.This will enable you to make an informed decision about which exchange you would choose to stake a certain cryptocurrency. You should assess which tokens you would be interested in staking and determine whether the cryptocurrency exchange that piqued your initial interest offers staking options for the token and the associated APR with that coin. Staking options: Different cryptocurrency exchanges offer a different set of cryptocurrencies that you can stake on the platform and offer varying annual percentage rates (APR).It’s important that you assess which of the trading features on offer are more suited to your investing needs and portfolio requirements. Trading features: The unique features that a certain crypto exchange offers often can dictate your trading style and heavily influence your portfolio.Security: It is highly essential that the exchange you choose to transact with your cryptocurrencies is one that has several fail-safe mechanisms that secure your tokens with features like 2-factor authentication (2FA), Secure Asset Funds for Users (SAFU) and hackability.
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