Do veteran traders also fear 'black swans'?
As a newcomer to the cryptocurrency world, do you also have this kind of anxiety?
'What if the exchange runs away?'
'If hackers steal my coins, who do I cry to?'
'Even though Binance is a big platform, what if something goes wrong?'
In this uncertain cryptocurrency market, Binance has long provided us with a 'massive commercial insurance'. Today, let's break down Binance's SAFU fund in simple terms—it's the 'last line of defense' that allows you to sleep soundly, knowing there's someone to support you when you fall.
One, what is SAFU? (Don't memorize the words, just understand this sentence.)
SAFU (Secure Asset Fund for Users) translates to 'User Security Asset Fund'.
Simply put: This is a 'private stash fund' specifically set aside by Binance.
This fund is not for making money, but for 'losing money'. Since 2018, Binance has quietly set aside 10% of transaction fees. Whenever user assets are lost due to platform security issues (like hacking or system vulnerabilities), Binance will directly open positions and use this money to compensate you.
A little tidbit: 'Funds are SAFU' was originally a meme in the crypto circle, later becoming a symbol of global user trust in Binance.
Two, has it really compensated? Look at this hardcore case.
It's better to compensate quickly than to sound good.
In May 2019, Binance experienced a famous hacking incident. At that time, hackers used phishing software and viruses to bypass multiple verifications, stealing 7,000 BTC from Binance's hot wallet in one go (which is an astronomical sum at current prices!).
If it were a small platform, they might announce bankruptcy and run away that very night. But how does Binance handle it?
Within 1 hour: Suspend all deposits and withdrawals, and stop losses.
Full responsibility: Zhao Changpeng (CZ) directly tweeted at the time: 'All losses will be covered by the SAFU fund, and users will not bear any financial loss.'
Result: The users' account balances were intact, and their confidence actually increased.
This is the significance of SAFU's existence: mistakes made by exchanges do not require users to pay the price.
Three, why is it a 'calming pill' for newcomers? (Professional in-depth analysis)
Why is SAFU more reliable than other exchanges' 'verbal commitments'?
A fully transparent 'treasury': The funds in SAFU are not just empty promises. You can check the addresses of these wallets on-chain at any time. Currently, the total value of this fund is consistently around $1 billion, primarily composed of BTC, USDC, and BNB.
Risk resistance ability: Even if the market crashes (like the volatility in 2024), Binance will dynamically adjust its positions to ensure that this fund is always sufficient to cover losses.
Not just protecting against hackers: Besides theft prevention, when the platform experiences significant systemic technical failures leading to non-human operational losses, SAFU also serves as a potential backup.
Four, operational advice: What should newcomers do?
Although Binance has SAFU, we also cannot 'run naked'. Learn the following three tricks to turn your assets from 'safe' to 'absolutely safe':
1. Activate the strongest protection: Although there is insurance, if you are hacked due to a simple password or clicking on a phishing link, SAFU may not be able to help you. Always enable 2FA (Two-Factor Authentication), preferably linking it to Google Authenticator or a physical security key (YubiKey).
2. Recognize the 'anti-phishing code': Activate the 'anti-phishing code' in Binance settings. From now on, all official emails sent to you will have your own set code in the upper right corner. No code? It’s all a scam!
3. Differentiate between hot and cold wallets: If you are a long-term holder, it's advisable to store large funds in a cold wallet; if you are trading, taking advantage of opportunities, or participating in new projects, keeping your money in a Binance account with SAFU protection is actually safer than using a small wallet of unknown origin.
Conclusion: A sense of security is the top priority in the crypto world.
In the crypto world, surviving is more important than how much money you make.
Binance's SAFU fund is like a bulletproof vest for all users. As a newcomer, choosing a platform with insurance, compensation cases, and a $1 billion fund backing is our first lesson in entering the market.
Your assets on Binance, Funds are SAFU!
Note: This article is for reference only and should not be considered investment advice. The crypto market carries risks; proceed with caution.
