Trading and buying bitcoin or any cryptocurrency on a mobile app can be a bit concerning when it comes to safety. Many people worry that the app developers might steal their data or transaction records, so it’s important you find a bitcoin app that will hold your information securely and have all the features you’re looking for.
One of the safest bitcoin apps is the Binance.US mobile app, which has high-security rankings. Some features to look for in a bitcoin app to ensure safety is secure purchasing and trading using two-factor authentication and that the app stores user assets using a cold digital wallet.
To learn more about the security of the binance.US app and other safe bitcoin apps, as well as to know what to look for in a bitcoin app, continue reading.
Are Bitcoin Apps Safe?
Bitcoin apps that have a good reputation and high rankings take data security very seriously, thus making them safe to use for the user. We recommend you choose an app that has a lot of downloads and plenty of good reviews on the app store/play store.
You’ll also want to research what security features are offered, and research the app’s history to see if it has been hacked by an outside party before. Lastly, you should ensure that it stores your data offline via a cold digital wallet, rather than online via a hot digital wallet. Hot wallets store data online, and they can be less secure than cold wallets that are stored offline.
It can be difficult to trust an app with your data and bitcoin wallet if it stores your data online where it can be more easily accessible if the app has been hacked once before, if it doesn’t have many security features, or if the app is seldom downloaded and has very few good reviews.
If the app has very few downloads and good reviews it could be that the app is still very secure but it’s simply very new on the market so it hasn’t had much time to make a name for itself yet. If that’s the case, it’s still better safe than sorry, and you’ll feel better rest assured downloading a bitcoin app that has already been used and enjoyed by so many. Of course, reviews and the number of downloads isn’t the only thing you’ll look for, but they are a huge plus in addition to the previously listed features.
Safety Features of Binance.US
Binance.US is a child company of Binance Holdings, which uses state-of-the-art storage technologies and two-factor authentication to protect all of your bitcoin and USD assets. Binance.US follows all US trade regulations, so you can ensure that your trading is legal, and you’ll be able to make trades peer-to-peer and crypto-to-crypto, while also being able to trade crypto for US dollars. Binance.US will also store your assets offline in cold storage, using a cold wallet, which they offer to all users. Click here to become a member of Binance.
The app is also secure using two-factor authentication, which adds an extra layer of security and protects all app users’ funds and other sensitive information, including their card information. The only information that Binance.US will use will be used to track you across other apps and websites is your app usage data, but it is not linked to your identity. This is simply for keeping track of how much bitcoin is being bought and traded so that such data can be used for global cryptocurrency charts, as supply and demand of bitcoin can have an impact on the prices of bitcoin.
Additionally, Binance.US uses a bug bounty program that ensures greater security for the app and the data of users. This bug bounty program is called bug crowd, which rewards individuals who discover bugs in the app that could leave room for potential hacking and for reporting those bugs. It also enables ethical hackers to test the app and see if there are any vulnerabilities in the system so that any bugs that those ethical hackers report can be fixed right away.
Any user can become an ethical hacker or bug bounty hunter and search for bugs, and any user who happens across those bugs can report them and receive a reward. Binance.US also only rewards those who find bugs with security-related issues that relate directly to cryptocurrencies and their components. Rewards will be paid out to those bug bounty hunters in Binance stablecoins, or BUSD.
When looking into the Binance.US app, you’ll likely be made aware that the company was once hacked in 2019 and lost over $40 million dollars of bitcoin. You should know, however, that this was the parent company, Binance Holdings, not Binance.US, which is the child company we are referring to here.
Since its launch after 2019, the company implemented these security features listed above that Binance Holdings did not have and may have caused them to be hacked both in 2019 and later on in 2022. As of October 2022, Binance.US topped the rankings of most secure cryptocurrency exchanges, above many other secure cryptocurrency exchange companies like Gemini and Coinbase, despite this child company only being launched in September of 2019.
Other Safe Bitcoin Apps
Some other top bitcoin apps that are highly rated also have several security measures implemented into them. These apps include, but are not limited to:
- Square Inc. Cash App: Encrypts payment information, verification.
- Bisq.network: Ensures safe transactions.
- Kraken: 95% of deposits stored offline in cold storage, platform security, and servers in secure cages under 24/7 surveillance.
- Bybit: Never been hacked, funds remain secure.
- Crypto.com: Uses industry-leading cybersecurity infrastructure, and built-in data privacy assessments, 100% of cryptocurrencies are stored offline in cold storage.
- Gemini: Security is the main selling point, bug bounty program, two-factor authentication.
- Naga: Segregated bank account from user bank accounts, multi-factor authentication, mandatory account verification, strict withdrawal policies.
- Coinbase: FDIC-secured user accounts, connect and trade bitcoin using bank account, blocks suspicious accounts, users can use a security key to protect the account, uses state-of-the-art encryption and security.
- Huobi: Holds user funds on multi-signature cold wallets.
- Pionex: Security is tied to Binance and Huobi, where most of its trades take place and where funds are stored.
- Kucoin: Micro-withdrawal wallets, multilayer encryption, risk control departments that oversee data operations, multifactor authentication.
- Gate.io: Passed professional auditing security tests, utilizes third-party cloud security defense services to detect malicious traffic and attacks, encrypted data transport layer, anti-DDOS attach mechanism, implements DNS security to prevent hijacking, uses web application firewall system to stop illegal intrusions and tampers.
How Does a Cold Digital Wallet Differ From a Hot Wallet?
When looking for a bitcoin app that is safe and is going to hold your data and information securely, you’ll want to look for an app that uses a cold digital wallet, rather than a hot wallet. These wallets are where all your cryptocurrency and data will be stored and serves as a digital wallet to hold all your currency. So, what’s the difference between a cold wallet and a hot wallet?
The main difference is that a cold wallet is a cold form of data storage in which your data is stored on hardware devices that hold onto your information online. A hot wallet, on the other hand, is connected to the internet, and therefore your data is stored online.
There are some authentications and barriers that keep your data protected in a hot wallet, but a hot wallet is still easy for hackers to access than a cold wallet. For most apps that use cold storage, you may be required to purchase an “external” device where your data will be stored, whereas apps that use a hot wallet will store your data for free, but this leaves it vulnerable to hackers.
The hardware in which cold wallets are stored provides an extra security measure and acts as a third-party bank for your funds, and a cold wallet can only be connected to your online bitcoin account when while physically plugged in or a unique QR code is used so that it never unintentionally connects wirelessly to an online server.
A hot wallet is also safe in that it uses recovery seed phrases as a security measure to back up your data if your phone or computer is stolen. Then you’ll be able to access your funds and data keys using that recovery seed phrase, but you’ll have to buy a new hardware device that is cold wallet compatible.
Things to Look for in a Bitcoin App
In addition to cold wallet cryptocurrency storage, there are a few things you can look for in a bitcoin app to ensure it will keep your data safe. There are also some things to look for that are great bonuses when it comes to bitcoin apps. Some safety features you should look for before downloading and using a bitcoin app is that they use two or more factor authentication, which will ensure that no one else but you will be able to get easy access to your data and funds. You’ll also want to look for apps that use a bug bounty program, which helps to ensure that any new bugs get fixed right away because some bugs can leave your data and funds vulnerable to hackers.
In addition to these features, we recommend looking for cryptocurrency trading apps that are peer-to-peer because these apps charge very low fees for trading. They’ll also allow you to deposit your USD money (or in other words, buy cryptocurrency) at low fees and using a variety of different payment methods. They should also charge no or very little fees for withdrawing your currency.
When looking for a bitcoin app, it’s also smart to look for one that will allow you to invest in various ways other than buying cryptocurrencies, such as mining, staking, and taking crypto custody. Crypto custody is a way to protect large amounts of funds and keys from loss or theft using secure off-chain cold storage.
Lastly, you’ll also want to look for crypto apps that will allow you, as a trader, to track your crypto prices in real-time, while also receiving real-time alerts of price surges and other notifications. Good apps will have an advanced charting function which will help you with trading decisions in order to maximize profit.
Fees to Expect From Bitcoin Apps
Before you decide on a bitcoin app, regardless of how securely it promises to hold your funds and data, you should expect there to be some fees. There are plenty of apps that charge much lower fees than others, so you’ll want to look into an app like Binance.US that charges low fees.
The common fees include fees for trading cryptocurrencies, depositing USD to invest in bitcoin, deposits when moving crypto to online storage spaces, and withdrawing bitcoin funds you bought through the app or withdrawing USD funds that accumulate over time after purchasing bitcoin. In addition to the transaction costs, bitcoin apps that offer loans may charge fees when you choose to loan bitcoin from the app.
You may also be charged network fees so that your transaction can be recorded and validated on and by the public blockchain. You should keep in mind that these fees: trading, depositing, withdrawing, loans, and network fees, may differ between apps. Most apps will charge at least one of these fees, and some will charge more of these fees than others. Also, keep in mind that the number of money apps will charge for each of these fees will vary by app, but usually between 0% and 1.5% of the funds made to complete the action associated with that fee.
In other words, if you decide to buy $1,000 USD of bitcoin on a bitcoin app, you can expect to pay about $0 to $15 in addition to that money you invested. You may also be charged somewhere between $0 and $15 for making a deposit through the app or when borrowing bitcoin or completing some other task.
There are some apps that will charge even more than $15, and sometimes upwards of $45. These considered you shouldn’t be surprised when the app asks for payment when completing a number of actions, and you should factor this in when calculating your investment sacrifice and possible return on investment if you’re looking to make a profit from buying bitcoin.