A lot of people are still in shock that binance could get drained, or hacked, whatever.
It's been literally the most secured centralized exchange you can keep your assets, but shockingly they've been hacked three times, and the last one which was the early hours of yesterday is the biggest in crypto...
and inasmuch as we can begin to champion decentralized wallets as options to save funds, you must understand that the most popular decentralized systems of keeping assets have a flaw in their coding that lets hackers reverse engineer what was supposed to be a genuine innovation.
Places like Hive are the most secured places to keep a crypto asset, and this isn't because we're keyless (which we're not) but because we recognize to the essence or the strength of owning your keys which gives you 100% custody is also the same way or method that lets a scammer gets hold of your asset by tricking you to input your key in mostly a fake giveaway site.
We understand that this is possible, and people can choose to keep their asset locked up through HBD or Hive power. In reality there's still a possibility that we can increase this by creating what's called a deep saving mode, where we can choose to keep an asset for the durations of the period we want, which in turn makes it hard to even steal from anyone especially if they've been successfully tricked by a scammer to input their keys.
However, apart from the system we have in place, decentralized savings is a disaster. Especially if you're an active wallet user and click a lot of links, infact, scammers don't even need you to click links anymore, because provided your DEX wallet has a key, there's already a coding flaw, infact, there are many coding flaws that scammers will mostly take advantage of to actually scam you. This is why a DEX wallet is a disaster for saving.
Someone we underestimate the level of safety that centralized exchange brings simply because we decentralized folks have the "not your key, not your coin" ideology. In actually sense, this is not related or relevant to a DEX hot wallet that you can open through metamask or trustwallet.
Hackers now have AI systems that helps them search for DEX wallets that holds money in them, and this is all these hackers needs to hack people. Realistically, the "not, your key, not your coin thingy" is only really true with a place like Hive, because of the systems we've put in place in case a person gets compromised.
When you're using a hot wallet with a key, there are no firewalls or in-built systems that protects you, and since it's completely decentralized, when you lose money through a hack, then you're never getting that money back, and this is where a tier one CEX like Binance comes in
So is binance unhackable?
Hell no, but it's practically indestructible in the sense that the biggest thing that could bring it that which is a hack is already prepared for. A tier two or tier three CEX like bitget or bybit might go into extinction if they hacked for SIX BILLION DOLLARS.
Now, they'll probably not have that kind of volumes, because people probably don't trust them as tier two exchanges, they're probably mostly used as marketplaces and nothing more.
Also, CZ binance is one of the earliest people in crypto, and he's probably way richer than we know, and while a lot of people thinks he made more as binance owner, he probably made money by being here way back in 2013, and a lot of these money are in places we don't even know.
So, getting hacked is possible because AI and advancement is making scammers and hackers have leverages to do horrible things, but recovering from a hack, is something binance is 100% capable of doing and that's why a lot of people trusts and uses the exchanges, because let's face it, unless you're taking your money off chain and online, the risk of hacks is everywhere.
I wished I learned about all these before I got hacked money that took me a year to earn, but I guess it's just life.
