A trading password (also called a fund password) is an additional layer of security verification required when performing sensitive operations. Once set, even if someone obtains your login password, they cannot withdraw, transfer, or perform any fund-related actions without the trading password. This is a critical measure for protecting your assets. After you Sign up on Binance, it's recommended to set up your trading password as soon as possible.
Binance's Security Verification System
Before diving into the trading password, here's an overview of Binance's overall security framework:
Login Password
Used to log into your Binance account. This is the most basic security layer.
Two-Factor Authentication (2FA)
Dynamic verification codes required during login and important operations, including Google Authenticator and SMS verification.
Trading/Fund Password
An additional password required for withdrawals, security setting changes, and other sensitive operations.
Anti-Phishing Code
Once set, every official email from Binance will include your anti-phishing code, helping you identify phishing emails.
Withdrawal Whitelist
When enabled, withdrawals can only be sent to addresses on your pre-approved list.
These security measures stack together to comprehensively protect your account and funds.
Steps to Set Up a Trading Password
Via the App
Step 1: Open the Binance App and tap your profile icon in the top left
Step 2: Go to "Security Center" or "Security Settings"
Step 3: Find the "Fund Password" or "Trading Password" option
Step 4: Tap "Enable" or "Set Up"
Step 5: Enter your desired trading password
- Recommended length: 8+ characters
- Include uppercase and lowercase letters plus numbers
- Must be different from your login password
Step 6: Re-enter the password to confirm
Step 7: Enter an SMS or Google Authenticator verification code to complete setup
Via the Website
- Log in to Binance on the web
- Click your profile icon in the top right, then Security Center
- Find the fund password setup option
- Follow the prompts to complete setup
Download the Binance App to manage all security settings in the Security Center.
When Is the Trading Password Used
After setting up the trading password, the following actions require it:
- Withdrawing cryptocurrency to an external address
- Selling via P2P trading
- Modifying security settings (changing linked phone, email, etc.)
- Managing API keys
- Adding withdrawal whitelist addresses
- Certain high-value trading operations
Routine buy and sell trades typically do not require the trading password, so your trading efficiency won't be affected.
Tips for Creating a Strong Password
Password Requirements
- At least 8 characters
- Include uppercase letters (A-Z)
- Include lowercase letters (a-z)
- Include numbers (0-9)
- Ideally include special characters (!@#$%, etc.)
Passwords to Avoid
- Birthdays (e.g., 19950101)
- Sequential numbers (e.g., 12345678)
- Simple phrases (e.g., password123)
- The same password used on other platforms
- Anything containing your name or username
Recommended Practices
- Use a password manager to generate random passwords
- Use a different password for each platform
- Change passwords periodically (every 3 to 6 months recommended)
- Store passwords in a secure location
What to Do If You Forget Your Trading Password
Reset via the App
- Security Center, then Fund Password, then Forgot Password
- Follow the prompts for identity verification (may require facial recognition, ID photos, etc.)
- Set a new trading password
- After resetting, there may be a 24-hour withdrawal restriction (security cooling period)
Reset via Customer Support
If self-service reset isn't possible, contact Binance support:
- Use the in-App live chat feature
- Provide your account information and identity verification
- Support will reset it after verification
Security Cooling Period
After resetting the trading password, Binance imposes a security cooling period (typically 24 hours) during which withdrawals are disabled. This prevents bad actors from changing the password and immediately transferring out funds.
Other Recommended Security Settings
Enable Withdrawal Whitelist
When enabled, withdrawals can only go to addresses you've pre-approved. Even if someone cracks your password and 2FA, they can only withdraw to your own addresses.
Setup: Security Center, then Withdrawal Whitelist, then Enable, then add your trusted addresses.
Set Anti-Phishing Code
Security Center, then Anti-Phishing Code, then set a memorable phrase. Every official email from Binance will include this phrase going forward.
Login Device Management
Periodically check "Device Management" in the Security Center to see if any unrecognized devices have logged into your account. If you spot a suspicious device, remove it immediately and change your password.
Sign up on Binance and enable all security features.
FAQ
Can the trading password be the same as the login password?
Strongly not recommended. Using different passwords for each provides much stronger protection. Even if your login password is compromised, the trading password can still prevent fund theft.
Do I need to enter the trading password for every trade?
No. Regular buy and sell trades typically don't require the trading password. Only sensitive operations like withdrawals and security changes require it.
Does the trading password support fingerprint or facial recognition?
Some phones and App versions support using biometrics in place of entering the trading password, depending on your device and App version.
Is setting up a trading password free?
Yes, completely free. Download the Binance App to set up all security features for free in the Security Center.
Safety Tips
- Never share your trading password with anyone, including people claiming to be Binance customer support
- Don't enter your trading password in public places
- Change your trading password periodically
- Don't log into Binance on unsecured devices
- If you suspect your password has been compromised, change it immediately and check for any unusual account activity