Every crypto exchange platform definitely has its advantages and disadvantages, it applies to all exchanges including the Binance platform, if Binance's concept of a decentralized digital identity or DID is dubious to use like you said.
But the company is in control of the data though its encoded with cryptography, the DID platforms are still centralized and could be penetrated one way or another since users will have to show their private keys to prove ownership before gaining access to Binance. What do you think?
Isn't it to overcome your doubts and in terms of using digital identity on Binance for more security, shouldn't you do the method below.
Notes:
*For the security of your own account, we strongly recommend that you enable two-factor authentication (2FA). Binance supports Google and SMS 2FA.
*Before you start P2P trading, you must first complete Identity Verification and 2FA authentication.
I think it's safer if you do all that.