How secure are cryptocurrency exchanges?

Cryptocurrency exchanges vary in terms of security. Many exchanges use two-factor authentication and cold storage for user funds. Some exchanges also offer secure wallets, insurance against theft, and compliance with anti-money laundering laws and regulations. It is important to research an exchange before you trust it with your funds, including reviewing its security practices and review any available news about the exchange’s safety record. If you are risk averse, you may want to consider using a secure wallet and trading platform instead of an exchange.