How secure are my funds when stored on an exchange?

The security of your funds when stored on an exchange depends on the specific exchange in question. Generally, exchanges are required to have customer funds stored in secure, segregated accounts, and these funds should be protected by multiple layers of proactive security measures taken by the exchange. However, exchanges can still be vulnerable to hacker attacks, so it’s important to research which exchanges have a good track record of preventing cyber attacks against their systems. It’s also wise to use an exchange with insurance to help cover any losses if the worst should happen. Finally, you should always choose strong passwords and enable two-factor authentication (2FA) on your accounts.