What security measures should a crypto exchange have to protect my funds?

A reputable crypto exchange should implement multiple security layers to protect your funds. Look for exchanges with cold storage (keeping 95%+ of assets offline), two-factor authentication (2FA), and encryption protocols. They should carry insurance coverage for potential hacks and undergo regular security audits by third-party firms. Verify they comply with regulatory standards in their jurisdiction and maintain transparent reserve proofs. Additionally, exchanges should offer withdrawal whitelisting, IP address restrictions, and API key management. Major exchanges like Coinbase and Kraken typically provide these protections. However, no exchange is 100% hack-proof, so consider storing larger amounts in personal hardware wallets for maximum control and security.