What security measures should I look for in a crypto exchange?
When choosing a crypto exchange, prioritize these security features: two-factor authentication (2FA) to protect your login, cold storage where exchanges keep most customer funds offline away from hackers, and insurance policies covering digital assets. Look for exchanges with regulatory compliance, transparent security audits, and a strong track record. Check if they offer withdrawal whitelisting to prevent unauthorized transfers. Verify they use industry-standard encryption for sensitive data. Research their history—established exchanges like Kraken and Coinbase have demonstrated security practices. Never enable margin trading features you don't understand. Additionally, consider keeping most holdings in personal wallets rather than exchange accounts, using only exchanges for active trading.
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