Crypto Exchange Security Guide: Protect Your Assets
By Itai Varochik | Updated February 18, 2026 | 3 min read
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Understanding exchange risks
Crypto exchanges face hacking, phishing, insider threats, and regulatory risks. Over $3B was stolen from exchanges in 2024 alone. Understanding these risks is the first step to protecting your assets.
Security features to look for
Essential: 2FA (hardware key preferred), cold storage (95%+ of funds), insurance funds, proof of reserves, withdrawal whitelisting, anti-phishing codes, and SOC 2 certification.
Personal security best practices
Use hardware 2FA (Yubikey), unique strong passwords per exchange, withdrawal address whitelisting, never share API keys with full permissions. Use a dedicated email for crypto accounts.
When to move to self-custody
Consider hardware wallets (Ledger, Trezor) for holdings over $10K. Keep only actively traded funds on exchanges. Use multisig for large amounts.
Frequently Asked Questions
Are crypto exchanges safe?
Regulated exchanges like Coinbase and Kraken have strong security records, but no exchange is 100% risk-free. Use security features and limit exchange exposure.
Should I use a hardware wallet?
Yes, for long-term holdings. Hardware wallets provide the highest security for crypto storage.