How Do Cryptocurrency Exchanges Secure User Assets, And What Security Practices Should Users Follow?

How Cryptocurrency Exchanges Secure User Assets

Cryptocurrency exchanges are in a high-risk cyber environment. Exchanges are high-value targets for cyber attackers due to the value stored, public nature of operations, and non-reversible nature of blockchain transactions. Once digital assets are transferred to an unauthorized wallet, it is extremely difficult to recover. To lower such risks, reliable exchanges have instituted multi-layered security features that combine technological innovation, operating discipline, and regulatory regimes.