Are exchange wallets safe?

Are Exchange Wallets Safe?

Exchange wallets are convenient but you are trusting the exchange with your keys. Exchanges have been hacked in the past, and some have failed. Reputable exchanges use cold storage for most funds and 2FA for accounts, but risk remains. Use exchange wallets for active trading and small to medium amounts. For large or long-term holdings, withdraw to your own hardware or non-custodial wallet. Enable 2FA and use a strong password. Do not leave more on an exchange than you can afford to lose.