What happens if exchange is hacked?

What Happens If Exchange Is Hacked?

If an exchange is hacked, the attackers may steal crypto from the exchange's hot wallets. Your balance on the exchange could be affected. Some exchanges have insurance or a fund to cover losses, but there is no guarantee you will get everything back. To reduce risk, do not keep large amounts on any exchange. Withdraw to your own wallet for long-term or large holdings. Use exchanges that have strong security (cold storage, 2FA requirement) and a good track record. Diversify across more than one platform if you must hold on exchanges.