Security of centralized exchanges involves protecting user data, funds, and infrastructure against hacks, fraud, and internal breaches. Measures include two-factor authentication, cold wallet storage, encryption, and regular audits. Reputable exchanges implement KYC/AML protocols, DDoS protection, and monitoring systems to detect suspicious activity. Despite high liquidity and ease of use, centralized exchanges are common targets due to custody of user funds. Ensuring top-tier security is critical to user trust and regulatory compliance. Continuous upgrades, employee training, and partnerships with security firms help mitigate risks.