Security of centralized exchanges manage large volumes of crypto assets and must implement robust security measures to protect user funds. Key practices include cold wallet storage, encryption, multi-signature wallets, DDoS protection, and two-factor authentication (2FA). These platforms are vulnerable to hacking due to their custodial nature, so regulatory compliance and regular audits are critical. While offering convenience and liquidity, users must trust the exchange with their assets. Strong security protocols and transparency help build trust, prevent breaches, and ensure reliable trading environments in centralized crypto exchanges.
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