Safest Crypto Exchanges in 2025

The safest crypto exchanges in 2025 combine robust security measures with regulatory compliance and user protection policies. In this article, I’ll examine what makes the most secure crypto exchange trustworthy and provide detailed reviews of leading platforms in 2025  known for their safety.

You’ll learn about the security infrastructure, regulatory status, and user protection features of the safest crypto exchanges like Kraken, Gemini, Coinbase, and Binance US. I’ll also share practical tips for keeping your crypto safe regardless of which exchange you choose.

Understanding what makes an exchange secure has never been more important. With digital assets becoming mainstream, the difference between secure and vulnerable platforms can determine whether your investments remain safe. This guide will help you identify the most important security features to look for, compare leading exchanges, and implement personal security practices to protect your crypto investments in today’s landscape. We’ll look at key components for a secure and safe crypto exchange such as the provision of effective 2FA logins for users.

Most Secure Crypto Exchanges Rated and Ranked

One crucial attribute in the mix when it comes to exchange safety for users is the inclusion of a robust and effective 2FA login system. Based on this key component, here’s a top list of our best-regarded secure and safe crypto exchanges based on their 2FA systems:

The Most Secure and Trustworthy Crypto Exchanges

Here’s a comparison table of the safest crypto exchanges in 2025.

Detailed Reviews of the Safest Places to Buy Crypto

I’ve researched the safest crypto exchanges in 2025, and I want to share with you my following four top choices. Let’s dive in.

Kraken

Kraken stands out among the safest crypto exchanges with a solid reputation in the crypto exchange market. This platform balances security with a diverse range of trading options suitable for different experience levels.

The exchange provides access to over 200 cryptocurrencies and 700+ trading pairs. You can engage in spot trading for straightforward buys and sells, margin trading with up to 5x leverage for amplified positions, and derivatives trading with up to 50x leverage for experienced traders. The platform also includes a dark pool feature allowing large trades to execute without impacting the public market price.

Security is a central focus for Kraken, which maintains an impressive track record with no major hacking incidents to date. The majority of user funds are stored in offline cold storage systems, minimizing exposure to online threats. This is what makes it one of the safest crypto exchanges in 2025.

Account protection is multi-layered, featuring several notable security options:

• Standard and Step-up 2FA using authenticator apps, passkeys, or hardware security keys
• The Master Key system that adds protection for critical account actions like password resets
• Global Settings Lock that prevents unauthorized changes to account settings
• Withdrawal address whitelisting to restrict transfers to pre-approved destinations

All of these protection measures make Kraken one of the safest crypto exchanges. It maintains insurance coverage for digital assets held on the platform, but unlike traditional financial institutions, it doesn’t offer FDIC insurance. This reflects the current regulatory environment for crypto exchanges rather than a specific limitation of Kraken.

The exchange operates globally in over 190 countries, making it accessible to users worldwide. For those new to cryptocurrency, Kraken provides educational resources including tutorials tailored to both beginners and advanced traders. So not only is it among the safest crypto exchanges, but it’s also suitable for anyone interested in crypto, regardless of their experience level.

Kraken’s regulatory approach is generally considered proactive. The exchange works to maintain compliance across various jurisdictions, which adds a layer of legitimacy and user protection beyond its technical security measures.

Gemini

Gemini combines ease of use with strong security protocols, making it appealing to both newcomers and experienced crypto traders. Its strong security features push it to the top of my safest crypto exchanges list I’ve compiled here.

The platform features an intuitive interface designed to simplify cryptocurrency trading. Its clean design makes navigation straightforward while still offering advanced tools for more experienced users. The Gemini mobile app extends this accessibility, allowing you to manage your portfolio on the go.

Gemini’s security approach includes SOC 2 Type 2 certification, demonstrating its commitment to maintaining high security standards. This certification involves rigorous independent auditing of security controls and practices. The exchange requires 2FA for all accounts, supporting authentication through apps or SMS verification. All of these aspects make Gemini one of the best crypto exchanges.

The platform’s protection strategy includes several notable elements:

• Cold storage security for the majority of customer funds, keeping them offline and away from potential online threats
• Insurance coverage for digital assets stored on the platform, providing an additional safety net
• Strict regulatory compliance, operating under established financial frameworks in the US

Gemini’s user protection policies and regulatory stance contribute to it belonging on my safest crypto exchanges recommendations.

One distinctive feature is the Gemini Earn program, which allows you to generate interest on idle crypto holdings through staking or lending options. This creates passive income potential while maintaining access to your assets.

Gemini’s regulatory approach stands out in the crypto space. The exchange operates with full compliance under US regulations, which adds accountability but may result in stricter user verification requirements compared to some international exchanges. Keep in mind that those requirements protect everyone using the platform, making it one of the safest crypto exchanges in  2025.

For users prioritizing a combination of security, regulatory clarity, and ease of use, Gemini offers a balanced option that doesn’t sacrifice protection for convenience. Its transparent approach to compliance reflects a long-term strategy focused on institutional credibility alongside retail accessibility. That’s why it’s a solid choice among the safest crypto exchanges currently available.

Coinbase

Coinbase has built its reputation as one of the most accessible cryptocurrency platforms, particularly for newcomers to the crypto space.

The platform stands out with its straightforward, clean interface that simplifies the buying and selling process. This design philosophy extends throughout the user experience, making Coinbase a popular entry point for first-time crypto buyers. You can access over 150 cryptocurrencies and various fiat currency options, providing flexibility for different investment strategies.

Coinbase implements a layered security approach to protect user assets, so it’s no wonder it’s one of the safest crypto exchanges up to date. The majority of funds are kept in offline cold storage, minimizing exposure to online vulnerabilities. For the portion that remains in online “hot wallets” to facilitate daily transactions, Coinbase maintains insurance coverage against potential breaches. That insurance brings you a peace of mind – you know you’re using one of the safest crypto exchanges.

User account protection includes:

• Mandatory 2FA for all accounts through authenticator apps or SMS verification
• Biometric authentication options on mobile devices
• Device recognition to flag unusual login attempts

The safest crypto exchanges like Coinbase often implement these protection measures.

What sets Coinbase apart is its focus on user education. The platform offers learning modules that not only explain cryptocurrency concepts but also allow you to earn crypto rewards by completing lessons. This “learn and earn” approach helps newcomers gain knowledge while building their initial portfolio.

Coinbase operates with extensive regulatory compliance across major financial frameworks. While this results in thorough verification requirements, it also provides greater transparency and accountability compared to less regulated exchanges, which automatically makes it one of the safest crypto exchanges.

The platform maintains high liquidity, ensuring you can execute trades quickly without significant price slippage. This liquidity advantage becomes particularly important during volatile market periods when transaction speed can impact outcomes.

For users prioritizing ease of use, educational support, and regulatory clarity, Coinbase offers an approachable option, though its simplified interface comes with slightly higher fees than some competitors targeting more experienced traders. Despite the fees, it’s still among the safest crypto exchanges in 2025.

Binance US

Binance US provides American users with access to crypto trading while maintaining regulatory compliance specific to the US market.

The platform offers a substantial selection of cryptocurrencies alongside competitive fee structures that rank among the lowest in the industry. This cost efficiency makes it attractive for active traders looking to minimize transaction expenses. The exchange also features staking programs that let you earn passive income on eligible assets while they remain in your account.

The safest crypto exchanges take security very seriously. Security implementation at Binance US includes standard industry practices like offline cold storage for the majority of user funds and 2FA requirements for account access. The exchange has completed its SOC 2 examination, demonstrating commitment to maintaining security standards through independent verification.

User protection features include:

• Account protection through authenticator apps or SMS-based 2FA
• Address verification protocols before withdrawals
• Secure asset storage with the majority in cold wallets
• Regulatory oversight under US financial frameworks

These features should always be present when it comes to the safest crypto exchanges.

The platform includes several advanced features designed for more experienced traders, such as detailed charting tools, API access for automated trading strategies, and an Over-The-Counter desk for executing large transactions without affecting the public market.

It’s worth noting that unlike the international Binance platform, Binance US does not currently offer futures or margin trading options due to regulatory constraints in the United States. This limitation reflects the different regulatory environments rather than a technical limitation of the exchange itself. Binance US is still one of the safest crypto exchanges that’s also convenient for anyone living in the US.

For American users seeking a balance of competitive fees, reasonable asset selection, and regulatory compliance, Binance US presents a viable option with enough advanced features to satisfy both beginning and intermediate traders. Its focus on cost efficiency makes it particularly appealing for frequent traders where transaction fees can significantly impact overall performance.

What Makes a Crypto Exchange Safe?

In this section, I’ll explore what makes the safest crypto exchanges actually safe by examining five critical areas: regulations and compliance, security measures, user protection policies, customer support, and reputation.

Regulations & Compliance

Government oversight creates a foundation for exchange safety. Exchanges that register with financial authorities must meet strict standards and undergo regular audits. That’s what sets the safest crypto exchanges apart from potentially shady ones. This regulatory framework helps prevent fraud and ensures operational stability.

Look for platforms licensed in respected jurisdictions like the US, Singapore, or the EU. Each region has its own regulatory body – the Securities and Exchange Commission  and Financial Crimes Enforcement Network  in the US, the Monetary Authority of Singapore , or various national authorities under EU financial regulations.

The safest crypto exchanges always comply with Anti-Money Laundering standards and Know Your Customer protocols. These requirements might seem annoying when you’re setting up an account, but they don’t serve to invade your privacy. Instead, they protect everyone by preventing illegal activity.

The verification process typically involves submitting identification documents and sometimes proof of address. While this adds friction to the signup process, it’s a strong indicator that an exchange takes security seriously.

Regulatory clarity is another factor worth considering. Some exchanges operate in regulatory gray areas, while others actively work with lawmakers to establish clear guidelines. Those embracing regulation rather than avoiding it tend to be more reliable long-term options for your funds because that makes them the safest crypto exchanges.

Proof of reserves is becoming an industry standard for transparency. The safest crypto exchanges now regularly publish attestations from independent auditors confirming they hold 100% of customer assets. This practice gained importance after several high-profile exchange collapses where customer funds disappeared. When an exchange can prove it holds all customer deposits, it demonstrates financial accountability and reduces the risk of insolvency.

Tax compliance features also indicate a legitimate operation. The safest crypto exchanges provide transaction history reports and tools to help calculate your tax obligations. This shows the platforms expect to be around long-term and wants to help users stay compliant with tax laws.

Different jurisdictions have varying requirements for exchanges. Some regulatory frameworks are more demanding than others, so research the specific obligations in the countries where an exchange operates. Stricter regulation often means better protection for you, even if it results in some limitations on available products or services.

Security Measures

Cold storage is the gold standard for protecting your coins. The safest crypto exchanges store most customer funds (typically 90-95%) offline in hardware wallets disconnected from the internet, making them nearly impossible to hack. This approach creates an “air gap” between your assets and potential online threats. When you withdraw funds, the exchange processes the transaction through a secure protocol that minimizes exposure to internet-connected systems.

Two-factor authentication  is essential for account security, and the safest crypto exchanges always offer it. Make sure to enable 2FA on your accounts – preferably using an authenticator app rather than SMS, since phone numbers can be compromised through SIM swapping attacks. Some exchanges now support hardware security keys like YubiKey, offering even stronger protection for your login process.

Asset separation practices differ between platforms. The safest crypto exchanges maintain complete isolation between customer funds and operational capital. This structural separation ensures your deposits won’t be used for the company’s expenses or investments, preventing situations like those that led to previous exchange collapses.

Penetration testing shows an exchange’s commitment to finding vulnerabilities before hackers do. The safest crypto exchanges hire specialized security firms to attempt to breach their systems regularly, then fix any weaknesses discovered. You can ask if an exchange conducts these tests and how frequently.

Encryption standards matter for data protection. The safest crypto exchanges use industry-leading encryption for data both in transit and at rest. Your personal information and transaction details should be protected using at minimum AES-256 encryption and TLS 1.3 protocols.

Other important security features of the safest crypto exchanges include:

• Address whitelisting to prevent unauthorized withdrawals to new destinations
• Email or app confirmations for all transactions above minimum thresholds
• IP and device tracking to flag unusual login attempts from unfamiliar locations
• Withdrawal delays or locks after password changes
• Bug bounty programs that reward security researchers for finding vulnerabilities

Security architecture transparency is a positive sign. Some exchanges publish details about their security infrastructure, allowing experts to evaluate their approach. While they won’t reveal everything (which would create vulnerabilities), exchanges that share their general security philosophy demonstrate confidence in their methods.

Account activity monitoring tools let you track access to your account. The safest crypto exchanges notify you about logins, changes to settings, and transactions, giving you an early warning if something suspicious occurs. These alerts can be customized based on your preferences and risk tolerance.

User Protection Policies

Insurance coverage differs significantly between the safest crypto exchanges. Some insure only a portion of assets, while others offer full protection. Many top platforms now carry commercial insurance policies specifically designed for digital assets. These policies typically cover losses from hacking, theft, or private key compromise, but may not protect against market volatility or user errors. Check if an exchange has a recovery fund to cover losses in extreme situations where insurance might not apply.

Clear fee structures indicate transparency. Before trading, you should easily find information about trading fees, withdrawal costs, deposit charges, and any other expenses. Be wary of exchanges with hidden fees or complex pricing that’s hard to understand. Some platforms use tiered fee models based on trading volume or token holdings, which can significantly reduce your costs if you’re an active trader.

Asset listing standards reveal how carefully an exchange vets the cryptocurrencies it offers. The safest crypto exchanges conduct thorough due diligence before adding new tokens, examining the team, technology, legal compliance, and security of each project. This helps protect you from potential scams and low-quality cryptos that might disappear overnight.

Account security controls give you power over your own protection. Look for features that let you customize security settings based on your risk tolerance. These might include IP address restrictions, trading limits, withdrawal address management, and session timeout settings. The more control you have, the better you can secure your account on the safest crypto exchanges.

Privacy policies deserve careful review. Read how an exchange handles your personal information and whether it shares data with third parties. The safest crypto exchanges limit data collection to what’s necessary for legal compliance and platform functionality. They should clearly explain what information they gather, how long they store it, and your rights regarding your personal data.

Fund segregation practices protect your assets if the exchange faces financial problems. The safest crypto exchanges keep deposits separate from their company’s operational funds, preferably in dedicated custodial accounts. This separation ensures that even if the exchange experiences business difficulties, your crypto remains accessible.

Margin trading protections help prevent catastrophic losses. The safest crypto exchanges that offer leveraged trading should have automatic liquidation procedures, negative balance protection, and risk warnings to help inexperienced traders avoid excessive risk. Some platforms also provide practice accounts where you can learn without risking real money.

Transparent downtime procedures show how an exchange handles technical issues. Every platform experiences occasional maintenance or unexpected outages. What matters is how they communicate these events, whether they protect open orders during downtime, and how quickly they restore service. The safest crypto exchanges provide real-time status updates and compensate users for losses caused by system failures.

Customer Support

Response times can make a crucial difference when market conditions change rapidly. The safest crypto exchanges offer 24/7 support with response times measured in minutes rather than days. Fast support becomes especially important during market volatility when you need immediate help with transactions or account issues.

Multiple support channels give you options when you’re facing problems. The safest crypto exchanges should offer live chat for immediate assistance, email tickets for complex issues, and phone support for urgent matters. Some platforms now provide support through social media or messaging apps like Telegram as well. Having multiple ways to reach help ensures you’re never left without options during critical situations.

Language support indicates how global an exchange’s services truly are. If English isn’t your first language, check whether the platform offers support in your preferred language. The most accessible exchanges provide multilingual support teams and translate their knowledge bases into several major languages.

Educational resources show an exchange cares about user success. Quality platforms invest in creating helpful content like trading guides, cryptocurrency explanations, security tips, and market analysis. Some exchanges even offer webinars, video tutorials, and interactive courses for different experience levels.

Account recovery processes on the safest crypto exchanges should be both secure and accessible. If you lose access to your account, the exchange should have clear, documented procedures for recovery that balance security with usability. These processes typically involve identity verification steps more rigorous than the initial account setup to prevent unauthorized access.

Self-help tools can resolve many common issues without waiting for support. Useful features include comprehensive FAQs, searchable knowledge bases, troubleshooting guides, and community forums where users help each other. Trustworthy crypto exchanges make finding answers to common questions simple and intuitive.

Support quality consistency matters across all channels. Some exchanges offer excellent service through one contact method but poor assistance through others. Read reviews specifically mentioning support experiences to gauge whether quality remains high regardless of how you reach out for help.

Escalation paths should exist for unresolved issues. If frontline support can’t solve your problem, the safest crypto exchanges should have clear procedures for escalating to specialists or management. Without these escalation options, complex problems can remain unresolved, leaving you frustrated and potentially unable to access your funds.

Reputation

Operating history tells you a lot about reliability. Platforms that have survived multiple market cycles have proven their stability and ability to manage risk during both bull and bear markets and are the safest crypto exchanges. Consider how long a platform has been running and whether it handled past crypto crashes without significant issues. Newer exchanges might offer innovative features, but lack the track record that demonstrates long-term viability.

User reviews reveal common problems that might affect your experience. Check independent forums rather than testimonials on the exchange’s own site, as these provide more balanced perspectives. Pay special attention to recurring complaints about specific issues like withdrawal delays, account freezes, or poor customer service. Forums like Reddit, Trustpilot, and specialized crypto communities often contain detailed firsthand accounts from actual users.

Transparency during incidents indicates trustworthiness of the safest crypto exchanges. How an exchange handles and communicates about problems says more about its character than having no issues at all. Look for platforms that provide honest, timely updates during outages or security incidents, take responsibility for errors, and explain their remediation plans. Exchanges that try to hide problems or blame users for platform-related issues often have deeper problems with their corporate culture.

Media coverage offers additional insights into an exchange’s reputation. Financial publications, crypto news sites, and industry analysts frequently evaluate exchanges based on their performance, features, and reliability. While any single review might be biased, looking across multiple sources helps build a clearer picture of an exchange’s standing in the industry.

Leadership team backgrounds can signal legitimacy. Research the founders and executives running the exchange. Experienced professionals with verifiable histories in finance, technology, or regulatory compliance suggest the operation is built on solid foundations. Be cautious of platforms where leadership remains anonymous or has questionable past business activities.

Partnership quality reflects on an exchange’s standing. Credible crypto exchanges typically form relationships with respected financial institutions, technology companies, and auditing firms. These partnerships indicate that the exchange has undergone due diligence by organizations with reputations to protect, adding an extra layer of credibility.

Regulatory actions history reveals past problems. Check if an exchange has faced enforcement actions, fines, or if it’s been banned from operating in certain jurisdictions. While minor regulatory issues might be expected in a developing industry, serious or repeated violations suggest fundamental problems with compliance attitudes.

Community engagement shows commitment to users beyond transactions. Exchanges that actively participate in the crypto ecosystem through education initiatives, open-source contributions, or industry standards development often demonstrate a longer-term vision and commitment to the space. This engagement suggests they’re building for the future rather than seeking quick profits.

Tips to Keep Your Crypto Safe on Any Exchange

In this section, I’ll explore 10 crucial tips to keep your crypto safe on any exchange. Let’s dive in.

Enable 2FA Using an Authenticator App

Set up 2FA immediately after creating any exchange account. Don’t postpone this critical security step – many users have lost funds because they delayed enabling additional verification. Store your backup codes in a physically secure location separate from your devices. Consider using different authenticator apps for your most important accounts to create additional isolation between high-value targets. If you use a hardware security key, buy a backup and keep it in a safe place in case your primary key is lost or damaged.

Create Unique, Complex Passwords for Each Exchange

Password security is fundamental, but it’s often overlooked. Create a unique, complex password for each exchange. Don’t reuse passwords across platforms. Consider using a password manager to generate and store strong credentials. Your password should include a mix of uppercase and lowercase letters, numbers, and special characters, with a minimum of 12 characters for adequate protection.

Learn to Identify Phishing Attempts Targeting Crypto Users

Phishing attacks remain one of the most common ways crypto gets stolen. These scams typically arrive via email, social media messages, or fake websites designed to look like legitimate exchanges. Always verify URLs carefully, checking for subtle misspellings or character substitutions. Legitimate exchanges will never ask for your password or recovery phrase via email or chat. Access exchanges only through bookmarked links or by manually typing the verified URL.

Withdraw Significant Holdings to a Private Wallet

Large holdings are safer in private wallets. While exchanges have improved their security, self-custody remains the most secure option for significant amounts. Consider hardware wallets like Ledger or Trezor for cold storage of any crypto you don’t need for immediate trading. Think of exchanges as your checking account and private wallets as your savings account – keep only what you need for regular transactions on the exchange.

Use a Dedicated Email Address for Crypto Accounts

Using a dedicated email address exclusively for crypto accounts helps isolate your exchange accounts from other online services. This separation makes it harder for attackers to gain access through breaches of unrelated websites. Apply the same strong security measures to this email account as you do to your exchange accounts.

Verify Withdrawal Addresses Multiple Times Before Confirming

Double-checking withdrawal addresses can prevent irreversible errors. Triple-verify addresses before confirming any transaction because blockchain transfers cannot be reversed if sent to the wrong destination. Many exchanges now offer address books and whitelisting features that restrict withdrawals to pre-approved destinations, adding an extra verification step.

Keep Your Devices and Software Updated

Regular security audits of your own setup help identify vulnerabilities. Periodically review which devices have access to your accounts, revoke unused API keys, update recovery methods, and reassess your overall security strategy as your holdings grow. Consider creating a security calendar with quarterly reminders to perform a complete review of all your crypto exchange accounts and security settings.

Enable Address Whitelisting for Regular Destinations

Enable address whitelisting whenever available. This feature restricts withdrawals to only pre-approved addresses, adding a crucial security layer that prevents attackers from quickly draining your account even if they gain access. Most exchanges require a waiting period of 24-48 hours to add new withdrawal addresses, giving you time to detect and stop unauthorized changes.

Monitor Account Activity for Unauthorized Actions

Monitor account activity regularly for signs of unauthorized access. Set up email or mobile notifications for all account actions like logins, trades, and withdrawals. Unusual trading patterns, unrecognized devices, or login attempts from new locations should trigger immediate password changes and support tickets.

Research Exchanges Thoroughly Before Depositing Funds

Research exchanges thoroughly before depositing any funds. Check their security track record, regulatory status, and user reviews across multiple independent platforms. Even small deposits on untested exchanges can expose your personal information and email to potential compromises that might affect your accounts elsewhere.

Why Trust Us?

CryptoManiaks has established itself as a trusted voice in the cryptocurrency space since 2017. The team I’m part of combines over 25 years of collective experience in blockchain technology, cybersecurity, and financial analysis.

Each exchange review undergoes evaluation by multiple team members with diverse expertise, ensuring comprehensive assessment from different technical and practical perspectives. Our safest crypto exchanges review methodology follows a standardized framework that examines security infrastructure, regulatory compliance, user protection features, and real-world track records across all platforms.

With hundreds of published exchange reviews and security analyses, CryptoManiaks has developed deep institutional knowledge of the evolving cryptocurrency security landscape. This extensive review history enables me to identify meaningful trends and recognize truly exceptional security practices in this rapidly changing industry.

Conclusion

I’ve made my selection of the four safest crypto exchanges for  2025, but I should note that choosing the right exchange for you requires balancing security with usability and features that match your specific needs. While perfect security doesn’t exist in the digital asset space, the exchanges reviewed here represent some of the strongest options available today.

Beyond the exchange you select, your personal security practices play an equally important role in protecting your assets. The combination of a secure exchange and proper security hygiene creates layers of protection that significantly reduce your risk exposure.

As the cryptocurrency market continues to mature, I’m seeing exchanges put greater emphasis on security certifications, insurance coverage, and regulatory compliance. These developments signal a positive direction for the industry as a whole.

Remember that the crypto security landscape evolves constantly. New threats emerge alongside new protective measures. Staying informed about security best practices and periodically reassessing your exchange choices remains essential for long-term safety.

Ultimately, the safest approach combines using reputable exchanges for active trading while moving significant holdings to private wallets where you control the keys. This balanced strategy gives you both the convenience of exchange services and the security of self-custody where it matters most.

FAQ

1. 01.

   What happened with Bybit?

   

   In February 2025, Bybit suffered one of the largest security breaches in crypto history, with hackers stealing approximately 401,347 ETH—valued at around $1.5 billion at the time. The FBI later attributed the attack to North Korea’s state-backed Lazarus Group, who exploited vulnerabilities in Bybit’s cold wallet infrastructure using a combination of malware and social engineering tactics. Bybit responded by confirming that user assets remained backed 1:1 and launched a comprehensive investigation in collaboration with law enforcement agencies. In the aftermath, the exchange announced the closure of its NFT and IDO platforms to refocus on its core trading business, and partnered with Zodia Custody to strengthen institutional asset protection.

2. 02.

   Is Bybit a safe crypto exchange?

   

   While Bybit has historically implemented standard security measures such as cold storage, two-factor authentication, and periodic audits, the February 2025 hack exposed serious weaknesses in its infrastructure. The scale of the breach, combined with its prior regulatory challenges in regions like the UK, Ontario, and Japan, has intensified concerns over both compliance and operational risk. Although the exchange acted swiftly to mitigate damage, including steps to trace and recover stolen assets, the event has cast doubt on its overall security assurances. Users should approach Bybit with caution, especially in light of the elevated custodial and regulatory risks that now define its profile.

3. 03.

   Which is the safest crypto exchange?

   

   When it comes to the safest crypto exchanges, no single exchange is definitively “safest” as each has different strengths. Kraken and Gemini stand out for their strong security records and regulatory compliance. Coinbase offers the reassurance of being publicly traded with transparent operations. For the safest experience, look for exchanges with cold storage for most assets, insurance coverage, clear regulatory standing, proven security track records, and third-party security certifications like SOC 2 compliance.

4. 04.

   Can I trust crypto exchanges to hold my funds?

   

   You can trust reputable exchanges for trading purposes and short-term holdings, but not as permanent storage for significant assets. Even the most trusted crypto exchanges face risks from hackers, internal fraud, or regulatory actions. For smaller amounts used for regular trading, established exchanges with insurance and cold storage provide reasonable security. For larger holdings, transfer to a private wallet where you control the keys. Remember the crypto adage: “Not your keys, not your coins.”

5. 05.

   What is the safest way to buy Bitcoin?

   

   You can find the safest place to buy Bitcoin by looking into exchanges that combine regulation with proper storage. Start by using an exchange like Coinbase, Gemini, or Kraken that complies with financial regulations. Enable all available security features including 2FA. After purchase, transfer significant amounts to a hardware wallet like Ledger or Trezor. Keep your recovery phrase secure and offline. For regular trading amounts, consider a mobile wallet with strong security features as a middle ground.

6. 06.

   Are decentralized exchanges safer than centralized exchanges?

   

   Decentralized exchanges (DEXs) and centralized exchanges present different security tradeoffs. DEXs eliminate counterparty risk since you maintain control of your funds through smart contracts rather than depositing them with a company. However, DEXs introduce smart contract risks, require more technical knowledge, and offer fewer user protections. CEXs provide better user interfaces and support but require trusting the company with your assets. For maximum security, use DEXs with well-audited contracts or CEXs with proven security records.