What Is Proof of Reserves? How to Check an Exchange Actually Holds Your Crypto

Proof of reserves is a cryptographic report that shows a crypto exchange holds the assets it claims to hold for customers. The exchange publishes a snapshot of its wallets and a Merkle tree of user balances, so anyone can verify their own account is included and the totals add up. It proves assets exist. It does not prove the exchange has no hidden debts. That second sentence is the part most people skip.