Topic: Do you think DEX is safer? Here is why I don't - page 2. (Read 245 times)
Your wallet connected with DEX via smart contacts some exchanges trick the users by getting the access for the contract forever so their wallet will be connected with the exchange forever so it is very important to choose the right DEX and if you're not having intensive knowledge then just better go with centralized exchange but you have to compromise your privacy.
3. If you intend to keep tokens for a long time it's safer to stay away from dex, better to send the tokens to cex exchange, your wallet will be safer this way.
Why is that so? You hold your tokens on your wallet not on dex cause you just simply interacting with the dex to use it. With regards to safety. Non custodial wallet is still the best to store your tokens. Cex also might be compromise as it is centralized but make surr you only using best one out there like Binance.
There are pros and cons when you use DEX or CEX.
On CEX, as a user, you don't own your private key for your wallet that put your capital under risk of scam exit, hack, exchange seize, shutdown, whatever. In general, without key, you won't be able to control your coin.
On DEX, you own your private key and sometimes, you will have to approve access to your key for swap, trading, etc. When you done, you should revoke such access approval, with tools such as
However, for people who are bad at security for their devices, passwords, wallets, etc. Using DEX means some risk, even more than on CEX. Because if they lose such information, there is no second, third protection layer for them like on CEX. So their coin will be more easily be stolen than on CEX in such cases.
On CEX, as a user, you don't own your private key for your wallet that put your capital under risk of scam exit, hack, exchange seize, shutdown, whatever. In general, without key, you won't be able to control your coin.
On DEX, you own your private key and sometimes, you will have to approve access to your key for swap, trading, etc. When you done, you should revoke such access approval, with tools such as
- https://app.unrekt.net/
- If you receive strange tokens from strange addresses, don't touch them. Just to be safe
However, for people who are bad at security for their devices, passwords, wallets, etc. Using DEX means some risk, even more than on CEX. Because if they lose such information, there is no second, third protection layer for them like on CEX. So their coin will be more easily be stolen than on CEX in such cases.
Your wallet being "connected" to the DEX doesn't mean that they can just steal your funds through an exploit or through a bad actor. There's a reason why every time you make a swap, you need to approve the transaction using MetaMask.
Even if I trust the decentralized exchange, I wouldn't connect my main wallet to it. Instead, create a new wallet, connect it to the DEX and send the tokens you want to trade to that wallet.
In this way, you only risk the tokens you want to trade, not all the tokens you have in your wallet. This would be same as using a CEX, where you risk the tokens you want trade.
In this way, you only risk the tokens you want to trade, not all the tokens you have in your wallet. This would be same as using a CEX, where you risk the tokens you want trade.
With DEX you can make a big mistake like buying a Copy of famous token! There Is Always a disclaimer that request clearly to check address before make a transaction.
Very similar issue Is related buy a scam coin.
This was very common with waves, I have also described with a blog post here https://www.publish0x.com/bitbollo-cryptocurrencies-blog/scam-tokens-and-scripts-on-waves-dex-xvrldvj
Sometimes we have also on CEX but its a smaller percentage... CEX have a long list of requirements before adding a new Coin.
Very similar issue Is related buy a scam coin.
This was very common with waves, I have also described with a blog post here https://www.publish0x.com/bitbollo-cryptocurrencies-blog/scam-tokens-and-scripts-on-waves-dex-xvrldvj
Sometimes we have also on CEX but its a smaller percentage... CEX have a long list of requirements before adding a new Coin.
Make sure you know what you are doing when using a DEX as you might lose your coins.
Actually, I was a victim of phishing before, I connected my wallet to a phishing site and I lost some money, that was a lesson learned and I'm glad I'm not using it anymore as most of my trades now are in CEX, particularly in Binance.
There's always a risk, but knowing the things like phishing or fake website, you'll be able to prepare how to avoid getting hacked.
So I were to choose, I'll go with CEX.
Actually, I was a victim of phishing before, I connected my wallet to a phishing site and I lost some money, that was a lesson learned and I'm glad I'm not using it anymore as most of my trades now are in CEX, particularly in Binance.
There's always a risk, but knowing the things like phishing or fake website, you'll be able to prepare how to avoid getting hacked.
So I were to choose, I'll go with CEX.
There are many fake exchange that you may find difficult to distinguish (phishing) where it can put your funds at risk. Honestly if you are used to using dex exchange then you have to make sure your wallet connection must be disconnected with the exchange (not just 1 time, but do 2 or 3 checks). That will make you safer in my opinion.
Also keeping your funds on any exchange in large is totally discouraged because of the risks. Obviously you should consider a secure wallet to store your potential coins/ tokens in the long term and you are not advised to keep them on an exchange.
Also keeping your funds on any exchange in large is totally discouraged because of the risks. Obviously you should consider a secure wallet to store your potential coins/ tokens in the long term and you are not advised to keep them on an exchange.
Dex are only dangerous if you connect your wallet to a fake Dex or new Dex that isn't well known, to me dex makes things a whole lot easier for buying tokens.
I connected my wallet (metamask) to a few dex platforms to buy and sell some tokens and after every successful transaction I always disconnect but yesterday I decided to check the security option and I found a dex still connected.
I'm starting to have this feeling that
1. Dex aren't safer than cex because with cex you only need to send out your token to the cex address, no connection to the platform which I still believe it's easier to lose your funds this way.
2. There can easily be some back code or hack in future that can bypass and steal coins after several connections to trusted dex exchanges before.
3. If you intend to keep tokens for a long time it's safer to stay away from dex, better to send the tokens to cex exchange, your wallet will be safer this way.
I'm nothing saying it's a must to follow my way, these are my thoughts this day, you are free to do anything you like with your assets.
I'm starting to have this feeling that
1. Dex aren't safer than cex because with cex you only need to send out your token to the cex address, no connection to the platform which I still believe it's easier to lose your funds this way.
2. There can easily be some back code or hack in future that can bypass and steal coins after several connections to trusted dex exchanges before.
3. If you intend to keep tokens for a long time it's safer to stay away from dex, better to send the tokens to cex exchange, your wallet will be safer this way.
I'm nothing saying it's a must to follow my way, these are my thoughts this day, you are free to do anything you like with your assets.
Jump to: