Is there a risk in connecting the wallet to decentralized exchanges?

yhiaali3

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Quote from: khaled0111 on July 26, 2020, 03:33:12 PM

Unlocking your binance's wallet using the keystore option is not recommended since you will have to trust them.
If you don't have a hardware wallet then the second best option to safely unlocking your wallet (without having to trust them) is to use a wallet software which supports the WalletConnect protocol such as Trust Wallet, Atomic Wallet, Math Wallet...
This option will allow you to connect to your account and trade without having to expose your private keys. Kinda similar to how MetaMask works.

Thank you, my brother @khaled0111 , although this process was a bit of a risk but I tried it on Atomic Wallet with a few Coins and the experience was successful and I think that Binance Dex is safe they have created a Key store I enter through it and my coins safely so far.
As for the Trust wallet or Atomic Walt mobile application, you can enter through it without putting the seed, but its problem is that you must keep the application open and you cannot work on the mobile in the meantime and this is a bit annoying.

khaled0111

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Unlocking your binance's wallet using the keystore option is not recommended since you will have to trust them.
If you don't have a hardware wallet then the second best option to safely unlocking your wallet (without having to trust them) is to use a wallet software which supports the WalletConnect protocol such as Trust Wallet, Atomic Wallet, Math Wallet...
This option will allow you to connect to your account and trade without having to expose your private keys. Kinda similar to how MetaMask works.

yhiaali3

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Quote from: pooya87 on July 23, 2020, 01:06:49 AM

binance DEX is not a decentralized exchange.
in a network whenever there is a centralized authority that is above all other network participants, controls the network (binance chain), controls who can or can't participate, takes fees,... there are all signs of centralization.
the fact is the main purpose of binance DEX has been for them to sell more of the coin that they print out of thin air and make millions (the coin called BNB).
https://cointelegraph.com/news/binance-dex-will-geoblock-users-from-29-countries-including-the-us

Although binance DEX in theory is a decentralized exchanges, I agree with you that Binance in general is becoming more centralized and trying to control everything by acquiring the largest share in many services in the Crypto world.
Also in binance DEX, you can trade only Binance Chain tokens that are of type BEP2 and BEP8. For example, I own ERC20 tokens that depend on the Ethereum Blockchain, but I cannot trade them on binance DEX even though I am connected via the wallet and these tokens are in the wallet.
In addition to all this now comes the news that you put in the link that Binance DEX will block 29 country from accessing the Binance website https://www.binance.org/. Indeed, these things are disgusting and offend the open and decentralized world of Crypto.

libert19

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Quote from: yhiaali3 on July 23, 2020, 01:04:10 AM

Quote from: libert19 on July 23, 2020, 12:01:04 AM

I tried binance dex but didn't quite get a hang of it
The seed it asks is of binance dex only right and not of your own wallet so I assume it should be safe.

Yes, it is true that you can create a new wallet or use an old wallet created in Binance Dex. In this case, you will not be asked for the seed, but if you want to trade directly from your wallet like a Trust wallet or Atomic wallet, Binance will request the seed for this wallet .Anyway, I tried it, put the seed, and trade in Binance Dex safely and without any wallet problems.

I tried it with coinomi a while back, it didn't ask for seed just asked me to connect with wallet (hoping it doesn't take seed this way). I don't find writing seed anywhere online safe.

pooya87

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binance DEX is not a decentralized exchange.
in a network whenever there is a centralized authority that is above all other network participants, controls the network (binance chain), controls who can or can't participate, takes fees,... there are all signs of centralization.
the fact is the main purpose of binance DEX has been for them to sell more of the coin that they print out of thin air and make millions (the coin called BNB).
https://cointelegraph.com/news/binance-dex-will-geoblock-users-from-29-countries-including-the-us

yhiaali3

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Quote from: libert19 on July 23, 2020, 12:01:04 AM

I tried binance dex but didn't quite get a hang of it
The seed it asks is of binance dex only right and not of your own wallet so I assume it should be safe.

Yes, it is true that you can create a new wallet or use an old wallet created in Binance Dex. In this case, you will not be asked for the seed, but if you want to trade directly from your wallet like a Trust wallet or Atomic wallet, Binance will request the seed for this wallet .Anyway, I tried it, put the seed, and trade in Binance Dex safely and without any wallet problems.

libert19

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I tried binance dex but didn't quite get a hang of it
The seed it asks is of binance dex only right and not of your own wallet so I assume it should be safe.

Ulven

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Quote from: Lucius on June 25, 2020, 06:05:09 AM

Quote from: yhiaali3 on June 22, 2020, 04:01:43 AM

when I do the connection asks me to enter the wallet seed and then create a keystore file and keep it on my hard drive while protecting it with a password. Then I connect to DEX via keystore file.

Binance DEX is asking seed from your current desktop wallet as a prerequisite to use their service? Well this makes no sense, it is a well known fact that a seed or private key is kept as something that is high risk information and it should be not entered anywhere online. Never do something like that, no matter who asks you to do it - others have given you good advice on how to keep the risk to a minimum, and if you want to raise the level of security to the next level, consider investing in a hardware wallet.

Yes, the hardware wallet is the best choice to protect icons from theft, keeping private keys on connected devices is risky.
I also think linking the wallet to the platform is not safe so it is preferable to create a new wallet to avoid the risks.

Lucius

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Quote from: yhiaali3 on June 22, 2020, 04:01:43 AM

when I do the connection asks me to enter the wallet seed and then create a keystore file and keep it on my hard drive while protecting it with a password. Then I connect to DEX via keystore file.

Binance DEX is asking seed from your current desktop wallet as a prerequisite to use their service? Well this makes no sense, it is a well known fact that a seed or private key is kept as something that is high risk information and it should be not entered anywhere online. Never do something like that, no matter who asks you to do it - others have given you good advice on how to keep the risk to a minimum, and if you want to raise the level of security to the next level, consider investing in a hardware wallet.

Pmalek

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I wouldn't do it. I would do what some other users have already suggested. Just create a brand new wallet, move the coins you want to trade to the new wallet, and connect that one to the DEX. If you owned a Ledger hardware wallet you wouldn't have to worry and could simply connect it wherever you want without the risk to expose your private keys.

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Quote from: yhiaali3 on June 22, 2020, 04:01:43 AM

Now I want to trade via a decentralized exchange like Binance DEX when I do the connection asks me to enter the wallet seed and then create a keystore file and keep it on my hard drive while protecting it with a password. Then I connect to DEX via keystore file.

So when you would do that the password becomes everything keeping your coins safe and someone stealing them. Of course I dont suspect Binance to steal your coins trying to bruteforce it, they are reputed and will not be trying to your coins for their profit. But there is possibilities of how they are keeping the keystore file and if that data ever gets in wrong hands, then the password becomes the only thing keeping your coins safe.

Its better to use a hardware wallet than creating a new wallet to store the coins that you wish to exchange IMO.

sunsilk

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Quote from: Henri Cartier on June 24, 2020, 06:48:25 AM

There are many decentralized exchanges like Idex

I have never used Binance DEX but I can remember the first time that I did my trade through a DEX before but turned into a semi-DEX and that's the exchange that I'm saying, IDEX.

I've made another wallet and transferred the coin there so that my main wallet will be safe and I don't have to think of worries at all. If you doubt connecting your main wallet to any dex like Binance DEX, just use and create another wallet for that specific token you will be sending and trading.

Clegive8V

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Binance is a popular platform and therefore they will not close your account so there is no difference between using the basic platform or DAX.
If you have some money, you can try using hardware wallets.
The worst problems that may occur are closing your account and allowing you to withdraw your money.

Henri Cartier

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Yes, there would be a risk. If you are trading on the decentralized exchange then why do you need to link your wallet to the exchange instead you keep it on the centralized exchange?

There are many decentralized exchanges like Idex, Coinswitch(exchange aggregator), Uniswap, Kyebrswap, Bancor, etc. A decentralized exchange will be a non-custodial exchange that will not have any control over the user's asset. You can directly trade on these exchanges without storing any assets with them. You will have complete control over your wallet and the keys.

OlaniyiBabs

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To be on a saver side, why dont you create a new wallet in binance dex like what the first person that commented said and move your coin in there instead of connecting your wallet

Husna QA

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Quote from: apoh6Shah on June 22, 2020, 09:49:07 AM

Binance DEX is not completely decentralized and it is better for you to use Binance as it allows you to trade safely without proof of identity with the possibility of withdrawing less than 2 Bitcoin per day or use VPN if you are from banned country. -snip-

Using a VPN can also be risky, mainly if you use the free version. There is a high risk of personal data leakage when used for sensitive activities such as banking or trading transactions. I think the use of a VPN to avoid the ban is undoubtedly a violation of the prohibition of transactions from certain countries in Binance.

yhiaali3

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Quote from: joniboini on June 22, 2020, 06:17:41 AM

So did you do it then? I personally will use a dedicated HW and avoid exposing any seed/key. That being said, you can also use Trust Wallet which has integrated Binance DEX supports. Create new wallet there, move your funds and you can exchange your tokens from your phone.

Yes, I also do not feel safe by placing the seed of my wallet in any decentralized exchange, even if the trust was on me like Binance, it seems that it is better as one of the members said before creating a new wallet and transferring some coins to it or as you say to use a new Trust Wallet which has integrated Binance DEX supports and move some of my funds and exchange there. I think these options are better and safer.

apoh6Shah

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Binance DEX is not completely decentralized and it is better for you to use Binance as it allows you to trade safely without proof of identity with the possibility of withdrawing less than 2 Bitcoin per day or use VPN if you are from banned country.

Create a new wallet using trust wallet, it is reliable and open source https://trustwallet.com/blog/trade-on-binance-dex-with-trust-wallet/ https://academy.binance.com/tutorials/binance-dex-accessing-your-wallet

joniboini

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So did you do it then? I personally will use a dedicated HW and avoid exposing any seed/key. That being said, you can also use Trust Wallet which has integrated Binance DEX supports. Create new wallet there, move your funds and you can exchange your tokens from your phone.

yhiaali3

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Quote from: Husna QA on June 22, 2020, 05:22:47 AM

If you doubt it, why don't you use the Create New Wallet option on Binance DEX? Then try to transfer some of the funds from your current wallet to the wallet in the Binance DEX.
And I think what is meant by the Keystore file + password listed in the unlock wallet option is the Keystore and password that was previously created in the Binance DEX when creating a new wallet.

Yes I think this is a good advice to create a new wallet, convert some coins to the new wallet and trade more safely.
As for the keystore file when you enter the wallet seed, Binance Dex converts this seed into a keystore file and asks you to encrypt it with a strong password to use to enter the exchange.

Topic: Is there a risk in connecting the wallet to decentralized exchanges? (Read 373 times)