Topic: Teaching the use of decentralized exchanges (Read 248 times)

Are you sure you're going to teach about decentralized exchanges? AFAIK you hold your keys there because you are going to transact with your wallet, and to do that, you need to connect it somehow to provide the trading connection with that exchange. So technically, you are still holding your coins before you send them to some wallet that you do not control.

Or have you mistyped your grammar that self-custody is the key and decentralized exchanges are the solution to avoid the FTX problem?

Decentralized exchanges are more connected to altcoins, not Bitcoin. They work with smart contracts on other blockchains, not on Bitcoin blockchain. This topic belongs to Altcoin Discussion or Trading Discussion, not Bitcoin Discussion.

When you use decentralized exchanges, you are favorite to trade than invest. Trading is not good even you do it on centralized exchanges with lower trading fess. On decentralized exchanges, trading fees are higher because each trade will be charged fees for on chain transactions, slippage from developer teams.

Not all decentralized exchanges, dApps are safe to connect your wallets to. Safest, don't use only one wallet that you store all your altcoins in it for trading on decentralized exchanges. If your wallet is exploited, you'll lose all your altcoins.

Use a Smart Contract Allowance Checker https://app.unrekt.net/ to Smart Contract Allowance Checker to revoke all the addresses that can spend your tokens

Why should one HODL Bitcoin in a decentralized exchange? An exchange is for exchanging Bitcoin to whatever, and vice-versa. If you have no plan of exchanging your Bitcoin, then it has no business in an exchange. If you want to self-custody, then keep your Bitcoin in a wallet that you alone have access and has the private keys.

And I think this is to be taught along with the very basics of Bitcoin. Self-custody, after all, is a fundamental principle of Bitcoin.

The biggest problem this field faces is the absence of real alternatives from decentralized platforms that it can use in a way that enables it to completely abandon centralized systems. A culture of privacy and ways to preserve it must be spread.

Just advocate the logical term "not your keys, not your coins". This will encompass the idea that people to have an idea that if there are no private keys that are given to them by that wallet or exchange then it only means that they don't hold it in actuality.
And by the time that something wrong happens to the exchanges, it's very likely that their funds kept there will also be affected and much worse, if the exchange got hacked.

your actually learning. fair play. finally
sending you merit with my standard 'i dont give a crap about merit' policy
amount. simply because you showed willingness to learn and have an unbiased thought about a thing you have been previously over promoting

also to add
if doing multiple trades with such strangers, even if their actions are not ominous. just the pure volume of value or volume of trades can trigger you or them to be doing a business of money transmission. which can end up having your personal accounts froze if you are not set up to be a money transmitter business with a business bank account. but acting like one on your personal bank account

dex/de-fi does not solve the problems that the decentralised 'local bitcoins' services had several years ago in regards to multiple "stranger" wire transfers.. where the end result is users got too popular/greedy, done just that too many trades* above a threshold where they had to set up as a licenced exchange service(asking for KYC) or stop doing swaps

dex/de-fi still will run into those same problems . although most users are in their first few weeks./months use of their bank account under dex/de-fi activities, to not YET meet those thresholds YET

*subtly hinting the work-around(dont trade too often EG day trading multiple wires a day) - (though less subtle by needing the asterisk hint)

We do usually get our focused on using up decentralized platforms and services if the time comes where there are some huge centralized platform issues in regarding hacks and other negative events which it makes

people do being mindful about that decentralized aspect but on the time where the fire settles in or down then this is where people do forget about these things and would start on trusting centralized
services once again.

We cant just deny and avoid not to see on whats their main differences.We know that CEX could really be having that easy access in relation with fiat-crypto or crypto-fiat transactions
which cant be possible on DEX and this is where people do really see it and this is why preference is really changed up.

I would say learning about the keeping your keys safe is a core course in the academic field of bitcoin. In fact it is one of the most important lesson that beginners must be exposed to because skipping it would definitely lead to loss of funds. After they have learnt how to create a self-custody wallet, the next important topic should be how to record the private keys and keep them safe. Nobody should be introduced to bitcoin without a comprehensive lesson on self-custody.   
 
There is no necessary risk involved in using decentralized exchanges, what one needs is just caution and basic security/privacy skills. The only challenge is your ability to keep your keys safe to avoid unauthorized access and loss. You cannot compare the risked involved in using centralized exchanges with that of decentralized platforms. Using centralized platforms can lead to loss of funds, stealing of identity, hacking, loss of privacy and even government control of ones finance. 

Most people lack the capability to properly take care of their coins. Also they were taught by the banks for so many years to keep their money in others' hands, they can't think it can be done better (plus they don't understand that unlike in the case of EU banks, if a CEX falls nobody will reimburse them).
And most people are too cheap to buy a hardware wallet.
I will add that there are also probably a very big number of day traders that can have a chance to earn only if they do keep money there.

While I do agree that people should get their money into their own custody, it's not an easy task and I don't expect it to happen fast, no matter how many MtGox and FTX happen.


The risks are preached mostly by the people who didn't use DEX.
I think that there's a learning curve, I think that people need to be taught, but if you start with "despite the risks" you've already lost them.


I think that the benefits of self custody need to be said a lot more, but also people should become aware that if they are not tech savvy, self custody probably means hardware wallet.
On this topic I'd say that the hardware wallets getting cheaper would probably help.

Most people don't see the risk of storing their coins in an exchange wallet.
Most people disregard the possibility of losing control of their money if there is something will happen to the exchanges they used.
Panic has been growing after the FTX issue come out and people are withdrawing their funds from exchanges.

What happened to FTX gives a lesson to those holders who still using exchanges wallet. And you are right OP, lack of knowledge is one reason why people had lose their money. Therefore, it is an urge to have a huge understanding and invest time learning about the crypto market.

Decentralized exchanges have improved usability and user experience, becoming a good option for investors in the crypto space.

THE LATEST NEWS:

https://shrinke.me/Crypto-Latest-news

You are messing things. How would you like to hold funds in a decentralized exchange? In any case, I don't believe it's possible. You must connect with a decentralized exchange to trade from your non-custodial wallet. This means you're exchanging funds from your own wallet. It does not imply that you have funds in a decentralized wallet. Always keep your funds in a hardware wallet or a non-custodial wallet. Don't use anything else to keep your funds.

If you can't be responsible enough to hold custody over your own bitcoin, then don't buy bitcoin in the first place. Bitcoins are meant to be held by the individuals that purchase them, not by third parties.

The only downside with DEX is that, provided you're exchanging fiat in an electronic fashion (credit, debit cards, bank accounts, financial institutions like Revolut, Paypal etc.) you're sending or/and receiving money with people who are complete strangers to you, and who might be breaking the law. Therefore, there's a chance you get into some troubles. On the other hand, sending back and fourth money to a billion worth company is unlikely to bring suspicion.

Not your Key not your Fund...
Moving your coins to exchanges that claims to be decentralized why they still require you to connect your wallet and their privacy policy said the other wise. If the exchange is purely Decentralized then you are in full control of your wallet and as such your fund protection is in your hands.. I believe all wallet gives users warning concerning risk about phrase exposure and how to secure them. As an individual one thing we should think of is to protect our phrase in every means necessary more than we even protect our bank cards.

Your funds shouldn't be held long term on any exchange. The clue is in the name. They are not called wallets; they are called exchanges. If you are not actively exchanging your coins, then your coins should be in a proper wallet in which you and you alone control the private keys, such as Core, Electrum, or a good hardware wallet.

Having said that, we should absolutely encourage the use of DEXs over CEXs, since they bring huge benefits in terms of both privacy and security of both your coins and your data.

What risk are you referring to here? A decentralized exchange used properly has always been safer than a centralized exchange, but given the events of the last few months with various CEXs going bankrupt and outright scamming their users, then a good DEX is now a significantly safer choice than any CEX.

Self-custody means having the wallet installed and the owners getting the private keys/ seed. Not necessarily on DEX. But it's true most of the self-custody wallets can connect to the dex or swap platforms.

I think it's advisable for someone in crypto to learn to use the DEX so that they can still have custody of their coins while trading. So far the liquidity still is an issue on DEX while, the experience on CEX is much better. In the end, the user can chose which is what he likes.

What risk is involved in storing your funds on Decentralized Exchanges?  The only risk is that you do not secure your Seed Phrase.  You will not get your Coins frozen and scammed out of and you will not have your funds under constant risk of hacks and bankruptcies.

I strongly recommend preaching the use of Decentralized Exchanges and self custody.  You make your assets as safe as you want instead of relying on a stranger.  Do you not like being your own boss?

-
Regards,
PrivacyG

OP don't get it twisted, self custody means you're in possession of the keys to your wallet and not the exchange and this is commonly attributed to using a decentralized exchange in achieving this, while using a decentralized exchange has less risk compared to centralized exchanges because by now you've got your keys in your hands but how you handle the safety now depends on you for it safety.

I came across a topic talking about the lost of funds while self custody because of the lack of primary knowledge of holding in decentralized exchanges.
I think while teaching the use of Bitcoin, the knowledge of self custody and how to do it should be more emphasized because I think due to the recent protest against centralized exchanges, most people out of panic have moved their funds from exchanges to decentralized exchanges and might loss that pass phrase and awhile lot of threats to their funds.
~Do you think emphases should be more on teaching tye use of self custody?
~Do you think it is advisable to use preach the use of decentralized exchanges despite all the risk involved?