Do you think DEX is safer? Here is why I don't

[MidNite36]

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.

[1714783590]

1714783590

[SafuBTC]

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.

[Falconer]

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.

[Japinat]

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.

[bitbollo]

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.

[hosseinimr93]

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.

[mk4]

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.

[tranthidung]

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

• 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.

[cryptoaddictchie]

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.

[Findingnemo]

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.

[pooya87]

I connected my wallet (metamask) to a few dex platforms to buy and sell some tokens

These aren't exactly categorized as DEX though. These are token swap platforms (you can only swap tokens not cryptocurrencies).

and after every successful transaction I always disconnect but yesterday I decided to check the security option and I found a dex still connected.

That could be seen as the implementation flaw.
You could just ask the devs to add an option to automatically disconnect although I don't think there is any security risk involved here.

I'm starting to have this feeling that
~

The security that DEX provides is that it helps you keep control over your own funds without relying on a third party. That means you are responsible for your own security whereas when you use CEX the company can steal your coins by shutting down your account for any reason they like.

[Beparanf]

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.

It depends on the credibility of exchange in both DEX and CEX. Let’s assume both exchange has a partly shady credibility, So you will need to deposit only your money on CEX address but you didn’t realized that your fund is already hostage by the CEX throughout the time your funds is in there since you don’t have the private key in an exchange wallet on the other hand you only need to snd your money right after you do transaction on exchange.

Most of the DEX rely on smart contract so if the smart contract of DEX is properly audit then you don’t need to worry since all the action in DEX is through smart contract.

[noorman0]

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.

You can freely rate CEX as more secure because it may be used more often than DEX and plus features that have made you almost no mistakes so far. People's experiences are definitely different.

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.

There are certain recognized standards for which DEX can be considered to be safe, such as open source code, audited contracts, or others.

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.

This is your most contradictory thinking, you should read the hacking history of crypto exchanges (eg MtGox) even though they are known to be the safest for most people.

[YellowSwap]

It's a lot safer to send tokens from your wallet to another wallet address either exchange or not but connecting your wallet to a platform is not, it's like revealing what your wallet holds and you can never tell what such a platform could do later.

[pakhitheboss]

Both DEX and CEX have pros and cons. If you are not comfortable in using a DEX then better to use a CEX. I have used both and have not faced any issues as I only use those  exchanges that have reputation and have been in the market for quite sometime now. If you keep your tokens on a CEX then you are no longer in control of your crypto assets but when you keep them in your wallet you are in control of them as you have access to the private key of your wallet.

[PrivacyG]

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.

Why?  Long as you do not have an infected computer, which I suppose you do not since you still have your coins in your wallet, there is not much you can fear.  Decentralized exchanges can be built from scratch, verified et cetera.  Anyway, I have a counter argument for you.  CEX's are not safer than DEX's because when you send Bitcoins to a CEX, there is a chance you will have them frozen or seized for a multitude of reasons.  With DEX's, you always have the freedom to move it back and forth between the exchange and your wallet.

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.

This is why you never do day zero updates.  You always wait at least one day before updating your DEX.  If you will, leave a small amount of Bitcoin in the wallet of your DEX and see if after the update it gets stolen or not.

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.

This makes no sense!  Why is it safer to keep your coins LONG TERM on a CEX rather than a DEX?  A CEX can always get hacked.  There are even exchanges which specify in the Terms and Conditions that if you do not move your coins or log in for a long period of time, YOUR coins will become their property.  Storing coins on a CEX long term is nuts!

A DEX is safe as long as there is no malicious update that you have installed and as long as the seed has been backed up properly.  Take Bisq for example.  What could go wrong with the coins stored on Bisq?  You either update to a malicious version, you backed up your seed improperly or you did not back your seed at all.

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Regards,
PrivacyG

[JangoUnchained]

It depends on the user, you should connect your crypto wallet to trusted sources only like pancakeswap or uni swap for example, don't go and connect the wallet to any unknown platforms that's where real problem starts from.

[hugeblack]

In the end, you connect your wallet to unknown program, if you do not trust that program, you may end up losing your money.

 - Not all platforms that claim to be decentralized, are decentralized.
 - If you give permission to sign a message to a scam DEX, you will lose your money.
 - It is best to create a wallet for each token you want to exchange for.

If you send your money to an address generated from a private key that has not and will not connect to the Internet, it is impossible for that coins/tokens to be stolen as long as you generate it correctly/randomly.

In CEXs you trust these currencies 100%, but here it is up to you to protect your money (you have the choice)

[Ryker1]

There are pros and cons when you use DEX or CEX.
^[snip]

Well this is the fact, both of them have pros and cons that are still useful to us as a trader.
CEXs are still good when it comes to trading activity and when also supported coin while DEX is good only for privacy or masking your identity.
DEX is safe? For me --it could be but there is also a CEX that is good to entrust your fund into them, so it means they have a good reputation.
However, we need to decide which one for the sake of profit, why you are in trading just to make a profit, not on privacy.

[boyptc]

Your points are actually valid and they're really an important feedback for those that are not aware of these when they use decentralized exchanges.

In the past, there's more hacking that's happening with decentralized exchanges because of contracts. And that's a fact that many funds were compromised because of that technicality.

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.

Actually, you shouldn't be keeping your funds for a long time on both. They're both not safe and shouldn't be used a storage.