Newbies use Decentralized exchanges (DEX) to store your coins

[Wiwo]

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Thanks charlse for making this a little more clearer and now I understand because all the while I thought that Dex exchanges such as uniswap and the rest requires users to connect their wallet, which in process expose the security of the wallet connected.

But from your explanations you made it clear that the coin are either sent and received fro the Dex instead connecting the wallet to their smart contract.

[Asiska02]

I made this thread to serve as a reminder to newbies not to use centralized exchanges to store their coins because I recently conducted personal research on centralized exchanges and learned about the effects of CEX, how the government regulates it, and the danger it poses, especially to newbies.

Centralized exchanges have for long not a good place to store your coins. You will only risk losing them if you depend and store your assets with them. The centralized exchange by the name is already explaining its purpose, which is to exchange your coins for fiat and not a place to store your coins. Exchanges are best knows for exchange of coin to fiat, and again known for trading. They have access to your money and KYC, you can’t get away with the KYC if you must do some more activities with them that require it but you must be sure your money isn’t left there as a saving option that you have.

[Agbe]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

[Mia Chloe]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

You have a point Agbe. Fact is storing your coins on any exchange is a risk. Infact the risk is higher in the case of decentralised exchanges compared to centralised exchanges. The reason is because in a centralised exchange , you would have to do a KYC verification and they are like giving you a guarantee for your coins based on your KYC details. However for a decentralised exchange, you are pretty much anonymous and in that case you are risking your coins in detriment of you not releasing your KYC details.
None of decentralised or centralised exchanges is 100% safe for your funds or you since for both you are either risking your KYC details or your funds.

[Sim_card]

It would be better not to have your coins stored up long term on exchanges. Be it CEX Or DEX you should keep your coins off exchanges and use only standard non custodial wallets.

You are right, anything like exchange be it centralized or decentralized should not be used to store idle funds, otherwise, you are risking your funds. Using an open source self custody wallet is the best because you control your private keys yourself and if it is a huge amount of funds, a hardware wallet is needed or cold storage wallet like Electrum on an airgapped device.

[Cryptsafe]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

You have a point Agbe. Fact is storing your coins on any exchange is a risk. Infact the risk is higher in the case of decentralised exchanges compared to centralised exchanges. The reason is because in a centralised exchange , you would have to do a KYC verification and they are like giving you a guarantee for your coins based on your KYC details. However for a decentralised exchange, you are pretty much anonymous and in that case you are risking your coins in detriment of you not releasing your KYC details.
None of decentralised or centralised exchanges is 100% safe for your funds or you since for both you are either risking your KYC details or your funds.

Your opinions and points are correct. It is not in any way advisable for one to store their their assets on a cex or Dex platform. It is not ideal because these platforms can not guarantee their own safety not to talk of your own assets  under their custody. 

Decentralised exchange is more risky than centralised because one's coin can be taken without their prior knowledge as it is that they have  information as to show their identity and claim ownership of the tokens and if it happens that they are absconding they would make away with the funds since their identity is unknown and likewise their users too. In this situation their is nothing one can do or hold anyone responsible for their lose.

 However, centralised exchange still does the same thing but the difference is that centralised exchange demands for KYC because they too are known so they would need to trust your identity first by demanding for KYC which you can be sure that you would keep your funds with them but the truth is that non of them are safe. Any asset that is not under your custody is not your own be it with Dex or cex, the assets does not belong to you because it is not under your custody unless you have them in your private wallet that is when you can say that the coin/token can be yours.

Never have the thought  of keeping your funds and assets with third party exchange. Keep them in your personal or self custodial wallet for your own safety.

[Agbe]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

You have a point Agbe. Fact is storing your coins on any exchange is a risk. Infact the risk is higher in the case of decentralised exchanges compared to centralised exchanges. The reason is because in a centralised exchange , you would have to do a KYC verification and they are like giving you a guarantee for your coins based on your KYC details. However for a decentralised exchange, you are pretty much anonymous and in that case you are risking your coins in detriment of you not releasing your KYC details.
None of decentralised or centralised exchanges is 100% safe for your funds or you since for both you are either risking your KYC details or your funds.

Your opinions and points are correct. It is not in any way advisable for one to store their their assets on a cex or Dex platform. It is not ideal because these platforms can not guarantee their own safety not to talk of your own assets  under their custody. 

It is good to send coins to and exchange and sell them at once and not to keep them there. And also I don't advise newbies to keep or store coins in decentralised exchanges. Though I have not used it before but from my observation, they have the element of third party dealing. Because before you trade coins there must be a third party buyers and the owners of the platform so in decentralised exchanges there are three persons involved in the coin trading. And the second person can who is the owner of the platform can freeze and unlock account as well.  So "not your key and not your coins" are also use in DEX.

[Cryptsafe]

  It is good to send coins to and exchange and sell them at once and not to keep them there. And also I don't advise newbies to keep or store coins in decentralised exchanges. Though I have not used it before but from my observation, they have the element of third party dealing. Because before you trade coins there must be a third party buyers and the owners of the platform so in decentralised exchanges there are three persons involved in the coin trading. And the second person can who is the owner of the platform can freeze and unlock account as well.  So "not your key and not your coins" are also use in DEX.

Centralised and Decentralised exchange serve same function.  The only difference is that the centralised request for KYC and is censored while the decentralised is not controlled by anybody and it is not censored. It is privacy oriented and does not request anything from users. I believe both exchange have same function and are programmed to operate similar functions or ways.  The decentralised is more open to all and doesn't require anything to start using for that reasons, it is very risky to use decentralised exchange to save or keep your assets and funds.

[Aanuoluwatofunmi]

The newbies can make use of a decentralized exchanges because its still far more better than using a centralized one, because their asset is more secured and they don't have to worry much concerning kyc, but that does not justify that the use of a decentralized exchange is the best means for storing our assets for a long time, we can consider the use of a non custodial wallet.

[Asiska02]

The newbies can make use of a decentralized exchanges because its still far more better than using a centralized one, because their asset is more secured and they don't have to worry much concerning kyc, but that does not justify that the use of a decentralized exchange is the best means for storing our assets for a long time, we can consider the use of a non custodial wallet.

Centralized exchanges are not a good place to store coins and from the name ”exchange”; it signifies that it is a place change your coins and not a place to store. The primary objective of those places are to exchange coins and also for trading for those that are into trading. If non-centralized exchanges can be offering that, maybe no one would even be using centralized exchange. But they all serve their purposes and one cannot take the work of the other, it won’t even go well. P2P are also done in exchanges which also includes the ability of you to change your coin/sell/buy from another person, it still involves exchange. For storing, they’re not a god place and it’s important every newbie to know and not try to deviate from the purpose of each.

[Mia Chloe]

It would be better not to have your coins stored up long term on exchanges. Be it CEX Or DEX you should keep your coins off exchanges and use only standard non custodial wallets.

Exactly an Exchange is an exchange be it a centralised exchange or a decentralised exchange it's not safe to store your coins there. One of the. Major things that makes storing your coins on an exchange wrong is about ownership and control of the coins  via a valid seed phrase or private key. In both Centralised exchanges and decentralised exchanges, you are actually risking one  thing for another in the sense that for a centralised exchange you are actually risking your KYC details while on a decentralised exchange you are kinda risking your funds too.

[Cryptsafe]

It would be better not to have your coins stored up long term on exchanges. Be it CEX Or DEX you should keep your coins off exchanges and use only standard non custodial wallets.

Exactly an Exchange is an exchange be it a centralised exchange or a decentralised exchange it's not safe to store your coins there. One of the. Major things that makes storing your coins on an exchange wrong is about ownership and control of the coins  via a valid seed phrase or private key. In both Centralised exchanges and decentralised exchanges, you are actually risking one  thing for another in the sense that for a centralised exchange you are actually risking your KYC details while on a decentralised exchange you are kinda risking your funds too.

Centralized and Decentralized exchange are both the same. Your funds can be seized at any given point in time while the centralized exchange demands for kyc in line with the regulatory policies, decentralized does not but both of them does not guarantee the safety off your funds while under their custody. They both can suffer hack at any given point in time so it is better you keep your funds in your own custody than allowing a third party do that for you with no guarantee for the safety of your assets.

[Mia Chloe]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

Exactly. If you are not the only person in control of your seed and the keys to your funds then you are pretty much not the owner of those funds or coins. The idea is in both cases wheather in the case of a decentralised exchange or a centralised exchange you are risking your funds. The idea behind hodling suggests that you are the sole and only owner of your coins and we all know that the idea of coin ownership is directly pinned to your seed phrase and keys.

Most people still HODL coins on centralised exchanges simply because they believe they are safe since they are bounded by government regulations, however they are actually just being naive.

[Sarionadukecom]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

Exactly. If you are not the only person in control of your seed and the keys to your funds then you are pretty much not the owner of those funds or coins. The idea is in both cases wheather in the case of a decentralised exchange or a centralised exchange you are risking your funds. The idea behind hodling suggests that you are the sole and only owner of your coins and we all know that the idea of coin ownership is directly pinned to your seed phrase and keys.

Most people still HODL coins on centralised exchanges simply because they believe they are safe since they are bounded by government regulations, however they are actually just being naive.

If both cex and dex are not safe then which is safe?

[Agbe]

OP don't even keep or store cryptocurrency in decentralised exchanges or centralised exchange but use self or non custodial wallet to store your coins. But if you want sell at dat time, you can transfer to dem and sell them off and not to keep dem there. Both decentralised and Centralised exchanges are term as, "not your key not your wallet".

Exactly. If you are not the only person in control of your seed and the keys to your funds then you are pretty much not the owner of those funds or coins. The idea is in both cases wheather in the case of a decentralised exchange or a centralised exchange you are risking your funds. The idea behind hodling suggests that you are the sole and only owner of your coins and we all know that the idea of coin ownership is directly pinned to your seed phrase and keys.

Most people still HODL coins on centralised exchanges simply because they believe they are safe since they are bounded by government regulations, however they are actually just being naive.

If both cex and dex are not safe then which is safe?

That is why you are here to learn. If you are investing, it is good you use self custodial wallets like, bluewallet, Electrum etc. Those ones are very save to keep and store bitcoin for years and nobody block or do anything to them. But in the Dex and Cex, you are not the controller of the wallet seedphrase, you are only a registered member of the exchange platform so the government policies can also affect you through the exchange. Just like what is happening in di country. Many exchanges have closed because of government pressure.