Is It Safe to Trade Cryptocurrencies on DEX?

This is a very critical and delicate question and is quite hard to answer in a generic manner.

This is a very critical and delicate question and is quite hard to answer in a generic manner. In the blockchain landscape, please be aware that anyone can create a project or tokens, including creating fake versions of existing projects and tokens that claim to represent projects. By trading cryptocurrencies, it is strongly advised that users should do their own research (DYOR) and trade at their own risk. Thus, whether it is safe to trade cryptocurrencies on DEX depends on each person’s risk torrelence.

But in technical speaking, the Automated Market Maker (AMM) is designed to reduce human errors or the doubts of having intermediaries. Many traders using DEX also believe in the concept of Code is Law in order to create the market’s algorithmic governance. If it is agreed that the mathematical algorithm designed by the AMM is secured, we can say that trading on DEX is technically safe.

Lastly, it is important to note that there are always some risks in any type of investment. Traders have the possibility of facing impermanent losses and unexpected market volatility. If this risk is researched, understood, and accepted then it’s fairly safe and comfortable to use DEX.