Decentralized exchanges (DEX), such as Uniswap, PancakeSwap, 1inch or SushiSwap, give users complete control over their funds, but with that comes full responsibility for security. Below are the main principles of safe trading on DEX.
1. Connect your wallet only to verified DEX.
Before connecting, make sure you are on the official exchange website. Use bookmarks, not search engines: phishing sites often copy the original interface. Check the domain name and the presence of SSL (https).
2. Do not give access to tokens unnecessarily.
When interacting with DEX, you often sign permissions (approve) for token usage. Do not give unlimited access unnecessarily — always limit the amount of access if possible. Use services like Revoke.cash to control permissions.
3. Assess risks before a transaction.
Check the liquidity of the pool: too small a volume can lead to significant slippage or manipulation. Make sure the token is not fake — it's better to use aggregators (1inch, Matcha) that already filter fraudulent pairs.
4. Beware of MEV and front-running.
In the blockchain, your transaction is visible before it is processed. This gives bots a chance to 'cut' you (front-run) or execute a sandwich attack. Use protection options in wallets, such as 'private transaction' (in MetaMask through Flashbots RPC) or aggregators with protection.
5. Never accept 'airdrops' and do not interact with unfamiliar tokens.
If a strange token appears in your wallet — do not touch it. It may be a trap. Such tokens are often used for phishing and deanonymization attacks.
6. Use multiple wallets.
One — for storage, the other — for trading. Even if the DEX gets compromised, the main wallet will remain safe. You can separate assets across blockchains.
Conclusion
DEX trading is freedom and convenience, but also responsibility. Always double-check addresses, limits, smart contracts, and interactions. The most reliable way to keep assets safe is not to rely on luck.
