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Security Guide

DEX Safety Guide

Practical security measures to protect your crypto when trading on decentralized exchanges.

The Golden Rule

In crypto, you are your own bank. There's no customer support to reverse transactions, no insurance for losses, and no way to recover stolen funds. Your security is 100% your responsibility.

The Reality of Crypto Security

$1.7B
Lost to phishing attacks in 2023
324K+
Wallet addresses drained in 2023
90%
Of scams could be prevented with basic security
0
Legitimate projects that ask for your seed phrase

Wallet Security

Use a Hardware Wallet

Critical

For significant holdings, use a hardware wallet like Ledger or Trezor. Keep your seed phrase offline, never on a computer or phone.

Separate Hot & Cold Wallets

Critical

Use a hot wallet with small amounts for daily trading. Keep the majority of funds in a cold wallet that rarely connects to dApps.

Never Share Your Seed Phrase

Critical

No legitimate service, support team, or airdrop will ever ask for your seed phrase. Anyone who does is a scammer.

Revoke Unused Approvals

Regularly review and revoke token approvals using tools like Revoke.cash. Old approvals can be exploited if a protocol is compromised.

Use Strong Passwords

Use unique, strong passwords for each wallet and exchange. Enable 2FA wherever possible, preferably with a hardware key.

Trading Safety

Verify Contract Addresses

Always verify token contract addresses from official sources. Scammers create fake tokens with the same name and logo.

Check URLs Carefully

Bookmark official DEX URLs. Phishing sites use lookalike domains (un1swap.com vs uniswap.org). Never click links from DMs or ads.

Start with Small Test Transactions

Before sending large amounts, do a small test transaction first. Verify it arrives correctly before sending more.

Understand Slippage Settings

High slippage tolerance can result in sandwich attacks. Use reasonable slippage (0.5-1% for major pairs) and MEV protection when available.

Check Liquidity Before Trading

Low liquidity pairs can result in massive slippage or inability to sell. Check TVL and trading volume before buying.

Be Wary of New Tokens

New tokens are high risk. Many are scams, rugs, or honeypots. If it seems too good to be true, it probably is.

Common Scams to Avoid

Phishing Sites

Fake websites that look identical to real DEXs. They steal your wallet when you connect.
How to Protect Yourself:

Bookmark official sites. Check URLs character by character. Never click links from messages.

Fake Airdrops

Free tokens that appear in your wallet. Interacting with them can drain your wallet.
How to Protect Yourself:

Never interact with unexpected tokens. Don't try to sell or approve them.

Honeypot Tokens

Tokens you can buy but not sell. The contract is designed to trap your funds.
How to Protect Yourself:

Check if others can sell. Use honeypot checkers. Avoid unknown tokens.

Rug Pulls

Developers remove all liquidity, making tokens worthless.
How to Protect Yourself:

Check if liquidity is locked. Research the team. Be skeptical of anonymous projects.

Social Engineering

Scammers impersonating support staff, influencers, or team members.
How to Protect Yourself:

Official support never DMs first. Never share seed phrases or sign suspicious transactions.

Approval Exploits

Malicious dApps request unlimited token approvals, then drain your wallet later.
How to Protect Yourself:

Limit approval amounts. Revoke approvals after use. Read what you're signing.

Red Flags to Watch For

Unsolicited DMs offering help

Scammers monitor support channels and DM people pretending to be support staff.

Too-good-to-be-true APY

10,000% APY? It's likely a ponzi scheme that will collapse when new deposits slow down.

Urgency and time pressure

"Act now or miss out!" - Legitimate projects don't pressure you into rushed decisions.

Anonymous teams with no history

While privacy is valid, be extra cautious with anonymous teams and no verifiable track record.

Unlocked liquidity

If developers can withdraw liquidity at any time, they can rug pull at any moment.

No audit or sketchy audit

Unaudited contracts are high risk. Audits from unknown firms may not be thorough.

Requests to disable security features

"Turn off your VPN" or "disable wallet warnings" are massive red flags.

Unusual transaction requests

Being asked to sign messages, approve unlimited tokens, or interact with unknown contracts.

Recommended Security Tools

Approval Management

Revoke.cash

Check and revoke token approvals across multiple chains. Essential for cleaning up old approvals that could be exploited.
Transaction Simulation

Pocket Universe

Browser extension that simulates transactions before you sign them. Shows exactly what will happen to your wallet.
Transaction Simulation

Fire

Another transaction simulation tool that helps you understand what you're signing before confirming.
Secure Wallet

Rabby Wallet

Wallet with built-in security features like transaction simulation, risk warnings, and approval tracking.
Hardware Wallet

Ledger / Trezor

Hardware wallets that keep your private keys offline. The gold standard for storing significant crypto holdings.
Security Scanner

De.Fi Scanner

Scans wallet addresses for risky approvals, suspicious tokens, and potential vulnerabilities.

Advanced Protection Strategies

Multi-Signature Wallets

Advanced

Use a multi-sig wallet like Safe (formerly Gnosis Safe) for large holdings. Requires multiple signatures to approve transactions, protecting against single points of failure.

Dedicated Trading Device

Intermediate

Use a separate device (phone or computer) exclusively for crypto trading. Keep it free from other apps and browsing to minimize attack surface.

Hardware Wallet + Hot Wallet Combo

Beginner

Keep 90%+ of funds in hardware wallet, use hot wallet with small amounts for daily trading. If hot wallet is compromised, losses are limited.

Burner Wallets for NFT Mints

Beginner

Create fresh wallets for risky interactions like NFT mints or new protocols. Transfer assets to main wallet only after confirming safety.

Regular Security Audits

Beginner

Periodically review your wallet approvals, connected sites, and transaction history. Set a calendar reminder to check monthly.

Security Checklist

Make sure you've covered these essential security measures.

  • Using a hardware wallet for significant holdings
  • Seed phrase stored offline in multiple secure locations
  • Bookmarked official DEX websites
  • Using separate wallets for different risk levels
  • Regularly revoking unused token approvals
  • 2FA enabled on all accounts
  • Understanding slippage and MEV protection
  • Never clicking links from unsolicited messages
  • Verifying contract addresses from official sources
  • Starting with small test transactions

If You Think You've Been Compromised

Act Immediately

  1. 1 Transfer remaining funds to a new, secure wallet immediately
  2. 2 Revoke all token approvals from the compromised wallet
  3. 3 Never use the compromised wallet again

Helpful Tools

Understand the Risks First

Safety is important, but you should also understand what can go wrong.

Read Risk Disclosure