What are the risks of using a non custodial crypto exchange?

3 answers

• Nov 24, 2021 · 3 years ago
  One of the risks of using a non custodial crypto exchange is the lack of centralized control. Unlike custodial exchanges, non custodial exchanges do not hold users' funds, which means that users have full control over their own assets. However, this also means that if users lose access to their private keys or make a mistake in their transactions, there is no centralized authority to help recover the funds. It's important for users to properly secure their private keys and be cautious when conducting transactions on non custodial exchanges.
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• Nov 24, 2021 · 3 years ago
  Using a non custodial crypto exchange can also expose users to the risk of scams and phishing attacks. Since non custodial exchanges do not have the same level of security measures as custodial exchanges, malicious actors may try to trick users into revealing their private keys or sending funds to fraudulent addresses. Users should always double-check the authenticity of the exchange's website, use strong passwords, and enable two-factor authentication to minimize the risk of falling victim to scams.
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• Nov 24, 2021 · 3 years ago
  As a third-party perspective, it's worth noting that while non custodial exchanges offer greater control and privacy, they also come with certain risks. Users need to be aware of the responsibility that comes with managing their own funds and take necessary precautions to protect their assets. It's recommended to research and choose reputable non custodial exchanges, use hardware wallets for added security, and stay updated on the latest security practices in the crypto industry.
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