Decentralized exchanges

Decentralized exchanges (DEXs) are considered to be safer than centralized exchanges for a few reasons. First, DEXs are not controlled by a single entity, which means that they are not subject to the same security risks as centralized exchanges. For example, if a hacker were to attack a centralized exchange, they could potentially gain access to the entire exchange and all of its users' funds. This is because centralized exchanges hold all of their users' funds in a central location, making them a single point of failure.

On the other hand, DEXs are decentralized and do not hold users' funds in a central location. Instead, users' funds are stored in their own personal wallets, which means that a hacker would have to attack each individual user's wallet in order to steal their funds. This makes it much more difficult for a hacker to successfully attack a DEX and steal users' funds.

Additionally, DEXs often use smart contracts to facilitate trades between users. This means that the terms of the trade are automatically enforced by the blockchain, which eliminates the need for a trusted third party. This not only makes the process of trading more efficient, but it also eliminates the potential for human error or fraud.

Overall, the decentralized nature of DEXs makes them a safer option for users who are looking to trade cryptocurrencies. They are less susceptible to attacks, and the use of smart contracts helps to ensure that trades are executed fairly and transparently.