Solana may have the advantage of being a low-cost chain, but is it the safest? Not exactly. There are still some risks and safety concerns you must be aware of before trading on a decentralized Solana exchange.
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Smart Contract Risk and Audit Status
Always check if the DEX has third-party audits and bug bounty programs. Even the biggest Solana DEX platforms are not completely risk-free. That’s why audit matters. An audit doesn’t make a platform completely safe, but it shows the code has been reviewed and tested at that time.
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Bridge Risks are Another Thing to Watch Closely
When it comes to DEX trading, cross-chain bridges are where the real problem lies. We saw this in 2022 with the Ronin hack and other times across the DeFi space. Bridges are prone to attacks, especially when they move funds from one network to another.
The best way to stay safe is to only use platforms that have been audited. For added security, avoid using new bridges, especially if they haven’t been audited. That‘s one way to lose your funds if things go south.
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Watch Out for Rug Pulls and LP Pool Vulnerabilities
Rug pulls are common in crypto, especially among new projects. The best way to stay safe is to be careful when dealing with new projects and avoid any project without proper documentation or a public team. That’s a recipe for a rug pull. Although not always, the most common rug pulls in crypto have followed that pattern.
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Wallet Best Practices
In DEX trading, your first job is to stay safe. Since DEXs’ trading is non-custodial, you have to be your own guard. Start by making sure you use strong passwords, or go for hardware wallets for extra safety. Seed phrases can get lost easily, or you forget a word or two. The best safety tip here is to back it up.
How to Spot a Scam Token on Solana?
Scams in crypto are common, but the truth is that they are also predictable. The easiest things to watch out for in detecting scams on Solana are unverified tokens, funny tokenomics, or even unknown creators. With the memecoin craze in Solana, there are a lot of scams and
Source: https://coingape.com/cryptocurrency-exchanges/dex/solana/
