Can I transfer crypto from CEX to DEX?

Asked 2 years ago

Hey! I started with crypto trading on a CEX about a month ago and just learned about a DEX. Ever since I learned that DEX offers more control of one's funds, I thought about switching to it for an added layer of security. Can I transfer my existing crypto from a CEX to a DEX, or will I need to withdraw it first?

Wilbur Padilla

Tuesday, May 24, 2022

You can’t transfer crypto from a CEX to a DEX. This is because DEXs don’t hold user funds – they only facilitate peer-to-peer trading. However, if your funds are in a CEX and you want to trade on a DEX, you can do so by transferring them to a DeFi wallet first. Allow me to use Binance (a CEX exchange), MetaMask (a DeFi wallet), and UniSwap (a DEX) to demonstrate this point.

First, you should send BTC from your Binance account to your MetaMask wallet. Copy your BTC address on MetaMask, navigate to the “Send BTC” page on your Binance account, fill the fields appropriately, and click “Withdraw” to initiate the transaction. You will receive your funds in your MetaMask wallet in about five minutes.

Now from there, you just need to connect your MetaMask wallet to Uniswap to trade. Visit the Uniswap website, and click “Connect Wallet” on the top right corner. A pop-up window of MetaMask will appear and request you to confirm the connection request. You can then trade on Uniswap as you want.

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