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Of course not. As far as I know they only trade games bought on Steam (no keys involved). Worst thing that could happen is that the gift will get revoked.
the login via steam is always safe, if you check url address bar. for more safety i would just login to the official steam website first, because when you then logon to a 3rd party website with steam oauth, it will just display your account and a sign-in button, instead of username/password input fields. with that little method you can not get phished.
Steamgifts.co is NOT legit.
Thing to remember: Certain games can not be picked as the game you're giving away. When that happens, don't pick the game name closest to it. If a game (or Steam bundle) isn't listed on the site, it's because it has been given away for free at some point in time. You can get banned or suspended for giving away free games on the site. Particulars can be given away, Particula can't be. Because you log in through Steam and refresh, it knows which games you have and don't have. You can also have it just display games from your wishlist.