The actor made the admission in his new autobiography Danny Dyer: Straight Up, but insisted that he would never let drugs take over his life.
Dyer writes: "I've always taken drugs and I probably always will, but there's a difference between having the odd crafty bump up the snout as a reward for a job well done and letting it rule your life."
Defending his comments, the father-of-two said that he does not feel the need to draw a line under the issue, adding: "It's not like I'm a Blue Peter presenter, is it?"
According to the Daily Mail, Dyer said: "You can't brush it under the carpet and try and pretend it doesn't happen, because it does happen. It happens all over the world every night - millions and millions of people.
"And it can have a terrible effect on people, and other people can deal with it and get on with their lives and never lose a job and bring up their children, and be fine with it. I think everything in moderation."