Stay Safe in the Crypto Universe: Your Guide to Avoiding Scams

The world of crypto scammers.

As crypto markets are booming, so do the amount of scams to be wary of. Scammers use deceptive tactics to take advantage of and exploit unsuspecting victims. To stay ahead of them, you must be knowledgeable about how they work and tooling to help you do your own due diligence.

Common Crypto Scams

Know your enemy:

1. Phishing Scams: Fake emails, websites, or messages that steal your login credentials or private keys.
   • Tip: Check for typos, unusual domains, and verify sender information. Websites like coinmarketcap or coingecko can help you verify if the contract is the legit contract from a project, their websites, social medias and even communities.
2. Ponzi Schemes: Promising high returns, but paying previous investors with funds from new ones.
   • Tip: Research the project's background, team, and technology. Be cautious of unrealistic promises.
3. Pump-and-Dump Schemes: Artificially inflating prices to attract investors, then selling and leaving others with losses.
   • Tip: Be wary of sudden price surges and verify market trends. Always assess liquidity and market cap, along with other signals from dex screener, dex tools, coinmarketcap or coingecko type sites.
4. Fake ICOs: Promising groundbreaking projects, but disappearing with your funds.
   • Tip: Research the project's legitimacy, team, and technology. Verify official channels and URLs. Don’t invest too much into new “hot” tokens that aren’t putting much into their PR presence.

Research, research, research! Verify official channels, question high returns, and educate yourself. Use reputable exchanges and wallets like Trust Wallet.

Common Questions

Got questions about crypto scams? I've got answers!

1. How to recognize a phishing attempt?
   • Double-check URLs for typos or unusual domain names.
   • Be wary of unsolicited messages asking for sensitive information.
   • If it asks for your seed phrase or private key, it’s a clear scam
     1. Often, scammers will try to impersonate staff or customer support on telegram or discord in private messages to get this info from you
   • Verify the sender's email address and check for official communication channels.
     1. If it’s not from their official domain, or if it’s from a free service like gmail, it’s most likely a scam.
2. What to do if you suspect a scam?
   • Don't engage further with the suspicious party.
   • Report the incident to the appropriate authorities or platforms.
   • Inform your friends and family to prevent them from falling victim to the same scam.
3. Is there a guaranteed way to avoid scams?
   • Stay informed about the latest scam tactics.
   • Use reputable services and exchanges.
   • Be skeptical of unrealistic promises and verify information.
   • There is no true guarantee you won’t get compromised ever, however, following best practices like segregating wallets for different uses, spreading funds across multiple seeds, and other tips can help to ensure if you do get scammed you’re not facing a total loss.

Start prioritizing your security today by:

• Researching reputable projects and exchanges
• Verifying official channels and URLs using sites like coinmarketcap and coingecko
• Educating yourself on the latest scam tactics
• Using reputable exchanges and wallets
• Utilizing browser extensions like Wallet Guard, Scam Sniffer, and DeFi Lama
• Checking websites like Honeypot.is and DetectHoneypot.com for contract verification
• Staying informed with articles from reputable sites like Coindesk, CoinTelegraph, and CryptoSlate